Construction Agreement Compulsory Registration

According to the new guidelines, registration of the UDS would not be considered if the declarant did not present the construction contract. In the event that the registrant claims that he or she registers the UDS but does not carry out construction work, the registrar will inspect the property prior to registration. Previously, it was not mandatory to register the construction contract when buying a new home. The buyers recorded only the total share of land (UDS) and paid a royalty of 8 per cent of the consideration mentioned in the agreement. So far, a new home buyer only declares title to the share of unshared land, for which the registration fee must be incurred at 8%. (stamp fee + registration fee) The new rule would not apply to construction contracts concluded before October 1. The registration fee is 2% (1% stamp duty + 1% registration fee) of the construction costs. Since October 1, the government of Tamil Nadu, by country like Karnataka, has made it mandatory to register a construction contract at the same time as the deed of sale of UDS. Tax filers now have to pay 2% of the additional construction costs. Construction costs include the cost of building the apartment, the price of parking spaces, club fees, and the costs of electric board and water and wastewater connection. The mandatory registration of contracts for the construction of new housing, mandatory since October, is accelerating. To date, more than 400 deals have been registered, generating Rs1 crore revenue in the government. With clear guidelines and strict procedures, officials expect that number to increase in the coming days.

Who must bear the stamp duty and registration fees while opposing the construction contract. Registration of construction contracts between owners and buyers of new housing has been made mandatory in Tamilnadu with effect from 1 October 2013. The details of the construction contract and the date of the first payment to the contracting authority should be included in the UDS deed of sale. If the declarant files the two agreements – Bau and UDS – together, the SRO would first register the construction contract and enter the details of the UDS deed of sale. If a declarant claims that his apartment was executed before the deadline, the registrar may insist on checking details such as the date of the first payment to the client. The registration of the construction contract must take place within 120 days of the signing of the contract and the UDS is registered only when the registered construction contract is established. The rule came into effect on October 1, 2013. To implement this new rule, the registration department has defined detailed procedures and ordered all sub-registrar services (SRO) to comply with it.. .

.