Is it compulsory to pay stamp duty in under construction flat


I have booked a flat of Rs 85 Lakhs in western suburbs of Mumbai Paid 3 installment of Rs 24 Lakhs Flat is under construction and possession is by end of Dec 2020 Builder is suggesting me to register the flat and pay stamp duty as per RERA before 31/03/2018. I am currently out of India and will reach Mumbai in last week of April 2018. I would like your advice to know a) Whether it is compulsory to register and pay stamp duty b) If it is compulsory and because of genuine reason I am not able to register the flat, what are the available options for me. b) If I do not do registration, what are the implications on me from RERA, are there any penalty etc

Answers (1)


311 votes

Hi. In Bombay there are many builders who don't enter into agreement with the purchasers in order to avoid the liability on the part of the builder under the agreement. So it's quite good that your builder is asking you to register the agreement. Moreso after coming into operation of RERA a builder has to compulsorily enter into a written agreement with the buyer before accepting any sum of money greater than 10% of total consideration. Further an agreement is a title document in your hand which records that the particular apartment has been sold to you among other things. This is infact protective for you as once the builder executes an agreement for the flat to be allotted to you, he can't sell the same flat to any other party as the registered document comes in public domain. So I highly recommend that you sign and register the agreement with the builder. Coming to stamp duty, yes it is compulsory for payment of stamp duty. Keep in mind that the stamp duty rates are upward revised every year. So if you keep on delaying the registration of the agreement, you may have to bear extra stamp duty due to the yearly upward revision in stamp duty. Lastly there is no penalty under RERA on the purchaser for non registration of agreement except for the fact that you may be running the risk of a double sale and additional stamp duty as explained above. Further there are obligations to be complied on the part of the purchaser under RERA and if I'm not mistaken, one of them is entering into agreement with the builder and getting the same registered when called by the builder. Obviously if the builder delays the registration of agreement after accepting more than 10% of total consideration, then he runs the risk of being in violation of RERA. So your builder has rightly asked you to register the agreement. As to your concern that you are not presently available in Bombay, you can simply execute a special power of attorney in favour of a trusted person for the purpose of signing the agreement and admitting the execution before the registration authority on your behalf. If you don't have money to pay for the stamp duty and registration fee then you can request the builder to let you simply sign the agreement now and for registration you will then have 4 months time from date of signing. So it's upto your builder. Thanx


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