PANAJI
A government notification proposing to levy a fee of 4 per cent of the market value of an apartment or plot in a housing society at the time of its transfer between two parties except when the parties are from the same family has raised concerns over possible increase in cost of housing in the State.
Sources in the real estate industry said the notification proposing the levy of the fee was issued in June and had called for objections and suggestions but there is ambiguity whether the proposal has now become law.
The notification will affect second sale of apartments (flats) or plots in housing societies which takes effect by transfer of the share held by the owner to the prospective buyer.
Such transactions, apart from the usual stamp duties, entailed payment of an additional 1 per cent of the market value of the apartment or plot to the Housing Society. With this notification, the government has proposed payment of 4 per cent of the market value to the Housing Society and an additional 4 per cent to the government.
The new levy of a 4 per cent fee to the government as well as another 4 per cent to the Housing society is expected to spike the already high property prices in the second hand market, say sources in the real estate industry.
As against the 6-8 per cent payable for such second sale of flats or plots in housing societies, the new proposal if and when it is given effect by the State government will entail up to 15 per cent of the property's market value in fees to the society and the government.
There is however no clarity yet whether the State government has finalised its decision to give the proposal effect after considering the objections and suggestions it received in the 15-day period after the notification was issued back in June this year.
The proposal, however, exempts payment of the 8 per cent fee (4 per cent each to the government and the housing society) when the transfer of the share certificate pertaining to a flat or plot in the housing society is being done to a family member, according to the June notification.
