Circular No. 40164/23/2016, Building Field Inspection Guidelines, 2018
The Chief Revenue Controlling Officer and Inspector General of Registration, Registration Department, issued Circular No. 40164/23/2016 dated 5 April 2018 to guide registration officials on inspecting and valuing buildings transferred with land. It identifies when inspections are required, which officer must value the building, and when an approved building plan or the type of family document removes the need for inspection.
What the circular governs
Circular No. 40164/23/2016 dated 5 April 2018, issued by the Chief Revenue Controlling Officer and Inspector General of Registration, Registration Department, governs field inspection and valuation of buildings when ownership of land and a building is transferred through a sale or another transfer document. The guidance is directed to registration officials, including Sub-Registrars, District Registrars and senior departmental officers.
When a building may be inspected
A building field inspection is used to calculate the building value when a transfer document covers both a plot and a building.
The Registration Department assigns valuation work as follows:
- An Assistant Executive Engineer values an ordinary building when the value entered by the registering officer in Form 1B exceeds Rs.25 lakh.
- An Assistant Executive Engineer also values a building when the document parties state a building value exceeding Rs.25 lakh.
- Special buildings, including theatres, mills and factories, are valued by an Assistant Executive Engineer.
- Buildings valued below Rs.25 lakh are inspected and valued by the Sub-Registrar, subject to the stated inspection exemptions.
Cases where inspection is not required
Circular No. 40164/23/2016 instructs Sub-Registrars to follow the exemptions contained in G.O.Ms.No.114 of the Commercial Taxes and Registration Department (J1), dated 16 June 2010.
- No field inspection is required for buildings valued below Rs.1,00,000 in village and town panchayat areas.
- No field inspection is required for buildings valued below Rs.2,00,000 in municipal and corporation areas.
- No field inspection is required when an approved building plan from the Town Planning Authorities or a local body is submitted during registration.
Where an approved plan is submitted, the building valuation must be prepared using the measurements shown in that plan. If Form 1(C) shows undervaluation, the deficit stamp duty, registration fee and compounding fee must be collected before the document is returned.
Family documents
Circular No. 40164/23/2016 prohibits building field inspection for family settlements, partitions and releases classifiable under section 55(a) of the Indian Stamp Act when the document party has already paid the prescribed maximum stamp duty and registration fee. The instruction states that inspection must not be conducted in such cases for any reason.
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Common questions
Will every sale of land with a building require a field inspection?
No. Inspection is not required in the value categories specified for panchayat, municipal and corporation areas, or when an approved building plan from the planning authority or local body is submitted.
Who values a building worth more than Rs.25 lakh?
An Assistant Executive Engineer values an ordinary building when the value in Form 1B exceeds Rs.25 lakh or when the document parties declare a building value exceeding Rs.25 lakh.
Can an approved building plan avoid a physical inspection?
Yes. If an approved plan from the Town Planning Authorities or a local body is filed during registration, no field inspection is required, and valuation must use the measurements in that plan.
Is inspection allowed for a family settlement or partition?
No building field inspection may be conducted for the listed family settlements, partitions and qualifying releases when the prescribed maximum stamp duty and registration fee have been paid.