DTCP caps registration charge at Rs 15,000

GURUGRAM: Now developers cannot demand more than Rs 15,000 from a buyer for registry of a house or a plot.

The department of town and country planning (

DTCP

) has capped the amount, providing a relief to investors who have so far been forced to cough up high administrative charges for the registry of properties.

Sources said in the absence of any monitoring, developers had been charging up to 1.5% of the price of properties, especially in new sectors, for registry. A homebuyer has to pay the administrative charge in addition to the stamp duty and other government taxes.

“For all licensed colonies being developed by various developers, it has been directed that in case the percentage of the administrative charge is not mentioned clearly in a builder-buyer-agreement, the amount should not exceed Rs 15,000,” said district town planner (DTP) RS Batth.

He also urged homebuyers to read all clauses of the

builder-buyer-agreements

carefully before putting their signatures. “Buyers can file a complaint with the department if there is any violation of the direction,” he added.

Batth said the move was taken following several complaints lodged by homebuyers on various platforms in this regard.

The matter was placed in front of the Allottees Grievances Redressal Forum (AGRF) on October 10, 2017. Deputy commissioner Vinay Pratap Singh, who is also the chairperson of

AGRF

, had then directed DTP for a detailed examination of the issue.

“Subsequently, a series of meetings were held with 10-15 prominent developers on the issue. It was found that they were demanding as high as 1.5% of the unit costs for executing the conveyance deed (registry). A developer cannot charge such huge amounts as administrative charge and also cannot force buyers to get the

registration

done as per their terms,” said Batth.

Homebuyers welcomed the DTCP move. “Most of the flats (in new sectors) cost above Rs 1 crore, so we had to pay more than Rs 1 lakh as administrative charge to the developer for arranging papers for the registry, which they are supposed to do anyway,” said Suresh Sharma, who has a flat in Sector 84.