The construction contract is registered according to the legal provisions with a stamp and a registration fee of 2 percent on the value of the contract it had. „For the building where the certificate of completion was obtained, the sub-registries insist that the deed of transport or the certificate of sale of UDS in the land also includes the sale of built-up land. The closing deed has nothing to do with the title of the land. According to consistent jurisprudence, it is stipulated that what is transmitted only for registration purposes should be taken into account by citing the judgments rendered in the bench of the Department of the High Court of Madras,“ the letter states and for clarification. The registration of new housing contracts, which has been mandatory since October, is accelerating. To date, more than 400 agreements have been registered, bringing revenues of EUR 1 billion to the government. With clear guidelines and rigorous procedures, officials expect this number to increase in the coming days. Previously, it was not mandatory to register the construction contract when a new apartment was purchased. Buyers recorded only the undivided share of land (UDS) and paid a royalty of 8% of the consideration mentioned in the agreement.

Since 1 October, the Tamil Nadu government has made it mandatory to register a construction contract at the same time as the sale of UDS, after states such as Karnataka. Filers now have to pay 2 per cent of the additional construction costs. Construction costs include apartment construction costs, parking, club fees and electrical panel fees, and connection to water and wastewater. C.H Gopinatha Rao, former national president, Institution of Valuers, welcomed the move and said it would help protect the interests of owners and developers. „When used housing is sold, registration fees depend on the value of the land and land to be built. The UDS is only registered for new dwellings. Today, the sale of old and new homes is almost on an equal footing,“ he added. However, it is also stated that there are no barriers to the registration of a separate construction contract, as provided for in the circular of 28 October 2013. For a 1,000 sqm apartment with 300 sqm of UDS and a price of 40 Lakh, the buyer has so far only paid for the registration of the UDS. If the reference value of the land is Rs,500 per square metre, the registration fee, which amounts to 8 per cent including stamp duty, has been up to rs.