CHB scraps transfer charges, buyer saves ₹15.7L on ₹1 crore property

At the time of registration of sale deed, in addition to the sale amount, the buyer has to pay stamp duty

In a major relief to the allottees of the Chandigarh Housing Board (CHB) dwelling units, the CHB board of directors in a meeting held here on Thursday decided that the transfer charges, 15% of the consideration amount and stamp duty, will not be applicable in those cases where a freehold CHB dwelling unit is transferred through duly registered sale deed.

“The decision will be applicable in those cases where the original allottee executed a registered Sale-Deed through a General Power of Attorney (GPA).,” said Yashpal Garg, chief executive officer (CEO), CHB. It will save the genuine purchasers from paying considerable amount as Transfer fee just because of technicalities in registration of sale-deed, Garg added.

Welcoming the decision, Rajat Malhotra, general secretary, CRAWFED, said, “It will reduce major burden on the CHB allottees registering their properties. The CHB was charging 15% on the so called profit amount on the allottees who sold their properties through the GPA. This was particularly the case in transfer of property before the conversion of leasehold to freehold properties.”

At the time of registration of sale deed, in addition to the sale amount, the buyer has to pay stamp duty. In the case of the CHB, the purchaser had to pay an additional 15% as transfer charge to the CHB.

“So, for a property priced at ₹1 crore, the purchaser pays ₹1 crore plus ₹5 lakh stamp duty (at 5%). But, for the CHB property transferred through GPA, the purchaser for registering the sale deed had to pay additional ₹15.75 lakh as transfer charges (at 15%),” explains Rajesh Kumar, a city-based real estate consultant. Now with this decision, the buyer in the above quoted cases will not be charged the additional ₹15.75 lakh.

The property experts say that the decision will boost the sagging real estate market in the city. “It is definitely a positive step for the property market in the city. Now, people who were not keen to buy CHB property because of the extra financial burden will come forward,” said Kamal Gupta, president, Chandigarh Property Consultant Welfare Association.

THE GENERAL HOUSE SCHEME STILL ON

The board of directors also decided against shelving the general housing scheme in Sector 53. A revised plan for the scheme will be prepared with modified density and floor area ratio (FAR) parameters.

UT urban planning has twice rejected CHB proposal for increasing the FAR in the project . The increased FAR would have decreased the cost of dwelling units in the project. Only 178 applications were received against the 492 flats on offer in March this year. The scheme offered 3HK flats for as high as ₹1.8 crore, 2BHK flats for ₹1.5 crore and 1BHK flats for ₹95 lakh. The CHB had slashed the proposed rates by 15% to attract more buyers but it did not work.

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CHB TO FOLLOW UT PAYING GUEST POLICY

In the Thursday’s meeting, the board also decided that the CHB would follow the existing paying guest policy of the Chandigarh administration for CHB’s independent houses. However, before its implementation, approval of the UT administration will be obtained.

The CHB had formulated its own paying guest policy and presented the same before the board of directors. But, the directors decided that there should be uniformity in policy in the city. “As per the UT policy, applicant for the paying guest facility needs to submit a completion certificate. For CHB properties, this condition will not be applicable,” said Garg. Also, they will have to register with the CHB secretary and not the UT estate office.

Quotes:

The decision will be applicable in those cases where the original allottee executed a registered sale deed through a general power of attorney (GPA).

Yashpal Garg, chief executive officer, CHB

It will reduce major burden on the CHB allottees registering their properties. The CHB was charging 15% on the so called profit amount on the allottees who sold their properties through the GPA.

Rajat Malhotra, general secretary, CRAWFED