Finding a house that suits your needs can be a monumental task. A lot of research and planning goes into this pursuit. From finances to the correct location, every detail can be daunting. Once you have finally found the perfect place, another phase of difficult tasks begins. It involves not only ironing out the finer details and issues but also understanding the legal process and fees that are involved in being a homeowner.
Simplifying Home Purchase
In recent years, a lot of efforts have been dedicated by the Government in ensuring that the home buyer’s interest is protected by strengthening laws and stringently upholding regulations set by the government and municipal authorities. There has been an attempt to introduce transparency in this process by making information available to the public through the internet and making tedious processes simpler by taking them online. Transparency has benefitted all parties, including the people and the Government.
Becoming A Home Owner
An essential step in becoming a homeowner is the registration of the property under your name in all governmental records. This process requires every owner to pay stamp duty and registration fees to the state government. To make this process fair, state government publishes Ready Reckoner Rate (RRRs) periodically. This rate is the market value of the immovable property, assessed and regulated by the state government. It is published to ensure standardised and fair payment of stamp duty.
Understanding The Money Aspect
Ready Reckoner Rates determine the minimum rate at which any seller can sell a property in a particular area. Property rates can be higher, but they cannot be lower than the Ready Reckoner Rate of the city. These rates are also the minimum price at which the state government will levy stamp duty and registration charges. If the cost of the property is higher than the rate mentioned in the Ready Reckoner Rate of that area, the stamp duty and registration of the property is calculated, by the Government, on the actual valuation of the property.
For Example – If you are buying a home in a locality where the Ready Reckoner Rate is Rs.1000 per sq. ft. But the market rate is Rs.3000 per sq. ft. As a buyer, you will have to pay stamp duty and registration fees calculated as per Rs.3000 per sq. ft.
It is important to remember that Ready Reckoner Rates are the minimum price on which the Government calculates stamp duty and registration fees. The cost of the property as per the ready reckoner rate is also the minimum price/value of the property. Ready Reckoner Rates are revised periodically to reflect the current market prices.
While you purchase your new home, remember to research and consider the Ready Reckoner Rates as you make your decision. It can help you asses the correct value of your property, appreciation over some time, and evaluate the financial impact of mandatory fees on your overall budget.