In a significant development for homebuyers in Tamil Nadu, the state government has introduced a flat 9% registration charge for property registrations. This is a substantial increase, resulting in buyers paying nearly 50% more compared to the previous system. Previously, property registrations were conducted in two phases – one for the Undivided Share of Land (UDS) at a 9% registration fee and another for construction agreements with a 4% fee.
The move to a uniform 9% registration charge will impact the overall cost of property transactions, affecting both individual buyers and the real estate sector in the state. The decision to discontinue the two-tiered system is part of the state government’s efforts to boost revenue generation.
This change in registration charges comes at a time when the real estate sector is already facing challenges due to the economic impact of the COVID-19 pandemic. Homebuyers and developers are expected to face increased financial burdens as a result of this decision.
The increase in registration charges in Tamil Nadu underscores the importance of staying informed about changing government policies and their potential financial implications, especially when it comes to significant financial transactions like property purchases.
