Recently Department of Stamps and Registration, Govt of Karnataka revised guidance value for properties belong to Bangalore Urban, Bangalore Rural and Ramanagara District. So let us view the heat of the same 🙂
Let us first understand what is the guidance value of property. It is the value below which you can’t register your property.  But there are few exception rules to it. Suppose Govt guidance value of the property you are interested to buy is around Rs.10,000 per square feet, but you felt that this is at the higher side than the market rate. If you showed the value is below than the guidance value then sub-registrar refers it to district registrar. District registrar after reviewing the property fix the guidance value. This value is final and you need to pay the tax on this. It may be equal or higher to guidance value. But usually the market value will be higher in all cases when one look at the madness about property investment.
In guidance value there are two types.
1) Land Value-This value is only for lands not for any constructed properties. Hence an open site value is measured as land value.
2) Composite Value-This value is for the constructed properties where it includes both land value as well as the value of buildings.
In Bangalore property guidance values are revised to the tune of 40% to 100% in some areas. It was revised last time in September 2011. By raising this value Govt is indirectly increasing its revenue. Also there is an expectation that the Govt is going to increase stamp duty and registration fee. Currently in Karnataka State stamp duty is 5% and 1% as registration fee. So total one need to pay 6% as the cost of registration.
Few feel that time being it will impact property investment. But going by the craze of the investors, I feel it as a temporary pause. Usually builders and developers increase their margins too based on the revision of guidance value. So it directly increases the property value in Bangalore. Let us find out guidance values of few popular areas of Bangalore (open sites).
As of now I come to know that the revised values will be applicable from August 12th 2013 (Times of India dated August 13th 2013). But there is no updation available from the Govt site. Also the above prices still showing as temporary rates subject revise based on the public opinion.
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Probably everyone has a dream of getting a home constructed in Bengaluru. It is a very helpful in this regard. Thank you for sharing.
Dear Parinitha,
Thanks.
Hi,
Thank you for helping most people with their queries.
Can you help me with the Govt. Guidance value for the location - BBMP KHATA NO. XXXXXXXXXXXXXXX - Muncipal No.37,
Panathur Village, Varthur hobli
Teja-I can't for individual properties. Sorry.
Recently I bought a property in Rajarajeshwari nagar got loan approval and done with all formalities with the builder now its a time for registration wondering how much the cost for registration Can anybody help on this, please, as i live abroad not sure how much cost is incurred.
Patur-Refer my recent post "Flat, land and Property Stamps and Registration charges in Bangalore and India".
Hi,
I need help. I registed one flat with around 1.8 lacks before march 2016 now builder is telling it is increased and required 3.4 lacks for registration from April 2016. Could you please help on the same. Is it correct that value of the property is increased with the double amount?
Pradeep-Sadly there is no specific guidance of how your landlord or any such landlords arrive at values. If you need that property, then go ahead. Otherwise stay away.
How do I find out the guideline value for a property in particular road. I'm looking for a property say in 4th Cross, 14th Main, HAL 3rd stage. I could see in different websites the guideline value for an area like HAL 3rd stage. With in that depending on the Road width and nearness to main road access, does the guideline vary? How much is the approximate ratio of guideline to market value in Bangalore. Your inputs will be really helpful.
Harish-You have to check it in Govt portal. If you not found the same, then contact the concerned register office.
I have shortlisted one resale flat to buy in Vinayaka nagar, Murugeshpalya near wind tunnel road. How should i arrive on the value of the flat to negotiate with the seller. it's a 2 BHK flat of area 1250 sq ft and G+2 storey building and 12 years old. Total area of the building is 4800 sq ft and in each floor 4 houses are constructed. It is in between Total mall and old HAL airport. Kindly suggest me.
Sujith-It is hard to analyze. Because it is one of BIGGEST sector which not have any guidelines to arrive at true price.
What will be the stamp duty / registration charges if we are going to purchase a resale flat which is 8 years old in Bangalore.
Mohammed-Contact the sub-register office of your area.
I purchased 30X40 site in Srikantapura village and registered in Madanayakana halli registrar office last week, i did not paid full amount, i have given cheque upto June, some one is telling without paying full amount, REGISTRATION will not be done, but they did i to me. how please let me know
As it is my first property, i was not aware much about the land, one of my family friend guided me, i dont know whether he helped me or cheated, because i paid 1100 per sq feet and registration charges Rs. 96,000.00, after that i came to know i paid more and offcourse i have to take some loan from bank, as we are not rich people.
I need below clarification
1) as this is GRAM TANA site any problem in future
2) without paying FULL amount, registration is possible?
3) Any precaution, any papers to be collected from them
Please help me out as i am not having proper food and sleep, because i am afraid whether these people will cheat be as i paid 8 lakhs already, and i have to pay still 5.2 lakhs, ple.......... guide me
Gayathri- 1) No problem if it is approved plan and NA conversion done with proper ownership. 2) Payment must be according to deed. I don't know how much mentioned in deed and how much you paid to owner of property. Also how can he sign on deed without getting his full payment? Confusing question to me. 3) You have to check all documents before buying, if possible an expert lawyer.
Hi Basav,
I am purchasing a constructed house at NGEF Layout (Sadanandanagar). The site was alloted to current owner via NGEF Employees housing Society. Its having A khata, Title Deed, ECs, Extracts, PC,... all is fine. But, as i am applying for loan with SBI, the bank is asking for Conversion letter. The owner also does not have this and it looks like none of houses there have this particular letter. Owner has been staying in the property from 93 onwards and the site was alloted during 86-87. Not sure why the bank needs this, when all the papers are fine.
Owner and myself, also tried approaching BDA office, DC's office for this letter. BDA says, conversion will be in DC's office, where as when contacted the DC office, they there is no conversion for this.
Not sure, how to get this or any alternate letter to fulfill banks needs?
Regards
Raj
Raj-Not sure what went wrong in your case. But yes, banks need conversion letter.
I am planning to buy a flat located at Off Sarjapur road near Carmelaram Railway Station(After Flyover/Back side of Decathlon), Builder mentioned that its BDA approved-Panchayath A katha (Builder informed that this land in Koadthi Village So Panjayath A katha we have and this land not yet under BBMP limit, It may come in future). Also builder mentioned that this project approved all major banks like SBI,HDFC,LIC, ICICI, IDBI and Axis Bank. Is it right choice to buy this flat? Kindly suggest.
Rajesh-Without knowing much about property documents, how can I guide you? Better to contact any expert lawyer for the same.
Just Need to understand that buying BDA approved project with Pachayath A katha flat having any problem in current and in future or not? also Can You suggest any expert lawyer name to whom I can approach with documents?
Rajesh-If documents are legal then no problem. Sadly I don't know any lawyer whom I can say as EXPERT :)