What Is a Circle Rate? How It Affects Your Property Value & Registration Charges
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Circle rate is the government-notified minimum property value for registration purposes. It directly influences your property’s worth on paper and the registration charges you pay. Understand how it differs from market value and why it matters for both buyers and sellers in the real estate world.
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Frequently Asked Questions
Can I register a property below the circle rate?
Ans: No, the government will calculate stamp duty and registration based on the prevailing circle rate, even if the property is sold for a lower amount.
How often does the circle rate change?
Ans: The local authorities may revise circle rates annually or during major market changes. It's advisable to check the latest rates from the registrar office or official websites.
Is the circle rate the same for all types of properties?
Ans: No, circle rates vary based on the type of property such as residential, commercial, or agricultural and the specific locality.
How does circle rate affect stamp duty?
Ans: Stamp duty is calculated as a percentage of the circle rate or market value, whichever is higher. Hence, a higher circle rate increases the payable stamp duty.