Stamp duty and registration charges form an integral part of a property transaction. Whenever a property is sold in Dadra and Nagar Haveli, commensurate stamp duty and registration charges are levied, which are to be paid by the buyer to register the property in his name. 

The Stamp duty and registration charges in Dadra and Nagar Haveli are governed by the Indian Registration Act 1908. The prevalent stamp duty and registration charges in the region are as follows.

Stamp duty and registration charges in Dadra and Nagar Haveli 

Male - 

Stamp Duty rates -6 percent 

Registration Charges -0.5 percent 

Total registry charges  - 6.50 percent 

Female - 

Stamp Duty rates -4 percent 

Registration Charges -0 percent 

Total registry charges  - 4 percent 

Joint (Male+Female) 

Stamp Duty rates -5 Percent 

Registration Charges -0.25 percent 

Total registry charges  - 5.25 percent 

Ownership proof of the land

As a buyer, you must ensure that the land on which your home is being constructed is in the ownership of the developer. The sale deed might be in favour of the developer or in the form of a memorandum of understanding (MoU) between the developer and the original land owner.

Non-encumbrance certificate

A non-encumbrance certificate states the history of a property over the duration of 12-30 years, including the ownership transfers during that period, mortgages, etc. It should also state as the conclusion that the property is free from all encumbrance. Many banks also demand this document for processing of the home loan.

opy of the relative order in case of conversion of agricultural land

Townships and mega projects generally come up on lands which were earlier demarcated as agricultural areas. In such cases, it should be seen that the land-use pattern has been changed in the government records. In many cases, developers get some land converted and start construction according to their plan, hoping that they would get permission for the remaining land in due course. If this does not happen, the fate of your home may be in limbo. Buyer have to check the documents to confirm that their flats are being constructed on a residential land.

Copy of permission from appropriate authority and approved building plan

In many cases, developers have the permission to construct “X” number of floors but they get “X+Y” number of floors constructed. In such a scenario, if the buyer has skipped the above document, he would never know whether his floor is authorised or not. In case the flat/floor plan is not approved, there is always a danger of demolition from government agencies.

Land and building tax paid receipts, location sketch of property certified by revenue authorities

These documents help one to locate the property in the government records and it becomes easy to get the mutation of the property done in favour of the buyer. Obtaining the latest bills, tax paid receipts also lets us know whether all the dues have been paid or are still pending. 

Commencement certificate

A commencement certificate is applicable for an under- construction property. It is issued by the local development authority after inspecting the site. It allows the developers to start construction of the building and states that the permission has been duly obtained. Failure to obtain a commencement certificate can result in seizure, levy of penalties or even demolition of the construction which has already taken place.

Agreement of sale

It is at the initial stage that an agreement to sale is entered into between the parties. The property might still be at the construction stage and only an advance booking amount might have been given by the buyer to the seller. Agreement to sale elaborates upon the terms as agreed on between the parties. The date of possession, penalty clause, arbitration clause, jurisdiction and force majeure are among the major points about which the buyer needs to be cautious.

Original share certificate(s) issued by housing society

In many residential societies, shares are allotted in proportion to the person's ownership in the society. In such cases, the original share certificate is necessary to ascertain the subsequent transfer of ownership of the flat. This certificate also aid in the transfer of ownership in the buyer's name.

No-objection certificate from the residents welfare association (RWA)

It has been seen in certain cases that even after the transfer and registration of the property, many societies refuse to register the name of the buyer in their records. An NOC from the society obtained beforehand can be useful in such cases.

Occupancy and completion certificates

These two papers are applicable for a constructed property. The occupancy certificate is obtained by the developer after the construction has been completed. An inspection is carried out by the specified agencies to ascertain that the construction is done according to specified norms. The completion certificate is issued by the municipal authority which denotes that the building has complied with the rules in terms of height, distance from the road, and is constructed according to the approved plans, etc.

Letter of allotment from housing board /society/ private developer

A letter of allotment states that the premises have been allotted to you. It relinquishes the right of the housing board /society/private developer to allot the premises to anyone else from now on and transfers their rights to the allottee.

Sale deed

A registered sale deed is a legally acceptable evidence of the buyer's ownership of the property. The sale deed needs to be registered at the earliest. It must be ensured that the buyer as well as the seller, either in person or through their legally authorised representatives, sign the deed. The stamp papers should be of adequate valuation and details of parties as well as that of property is clearly mentioned.

Which are the parameters?

• Access to amenities is perhaps the most important parameter that influences the future value of your property. Compare amenities one by one, including proximity to transportation networks, schools, hospitals and offices. Also, check if your apartment complex has amenities such as parking space and playground.

• Some properties can be easily renovated, increasing space and turning otherwise useless areas into a valuable space. At times, you can sharply raise the value of the property by spending a reasonable amount of money. The layout of the property is an important parameter here. 

• Proximity with like-minded people is too important a factor to be left to chance. Even if everything else is good, if the right people do not live in your neighborhood, you probably will not enjoy living there. 

• The quality of construction is a very important parameter, too. The quality of the building material used, the quality of the paint, the fittings, wood and everything that is used in construction matter. 

• Is the seller open to negotiation? Many home buyers do not take this into account because they assume that the price of the property is final and not subject to change. But some sellers will be quite open to negotiation, while some are not willing to lower the price. This is an often neglected but a very important parameter according to which you should chose property.

If you are planning to buy a home, consider taking a joint loan instead of individual loan. A joint home loan is less stressful and you can share your debt-burden. Also, you can apply for higher loan amount as the co-applicants monthly income is also taken into consideration by the lender.  However, there are limitations on who can be your co-applicant in a home loan.  

• Increase in home loan eligibility 

Income of all the co-applicants are considered for home loan eligibility. This is one of the significant advantage of joint home loan as the lender considers the pooled income and not the individual income. 

• Tax rebates and deductions

All applicants in joint home loan are eligible for tax rebates under section 80C and section 24. These deductions are capped at Rs 1.5 lakh for principal repayment and Rs 2 lakh for interest repayment and additional Rs 50,000 under section 80EE for first time homebuyer. 

What if co-applicant refuses to pay the share

Since the liability to repay the loan as per schedule is joint on the part of each co-applicant therefore, each party would be liable for the repayment. While banks does not care whether the payment is made in the normal course by only one of the joint borrowers as long as the full monthly instalment is paid as per schedule. However, in the event of default, the lender will proceed with the usual recovery process which may include a legal recourse against all co-applicants.