One of the key terms that any homebuyer should be acquainted with is the “guidance value” of a property. Often confused with the price of a property, the guidance value of a property does not fluctuate or appreciate with time—as is the case with price.
Here’s an overview of what the guidance value of a property is all about.
1. What does the guidance value of a property mean?
The guidance value of a property is defined as the minimum price of the property—typically a residential property—below which the property cannot be duly registered. This is not the same as the price of the property in the market.
2. Who determines the guidance value of a property?
The guidance value of a property is determined by government authorities and declared in the jurisdiction of the sub-registrar’s office. The guidance value is not subject to frequent change or fluctuation.
3. How is the guidance value of a property determined?
The state government ascertains the floor price of a property, based on which the guidance value is determined. The market price of the property is an add-on amount that accounts for the market condition, demand for the property and quality of construction/amenities.
4. What are the advantages of knowing the guidance value of a property?
As a homebuyer, it is useful to find out the guidance value of the property, as you will pay the stamp duty and registration fee based on that amount. This can help cut down the registration cost significantly.
5. How can one find out the guidance value of the property?
There are various sources of information that you can use to find out the guidance value of the residential property. Some of them include:
– Registration and Stamp Duty Department website
– The office of the Sub-Registrar
– Filing an RTI application
– Newspaper announcements
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