TFP Bureau,?Raipur, November 16, 2024: In a major relief for middle-class property buyers, the Chhattisgarh government has announced a significant reform in property registration rules. Under the new policy, the registry fee for property transactions will now be calculated based solely on the guideline price, even if the actual deal amount exceeds it. This change, introduced under the leadership of Chief Minister Shri Vishnu Dev Sai, aims to ease the financial burden on buyers and improve transparency in property transactions.
Previously, registry fees were charged on whichever was higher: the guideline price or the actual deal value. For instance, if the guideline value of a property was ₹10 lakh and the deal amount was ₹15 lakh, the registry fee at 4% was calculated on ₹15 lakh, amounting to ₹60,000. Under the amended rules, the fee will now be charged only on the guideline price. Using the same example, buyers will pay ₹40,000 at 4% of ₹10 lakh, saving ₹20,000.
Finance Minister Shri O.P. Chaudhary highlighted the dual benefits of this amendment: middle-class families dependent on bank loans will now have better access to loans based on the actual deal value, and the policy will promote transparency by encouraging buyers to disclose the true transaction value in registry papers.
“This reform ensures that middle-class families are not penalized for honest transactions,” said Minister Chaudhary. “It also simplifies the property market and protects buyers in cases of legal disputes or fraud.”
The new rule aligns Chhattisgarh with Madhya Pradesh, the only other state where registration fees are not influenced by higher deal values. In most states, fees are calculated based on the greater of the guideline price or deal value, discouraging buyers from declaring the actual transaction price.
The reform will also address long-standing issues in the property market. Buyers often report a lower deal value, close to the guideline price, to avoid higher registration fees. This practice affects loan eligibility, as banks offer loans based only on the declared deal value. Additionally, buyers face challenges in legal disputes, as compensation for fraud is based on the registered price. By mandating registry fees on guideline prices while allowing the declaration of actual deal values, the new policy ensures buyers receive fair compensation in such cases.
This initiative is expected to benefit thousands of middle-class families across the state, especially those relying on loans to purchase property. It is also a step toward fostering a more transparent and equitable property market in Chhattisgarh.
