Circular No.2, dated 27.2.2018
Office of the Inspector General of Registration, Chennai - 28, issued Circular No.2, dated 27.2.2018, to clarify how value should be taken for registration of undivided share of land in residential apartments. It says registering officers should usually use the existing street value or site rate already in the Market Value Guidelines Register, and should not fix a separate new rate for a flat premises unless the survey numbers involved require fresh site rate fixation under the earlier procedure.
What this circular does
Office of the Inspector General of Registration, Chennai - 28, issued Circular No.2, dated 27.2.2018, as a clarification on value fixation for registration of undivided share of land, UDS, in residential apartments. It explains that earlier instructions about fixing new house site rates for newly formed layouts do not automatically apply to apartment or flat projects.
Who it affects
This circular matters to:
- flat buyers whose sale deeds include undivided share of land
- apartment promoters presenting documents for registration
- Sub Registrars and District Registrars handling valuation
- owners in urban, semi urban and rural areas where apartment projects are registered
The circular was issued because some Sub Registrars had sent proposals for new rates for flat premises, and some District Registrars had fixed such rates, leading to notices for deficit stamp duty and registration fees to flat purchasers.
Main clarification
The circular says Market Value Guidelines rates are fixed for streets in urban areas and for survey numbers in semi urban and rural areas. They are meant for a street, layout or survey number, not for an individual property.
Key points:
- For a newly promoted flat or apartment in a street that already has a street value, the same street value must be followed.
- No new rate should be fixed for a newly formed flat premises in that situation.
- In semi urban or rural areas, if the relevant survey number or numbers already have the same site rate, that site rate must be followed.
- If the relevant survey numbers have different site rates, the highest site rate among those survey numbers must be followed.
- If the relevant survey numbers have agricultural rates, or some have agricultural rate and others have site rate, a new site rate has to be fixed by following the earlier procedure referred to in the circular.
Why flats are treated differently from layouts
The circular explains that a new layout can justify a new rate because part of the land is used for roads, pathways, parks and other common areas, and those costs are added into the plot price. For flats and apartments, the pathway area left out is added in the area of UDS land, so the circular says there would not be an increase in UDS land cost attributable to common areas.
Practical effect
For most apartment registrations where the street value or site rate already exists, registering officers should use that existing value instead of creating a separate higher rate for the flat premises. The circular directs all registration officers to follow this strictly to avoid complaints and hardship to flat purchasers.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
If I am buying a flat on a street that already has a guideline value, can a new higher rate be fixed just for that apartment building?
No. Circular No.2, dated 27.2.2018, says that if a newly promoted flat or apartment is in a street that already has a street value, the same street value should be followed and no new rate should be fixed for that flat premises.
How is UDS value taken in semi urban or rural areas if all the survey numbers have the same site rate?
The existing site rate should be followed. The circular says no new rate needs to be fixed when the concerned survey number or numbers already have the same site rate.
What if an apartment project covers more than one survey number with different site rates?
The highest site rate among the concerned survey numbers should be followed. The circular says this is because each saleable UDS spreads over all the survey numbers.
When can a new site rate still be fixed for a flat or apartment project?
A new site rate has to be fixed if the newly promoted flat is in semi urban or rural areas and the concerned survey numbers have agricultural rates, or some survey numbers have agricultural rate and others have site rate. In that case, the earlier procedure referred to in the circular must be followed.
