Que1:  What is stamp duty? Why should it be paid and by when?
Ans1:  It is a tax and must be paid in full and on time. A delay attracts penalty at 2% per month, subject to maximum penalty of 200% of the deficit amount of stamp duty. Documents lodged with the sub-registrar/superintendent of stamps prior to any amnesty scheme attract a lump sum reduced penalty. Documents not properly stamped are not admitted in court as evidence. It is payable before execution of the document or on the day of execution of document or on the next working day. Execution of a document means putting signatures on the instrument by persons party to the document

Que2: Who pays?
Ans2:  In the absence of an agreement to the contrary, the purchaser/transferee has to pay or in case of property exchange, both parties have to bear it equally.
 
Que3:  On what instruments does stamp duty has to be paid?
Ans3:  Instruments include every document by which any right or liability is or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange, cheque, promissory note, bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt (which is charged under Indian Stamp Act, 1899). Except transfer by will (or by original nomination in a co-operative society) all transfer documents including agreements to sell, conveyance deed, gift deed, mortgage deed, exchange deed, deed of partition, power of attorneys, leave and license agreement, agreement of tenancy, lease deeds, power of attorney to sell for consideration etc. have to be properly stamped. When a nominee transfers the flat subsequently in the name of legal heir, such transfer also requires stamp duty.
 
If you have purchased a flat in a co-operative society on or after December 10 1985, you have to pay stamp duty on market value as per the Ready Reckoner, issued every year in January.
 
This is a public document, available in any law bookshop. Market value is the value as worked out as per the Stamp Duty Ready Reckoner or the consideration stated in the instrument, whichever is higher. As per a new amendment in the Income Tax act, market value for the purpose of capital gain tax is the same as the market value for stamp duty payment.

Que4:  How is a flat defined?
Ans4:  A flat means a separate and self-contained set of premises used or intended to be used for residence, or office, or showroom, or shop or go down or for carrying on any industry or business (and includes a garage), the premises forming part of a building and includes an apartment.
 
Que5:  In whose name is the stamp paper required to be purchased?
Ans5:  Stamp papers are to be purchased in the name of one of the parties to the document; otherwise such agreement will be treated as if no stamp paper was used. However, it will not make the agreement invalid and can be enforced in Law if proper duty is paid subsequently. Stamp paper is valid for six months from the date of purchase.

Que6:   What is a revenue stamp?     
Ans6:  It is a tax of Re.1 in the form of amount or value of which exceeds Rs.5,000. Revenue stamp, which should be affixed on receipt for any money or other property, the Is stamp duty payable on the instrument or transaction?
 
It is payable on instruments. If any information essential for working out stamp duty is missing, the valuation officer can call for it. Information such as the Carpet or Built-up area, number of floors in the building, year of construction, name of Division/Village and C.S./C.T.S. number of plot of land, must be recorded in the agreement for quicker response.
 
Que7:  What is the rate of stamp duty?
Ans7:  Stamp duty on non-residential properties whether in a co- operative society or not is at a flat rate of 5% of the market value. Stamp duty on residential flats in a housing society and buildings covered under Article 25(d) of Schedule I of Bombay Stamp Act. 1958, attracts concessional rates depending upon its market value as follows: Upto Rs. 1,00,000 stamp duty is nil Between Rs. 1,00,001 to Rs.2,50,000, it is 0.5% of the value. Between Rs. 2,50,001 to Rs.5,00,000 Stamp duty is Rs. 1,250 + 3% of the value above Rs.2,50,000. Above Rs.5,00,000 stamp duty is Rs.8,750 + 5% of the value above Rs.5,00,000.

Que8: What You Should Do Prior to Land Registration?
Ans8: In real estate laws, the first thing that you are advised to do is to get in touch with a licensed or well known land surveyor. The surveyor can take the exact measurements of the land including its borders. It saves you from a number of troubles later. It is also advisable to contact the Survey Department and obtain a survey sketch of the land but this is not easy to accomplish. Red-tapism in these departments makes it difficult for an ordinary person to get the sketch. However, give it a try. This comes in handy when you want to make a comparison to assure yourself of the accuracy of measurements.

Que9: What are Property Taxes?
Ans9: Real estate laws require you to be aware of property tax. Property tax is calculated on the basis of the value of one’s property. The exact term used for this is “ad valorem.” The appraised or assessed value of the property changes when there is any change in the value of the property. Property taxes are also sometimes assessed using non-ad valorem assessment methods. These methods include fixed amount for every acre, lot or housing unit. In many cases, both real and personal property are taxed by property taxing units. However, lately, the  practice of levying taxes on stocks, bonds, bank accounts and other intangible assets is decreasing.

Que10: What Issues You May Face Regarding the Title Deed?
Ans10: Having the original title deed is essential as per real estate laws in India. Be wary of title deeds where the seller is not be the original owner of the land. Another important safety consideration for buyers is to demand the original copy of the title deed. If the seller produces only the Xerox copy, think twice about whether you want to go ahead with this title deed. Remember, real estate involves huge sums of money and you can be cheated. Be wary of any sellers who do not have an original copy of the title deed. Also, find out if the seller may have taken a mortgage on the original deed. When you get the original deed, consult with a lawyer and get it thoroughly reviewed by him/her. As a buyer, you also have the right to look at the previous deeds, if any, of the land.

Que11: What is the importance of an encumbrance certificate?
Ans11: Real estate laws in India require a buyer to obtain an encumbrance certificate. This is a very important document that certifies that there are no legal dues and complaints associated with the subject property.

As a buyer, it is essential for you to obtain this certificate from the office of the sub registrar, where the deed was registered. To obtain more clarification regarding dues, you can ask for the encumbrance certificate of the past 13 years or even 30 years,

Que12: What Other Particulars should Tax Receipt and Bills be checked for?
Ans12: The following should be checked by you:

Make it a point to ensure that the seller has paid all taxes associated with the property till date. For this, you need to enquire in the government and municipal offices. Also, ask for the recent tax paid receipts from the seller.

Enquire if there is any notice or requisition has been issued to the seller in the past against the property. Confirm that there is no pending notice and everything has been complied with duly.

Inspect the property tax receipt for correct names.

In case the seller does not have a tax receipt, you need to enquire about the original owner of the property at the village office. Don’t forget to take the survey no. of the property with you.

Last but not the least make sure the electricity and water bills have been paid duly by the owner.