In India, what are the sales agreement execution fees to be paid for property?

 The fee is zero if you execute on your own + stamp duty

It's very simple and easy to execute a property sale agreement without paying any processing fee. Just follow the below step-by-step procedure to execute your sale agreement.

Step 1: Prepare a draft agreement in word format. A draft looks like the below images

Step 2: Share the draft with seller, buyer, advocate, and your bank if you opting for home loan. The intention of sharing is to cross-verify corrections. Preferably share through email to record communication.

Step 3: If you are opting for home loan, it's important to frank a sale agreement. Your bank should able to say the franking cost.

Generally, the franking cost is 0.1% of selling price. For example the selling price is Rs. 83,00,000/. The franking cost is Rs. 83,00,000X 0.1% = 8,300/-

But for some cases, if you have good rapport with your bank, your bank may advise you to use only Rs. 200 e-stamp paper instead franking of 0.1% of selling price.

(Many people often confuse with franking and e-stamp. Franking and e-stamp are the two different modes of paying stamp duty to government. It is advisable to use e-stamp if your stamp duty is less than Rs. 500 or use franking mode if your stamp duty is more than Rs. 500.

Step 4: As per your bank, if your stamp duty is less than Rs. 500, get e-stamp paper from your nearest co-operative bank, court, or sub-registrar office.

Following are the details requires to buy e-stamp paper.

  • Seller Name
  • Buyer name
  • Title of document (Sale agreement / Agreement of sale / Agreement to sell)
  • Stamp duty value (For Example Rs. 200 or 500)
  • Your contact number (through your contact number not shown on stamp paper, it requires for vendor reference)

The cost of e-stamp paper: stamp duty + Rs. 15 vendor processing fee. (For example: the stamp duty is Rs. 200 + 15 = 215/-). The total cost of e-stamp paper is Rs. 215/-

An e-stamp paper looks like the below image.

As per your bank, If your stamp duty is more than Rs. 500/-, prefer to choose franking mode. The franking cost is paid in the mode of DD

Say for example : The selling price of a property is Rs. 83,00,000. Bank told us to frank 0.1% of selling price, hence the franking cost is Rs. 83,00,000 X 0.1% = 8,300.

Take a DD in the value of Rs. 8,300/- and in the name of sub-registrar. Bank charge around Rs. 250 to process DD. Below DD image for your reference.

Step 5: Print the drafted sale agreement on the normal A4 size paper. Seller and buyer should sign all pages of sale agreement.

Two witnesses, one from seller and another one from buyer should sign on the last page of sale agreement. Must include witness name, address, and contact number.

Step 6: Carry a signed sale agreement and DD to sub-registrar office for franking.

In sub-registrar office, a token number will be allotted, accordingly wait for your turn and submit the DD & signed sale agreement to officer.

Step 7: An office enters details of DD and applicant name in computer and prints the franking on backside page of your sale agreement.

Below franking image for your reference.

Franking payment receipt will be handed over, below image for your reference,

The franking cost is offset while sale deed registration. For example: At the time of sale deed registration, you shall pay only 5% of stamp duty instead 5.1% stamp duty of selling price.

This completes the execution of sale agreement, which complies with legal standards and can be challenged in court in case of any dispute

For more secure and high-value transactions, one can register the sale agreement. However, sale agreement registration is not mandatory for home loan applications. FYI

Note: Stamping and registration being state subject, the government charges may vary between states but the procedure of execution is almost the same throughout India. My above answer is more relevant to Karnataka including Bangalore jurisdiction.

We provide end to end assistance with sale agreement drafting + execution + franking + home-delivered, to opt for our service, please whatsapp to + 9 1 - 9 7 4 2 4 7 9 0 2 0.

Thank you for reading…

Comments

Post a Comment

Popular posts from this blog

Who provides a good service on exterior cleaning in Bangalore?

Image
  When it’s time to give your home’s exterior a good cleaning, Whatsapp to +91 - 9 7 4 2 4 7 9 0 2 0. Your home will love you! When it comes to the inside of your home, you usually stick to a pretty regular cleaning schedule. But it’s easy to forget that the outside of your home needs some attention too! But after a long winter, all sorts of dirt, grime, mold, mildew, and other nasty substances can collect on your siding, windows, walkways, patios, and more. Cleaning your siding regularly extends its life and adds instant curb appeal to your home. Virtually every surface of your home can be “detailed” by us. Our friendly, janitors have the knowledge and equipment to clean your siding, windows, trim, flashing, gutters, decks, patios, and driveways. One phone call or Whatsapp and you can schedule your visit from us. House Washing Services We use two methods to wash your home soft wash or hand wash and pressure washing. Both methods are effective. For vinyl, wood, and delicate surface...
Read more

What is the format for an affidavit for a joint Khata transfer BBMP SAKA online service?

Image
When we apply for BBMP khata transfer through online (Sakala online service), Just one e-sign is accepted. As of now, no provision for multiple e-sign for one application It means, among the co-owners, only one owner can able to represent the khata transfer application. Hence it is mandatory to submit an affidavit for joint Khata transfer, to represent an applicant. Below is the format of an Affidavit for Joint Khata transfer. AFFIDAVIT FOR JOINT KHATA TRANSFER (Title should come at center) We, OWNER NAME 1 aged about __ Years, S/o __________________ and OWNER NAME 2, aged about __ Years, S/o ________________ both residing at _____________________, are applying for the joint Khata transfer for property, which is situated at No. ________________, In the ward No. ___ and zone _______________ of BBMP. PID Number/ Old Khata No/ Survey No is _____________, We both are the joint applicants for Khata Transfer, and we authorize OWNER NAME 1 for e-signing the application for Khata transfer on o...
Read more

Can you share a sample affidavit for a birth certificate by parents in India?

Image
  Below is the sample affidavit issued by Mother Below is the sample affidavit issued by Father A notarized affidavit looks like the below image, If you don’t have birth certificate or correction in birth certificate, it is mandatory to get birth affidavit from both mother and father. especially for visa purposes. Below is the step by step procedure to make an affidavit Step 1:  Prepare affidavit draft in word format. Step 2:  Buy Rs. 100 Non-judical e-stamp paper from nearest co-operative bank, court or register office. Step 3:  Print the draft on Non-judical e-stamp paper. Step 4:  Carry printed affidavit and supporting documents. Meet the notary public near you. Step 5:  Parents should sign affidavit in front of notary public. Notary public seal and sign the affidavit. Register in notary book. This completes affidavit execution. We provide affidavit service with notary. Our service includes home delivery. To opt for our service, please Whatsapp to 9 7 4 ...
Read more