Want to buy flat
Atul K K
(Querist) 27 August 2015
This query is : Resolved
I want to buy a flat and seller asking 27 lac but want to do agreement with 16 lac only as circle rate is such. Want to know whether we can make agreement above circle rate and also how to check what is the circle rate in that area. Can we check this online. Also please suggest whom to contact to get legal papers checked which seller will give me for property
M/s. Y-not legal services
(Expert) 27 August 2015
you can check the guideline value through your state govt registration department website..
Rajendra K Goyal
(Expert) 27 August 2015
Check from the Registrar office.You can make agreement above circle rate.
Anirudh
(Expert) 27 August 2015
If you are going to pay Rs. 27 lakhs, why do you want to show only Rs. 16 lakhs in the documents for registration?
Probably, your idea is to save on stamp duty.
But, you should realise, that first your spending your hard earned money of 11 lakhs more. For the sake of saving few thousand rupees in stamp duty if you do registry for a lesser amount (equivalent only to the circle rate), you will be the loser in the long run. This is because, when you sell the property in future, at that time only 16 lakhs will be taken into account for the purpose of indexation and consequently you will be ending up paying more Capital Gains Tax.
God Forbid, if something wrong happens in the transaction and if you have to recover the money from the seller, unless you show Rs. 27 lakhs, you will get only Rs. 16 lakhs.
There is no bar in registering the property above the Circle Rate, if in fact you are actually paying higher than the Circle Rate. The condition is that the registration will not take place, unless stamp duty is paid at Circle rate (in cases where the consideration shown in the documents is lesser than the circle rate).
By showing Rs. 16 lakhs in the documents, while actualy paying Rs. 27 lakhs, you will be helping in generation of black money to the tune of Rs. 11 lakhs.
Atul K K
(Querist) 27 August 2015
Thankuuuu all...
Anirudh - It's not me who is decreasing agreement amount. I am ready to have total amount in agreement. It is the seller who is saying I will not show price more than 16 as rest he wants as unshowed income.
Kumar Doab
(Expert) 28 August 2015
Try to look for another property/seller that is amiable to your T&C.
The seller is also benefited since he won't have to worry to stack unaccounted money.
M V Gupta
(Expert) 28 August 2015
The experts have well explained the implications of showing less price in the sale deed than what u are going to pay to he seller. Dont encourage creation of black money.
Atul K K
(Querist) 29 August 2015
Thankuuuu all appreciate your expert remarks but it is the need of buyer and 99% seller deals in this manner only. I have asked so many sellers and everyone saying that we will make agreement of only 50-60 % of actual selling price
