In recent developments, the state registration department in Chennai has implemented a fee increase for several services related to property transactions among family members and non-family members. Notably, the fee for issuing power of attorney to non-family members has been revised. Previously, it was a fixed amount of Rs 10,000 per document, but now it will be calculated as one percent of the property's guideline value. For example, if a property's worth is Rs 1 crore, the new fee for power of attorney will be Rs 1 lakh, resulting in concerns among real estate developers about potential increases in property rates. They fear that these additional charges might be passed on to their customers.
The President of CREDAI, S Sivagurunathan, estimated that this 1% fee hike could lead to an impact of around Rs 100 per square foot on property prices. Interestingly, this is the first fee revision in nearly 20 years by the registration department and could affect approximately 20 different services, including registration fees for mortgage cancellation receipts.
However, there is some confusion among developers about the fee for power of attorney in joint venture agreements. The announcement from the registration department did not clarify how much developers or individuals would have to pay for power of attorney in cases where the developer acquirs a portion of the developed property from the owner.
In addition to the power of attorney fee increase, fees for settlement deeds, partitions, and signing release documents among family members have also been significantly raised. The maximum registration fee has gone up from Rs 4,000 to Rs 10,000, and the maximum stamp duty has increased from Rs 25,000 to Rs 40,000.
Furthermore, individual plot registration charges have seen a substantial rise, increasing from Rs 200 to Rs 1,000. These charges typically apply to individuals who are sick, immobile, or VIPs, as registration officials facilitate the process by going to their homes for registration.
The increase in the power of attorney fee has received support from some officials. A former additional inspector general of stamps and registration, A Arumuga Nainar, believes that this move will make people think twice before obtaining power of attorney for a property. Power of attorney transactions are often associated with opacity, and in other states, fees have been raised to nearly 4% of the property's guideline value to discourage misuse. Nainar believes this step will help put an end to high-value transactions conducted through power of attorney, promoting more transparent property dealings.
Furthermore, there has been a hike in fees for settlement deeds, partitions, or the signing of release documents among family members.
Wisdom Properties to guide you in the matter of the recent fee increase related to property transactions. We understand that these changes may have raised concerns among property buyers and developers. As your trusted real estate advisor, we are here to offer our expertise and support to help you navigate through these adjustments.
Regarding the increased fee for issuing power of attorney to non-family members, our team of experienced professionals will ensure that you are well-informed about the new calculations and its implications on property transactions. We will work closely with you to understand your specific needs and provide a clear breakdown of the fees involved, so you can make informed decisions.
For joint venture agreements, where the fee for power of attorney remains unclear, rest assured that Wisdom Properties will actively engage with the registration department to seek clarification on the applicable charges. Our priority is to provide transparency and clarity in all aspects of the property transactions we facilitate.
As for the revised fees for settlement deeds, partitions, and signing release documents among family members, our experts will guide you through the updated process and ensure compliance with the new regulations. We will also assist you in understanding the impact of these changes on property costs and any potential implications for your transactions.
For individual plot registration, our team will help streamline the registration process, taking into account the increased charges, and ensure a smooth and efficient experience, especially for individuals with specific needs, such as those who are sick, immobile, or VIPs.
At Wisdom Properties, we believe in promoting ethical and transparent property dealings. As such, we welcome the initiative to curb misuse of power of attorney transactions by setting appropriate fees. Our team is committed to providing you with comprehensive guidance to make well-informed decisions and ensure compliance with all regulations.
Please feel free to reach out to our knowledgeable team for any assistance or queries you may have. We are dedicated to supporting you with open hands throughout your property journey and making it a seamless and satisfactory experience for you. For more details, contact Wisdom Properties at +91- 93606-93606 or firstname.lastname@example.org.