Stamp duty on conveyance: what a society should budget for
Societies celebrate the deemed-conveyance order and then discover the process is not finished. The order establishes the entitlement; registration completes the transfer — and registration costs money the society has to have budgeted.
What the society pays
- Stamp duty on the conveyance instrument, assessed on the applicable valuation.
- Registration fees payable at the sub-registrar's office.
- Adjudication costs where the instrument is sent for determination of duty.
Where budgets go wrong
The common error is budgeting for the litigation and not for the instrument. The second is assuming duty already paid by individual members on their own agreements covers the society's conveyance — the instruments are different, and relief where available has to be claimed with proof.
Get the duty assessed early. A society that knows the number can raise it in an orderly way instead of a panicked one.
Once registered, update the property card and land records. An unregistered order and un-mutated records leave the society only part of the way home.
More reading
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Redevelopment agreements: what society members should read before signing
Corpus, carpet area, rent and timelines are the four numbers that decide a redevelopment. The clauses around them decide whether you can enforce them.
Deemed conveyance: how societies claim land when the developer won't
If your developer has withheld conveyance, the law gives your society a route to the land title without them. A step-by-step guide to deemed conveyance.