Incidental Expenses while selling Real Estate in Mumbai, India
The below article contents are most suited for Selling properties in Mumbai, Thane and Navi Mumbai as the same are based on local laws and market practices.
1.Transfer Fees – Usually the same is Rs.25,000/- and in most cases, the same is equally shared between the Buyer and the Seller unless agreed upon in the manner decided mutually between the buyer and the seller.
The Interesting part here is that the above is pretty common in most of the societies, however, a lot of societies, owing to the lot of expenses they have, they try and request the outgoing member to give a donation to the society, which is a very usual practice in Mumbai, Thane, and Navi Mumbai. This amount can be any amount decided by the Society in the General Body Meeting.
The Second part here, in the absence of the Society, where the Builder/Developer is present, the Developer also can levy transfer fees at his discretion. A lot of developers do intimate you well in advance about this and a lot do not, hence while buying property it is very important to clear the resale transfer fees.
It is been heard in the market, where the property appreciation is more than 100% over recent years, the developers have requested for amounts even up to 5% of the apartment value as Transfer Fees. This is something which the buyer should take care of.
The seller needs to ascertain his capital gains if he falls under Short Term Capital Gains or Long Term Capital Gains.
3.Stamp Duty and Registration
This expense is paid by the New Buyer.