Dear all

I am purchasing a resale 2BHK flat in Baner, Pune. The owner is quoting basic value as 72 lacs for 1300 sqft approx. Over this i have to pay the stamp duty, registration, TDS & brokerage.

Now the problem/confusion:

The broker is saying that the market valuation of this flat in Baner is something around 75 Lacs & now after the change in the circle rates/valuation rules after PMC notification from April 2016 the valuation has become 82 Lacs for the same flat & the owner cannot make the agreement below the market/ circle rates. The broker is saying the we have to pay the stamp duty & other taxes as per that valuation that is 82 lacs & register the flat at 82 Lacs but pay less to owner i.e 70 or 72 Lacs which ever is the final negotiation cost.

***I am very confused. I dont understand this phenomenon & Kindly help...
***How do they calculate the circle rate or market valuation?
***What is there source? or Where can we find this valuation cost for calculating registration amount?
***Has the valuation really changed after March 2016 ?
***Or Do you have any suggestions for me as what to do in this case?

Dear Experts/Seniors kindly help. .... Thanks
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  • I believe the market rate you are talking about is the Ready reckoner rate.
    This is the price which corporation decide for various areas of the city.
    Yes, Ready Reckoner rate was announced in March '16. I believe it is effective from April '16 (not sure on the effective date).

    I am also looking for a resale flat and I was told the something similar from the agent.
    My understanding, is that if Ready reckoner rate is higher than agreement cost, then you will have to pay stamp duty on that price.

    Seniors please confirm my understanding.
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  • I believe, you calculator basic cost based on carpet area multiplied by per sq ft rate. Ready reckoner price for Baner area I think is 6 to 8 k per sq ft. You would have to pay stamp duty and other few taxes on whichever amount is greater.
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  • Originally Posted by Explorer24
    Dear all

    ...
    ***I am very confused. I dont understand this phenomenon & Kindly help...
    ***How do they calculate the circle rate or market valuation?
    ***What is there source? or Where can we find this valuation cost for calculating registration amount?
    ***Has the valuation really changed after March 2016 ?
    ***Or Do you have any suggestions for me as what to do in this case?
    ...


    since this amount does not go into broker's pocket, they will usually not mislead you on this part of the deal. your broker is right. don't spend time on how the ready reckoner rates are calculated. instead put more effort in bargaining on the price which is the biggest % of the deal.
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  • May be this will help..

    Ready Recknor(RR) rate is the "bare" minimum rate at which a property flat/land should be sold.
    If any buyer buys it at a lower rate then he has to still pay the stamp duty on the balance amt (For e.g If RR rate is A and buyer buys it at rate B where B < A then additional stamp duty has to be paid on (A-B) alongwith the stamp duty on price B)

    Dont rely on seller or broker...go to the registration office and get the RR rate of the flat...you will just have to pay around 500 bucks (including grease money) ...this is better because RR rate varies from building to building and survey number wise. Have clarity so that you dont have trouble in future (pay penalties etc)

    RR rate is generally updated/changes in Jan but this year they have done it in MArch ...to be effective from April.

    Govt statred RR concept to curb black money and people inventing ways to avoid paying stamp duty charges
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