No, a home loan does not cover stamp duty and registration charges.
These charges must be borne by the purchaser and are not included in the home loan amount sanctioned by financial institutions. Below is a detailed breakdown of the costs involved:
- Sale Agreement Adjudication
The Sale Agreement is a key component of the home loan documentation process. It must be adjudicated and submitted to the bank for the loan to be processed.
In Karnataka, the adjudication fee is 0.5% of the consideration value.
Example:
If the purchase price of a property is ₹1.28 crore:
Adjudication Fee = ₹1.28 Cr × 0.5% = ₹64,000
Sale Agreement adjudication looks like image below
Note: The adjudication fee paid is adjusted at the time of executing the Sale Deed.
- Sale Deed Registration
Sale Deed Registration charges vary across states, as they fall under the jurisdiction of the respective State Government. The charges are calculated based on either the consideration value or the guidance value, whichever is higher.
In Bengaluru, the applicable charges are as follows:
- Stamp Duty & Surcharge: 5.1%
- Registration Fee: 1%
- Cess: 0.5%
- Scanning Charges: ₹35 per page
- MODT Registration (Memorandum of Deposit of Title Deed)
MODT is a legal document through which the borrower acknowledges that the property’s title documents have been deposited with the bank in exchange for a home loan. These documents include the registered Sale Deed.
This process usually occurs immediately after the Sale Deed registration, at the sub-registrar’s office.
MODT charges are based on the loan sanction amount and include:
- Stamp Duty: 0.5%
- Registration Fee: 0.1%
- Scanning Fee: ₹35 per page
The registered MODT looks like image below
Our Services
We offer comprehensive assistance with:
- Sale Agreement Adjudication
- Deed Registration
- MODT Registration
To avail of our services, please contact us at pgnproperties@gmail.com or WhatsApp us at +91-97424 79020.