Transfer of Property Act
Heaven 2011
(Querist) 23 July 2009
This query is : Resolved
Dear Sir,
Ours is a real estate Company. While delivering the flats usually the registration cost is borne by the buyers. Is there any provision that the buyer only pay the registration costs and not the developer/seller? What is the consequence of non payment of the registration costs? So far i have searched the Transfer of Propperty Act and the Registration Act, i find no statutory answear in this regard. Then which statute govern this? Kindly advise.
Best regards,
Asish
A V Vishal
(Expert) 23 July 2009
Who has to bear the registration cost is the mutual agreement between the vendor and the vendee. However, according to common market practises, the vendee incurs and bears the registration costs and expenses.
sanjeev murthy desai
(Expert) 23 July 2009
Dear Asish Sil,
I difer opinion with Mr. Vishal.
Indian stamp act clearly provides that the stamp should be paid by Purchaser/lessee/donee/ transferee.
With out paying the registration fees to the cocernauthority cannot register your document which is should be registered under the law. You have to bear the registration and other expenses.
sanjeev desai
A V Vishal
(Expert) 23 July 2009
Thanks Sanjeev,
Can you kindly refer the section.
sanjeev murthy desai
(Expert) 23 July 2009
Dear Sir,
Section 29 of the Indian stamp act.
sanjeev desai
H. S. Thukral
(Expert) 23 July 2009
Section 29 of the Indian Stamp Act provides as to who shall pay duty but if an agreement is made between the parties regarding this liablity the same shall be applicable. To that extent I go with Mr. Vishal.
A V Vishal
(Expert) 23 July 2009
Sanjeev
Please clarify the opening para of S.29 which states as follows:
29. Duties by whom payable
In the absence of any agreement to the contrary, the expense of providing the proper stamp shall be borne-
It says in absence of any agreement to the contrary........
sanjeev murthy desai
(Expert) 23 July 2009
Dear Vishal Sir,
Iam not disputing if is there any agreement between the parties in this regard otherwise section 29 should apply.
Thank you
Y V Vishweshwar Rao
(Expert) 23 July 2009
A good discussion /information ! conclussively , if there is no agreement between the Vendor and Purchaser , the purchaser shall pay the Stamp duty and Registration Fee !
A V Vishal
(Expert) 23 July 2009
Take it easy Sanjeev, I only conveyed that I had in the opening line of my reply have expressed that "Who has to bear the registration cost is the mutual agreement between the vendor and the vendee". In absence of such an agreement and the prevailing market practise the vendee pays it. Actually I wanted to convey that in absence of any agreement the vendee has to bear the expenses of registration. The reply should had contained the words as per the Indian Stamps Act instead of market practise. Thanks for showing the error that crept into the reply.
