Is it important to register a under construction property?

Q: Hi, I’m planning to buy a property in thane, this property is for investment purpose and I would like to sell it after 2-3 years. The first installment and down payment is self-funded. I have the allotment letter from the builder but I am not sure if I should go for registration. Advice

Jerome Fernandez, Mumbai

21st February 2013

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Replies (4)

I believe in good deeds!! The downside of not registering a property is there is no way you will know if developer sells the flat to someone else or not.. Also, each year stamp duty, service tax, etc is going up resulting in the cost for the same going up as u delay registration. Why take chances with hard earned money by not registering the property in u/c stage??

Ashish Sharma, Mumbai

27th February 2013

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Allotment letter is Agreement between you and builder. As each year, property rates are increasing, directly affecting the stamp duty, service tax and so on, due to which registration is needed..

Ramesk Polekar, Mumbai

26th February 2013

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I agree with whatever Sandeep said.. Also, one more added advantage is that when you want to exit the project after 1-2 years then the deal and the transaction can be completed directly through transfer of allotment. Exit clause basically depends on the lock-in period and certain terms of Builder that you need to clear. Also, ask for draft of Allotment letter and go through the points in detail to check whether all the relevant points are mentioned.

Ravi Waghmare, Mumbai

26th February 2013

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Hi Jerome, the property that you have booked is for investment purpose or self use?? If for investment purpose, then you can only go for the Allotment Letter as provided.. As for registering the property, you need to spend much for Stamp duty /Registration and Vat which will be approx 6.5 lakh if the agreement value is of 1 cr.

Sandeep Mhatre, Mumbai

26th February 2013

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