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Property owners in Tamil Nadu may face higher costs for redeveloping and developing their properties as the state government revises the registration charges for transferring power of attorney to non-family members. Effective from July 10, the new policy imposes a 1% charge based on the property's market value, replacing the previous flat rate of Rs 10,000.
The state registration department has decided to increase the registration fees and stamp duty for 20 services provided under section 78 of the Registration Act 1908. This move comes after a gap of 20 years and includes services such as register searches, document copies, and safe custody and return of documents.
Officials from the registration department explained that the revision was prompted by concerns over power of attorney misuse, particularly in land grabbing cases. The government aims to discourage such practices and boost sales by landowners. However, real estate developers have expressed apprehension about the increased registration fees, stating that it may burden projects intended for joint development or redevelopment.
The state registration department has also made adjustments to other charges. Private attendance by sub-registrars at residences, a service often utilized by VIPs and elderly individuals unable to visit registration offices, will now cost Rs 1,000 instead of the previous Rs 200. Additionally, the fee for mortgage receipt documents has increased from Rs 20 to Rs 200. Furthermore, the registration charges and stamp duty for partition, family settlement, and release of documents have been raised from Rs 4,000 to Rs 10,000 and from Rs 25,000 to Rs 40,000, respectively.
An official from the registration department justified the fee hike by pointing out that the rates had remained unchanged for two decades. They also emphasized the need to bolster the revenue of the registration department. As property owners in Tamil Nadu grapple with the increased registration charges, stakeholders are voicing concerns about the potential impact on property transactions and urging the government to reconsider the revised fees.
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