The most recent guideline value set by the state government must be known if you plan to invest in real estate in Tamil Nadu. In this article, we outline the importance, procedures, and more about the property's guideline value in Tamil Nadu.
What Do You Mean by Property Guideline Value?
The minimum price at which a property can be registered, as determined by the state government, is known as the “guideline value.” The Property Guideline Value In Tamil Nadu has important aspects for real estate business.
The registration will be based on the higher value if the sale of a property occurs at a price higher than the guideline value. Moreover, you will be liable for stamp duty and registration fees based on this lower limit if you purchase a property below the guideline value.
Proper documentation is crucial during property transactions to avoid legal disputes. This includes verifying ownership titles, encumbrance certificates, and sale agreements. Ensuring that the property documents are accurate, complete, and compliant with local regulations helps safeguard buyers from potential risks and guarantees a smooth registration process.
Guideline vs Market Value
As was already mentioned, the government determines the guideline value, whereas the seller determines the market value. Both of these values must be present in a perfect location. In India, though, it doesn’t happen very often.
The guideline value is typically much less than the market value. We occasionally find that the market value is higher because of inflation, the seller’s personal interest, and proximity to major cities. The Property Tax Chennai values are set for specific time periods and remain constant in a specific area. The State Government performs the calculations and subsequent updating of the recommended value.
How TNREGINET Guideline Value is Important?
- A guideline’s value is important because it represents the lowest price at which a piece of property can be bought or sold
- As a result, your property will have a minimum guaranteed value when you sell it
- When buying or selling a home, it is a crucial factor
- Guideline values are one of the state’s most significant revenue sources.
- More registrations lead to greater revenue collection
- A property or area that has been developed well has a higher value of a guideline, whereas a property or area that has not been developed well has a lower amount of a guideline
- More registrations translate into a higher revenue collection
- A property or area that has been developed well seems to have a greater guideline value than one that has not been developed well
- Any state’s Patta Chitta online and Registration Department determines the worth of a guideline.
- The registration value is based on a guideline’s value
- Even if you paid less for the property when you bought it, you must still list the sale price as the guideline price
- When a property is bought for more money than the value of a guideline, the transaction is recorded using the market value
- It facilitates avoiding both undervaluation and overvaluation of Real Estate Consultant Services in 2022.
How to Check Guidance Value Online? – tnreginet.gov.in
- On the internet, you can research the worth of a guideline in Chennai.
- The value of a guideline at a location is determined by the street number or survey number of that location
- Additionally, it depends on how the neighborhood evolves
- As was already mentioned, more developed regions place a higher value on guidance. Understand the Property Value in Tamil Nadu Online before Investing in any Real eState Project.
What is TNREGINET?
TNREGINET is the official online portal of the Tamil Nadu Revenue Department for all property-related services in the state. It offers a convenient and transparent platform for citizens to access various services, including:
- Property Registration: Registering marriages, births, deaths, firms, chit funds, and more.
- Property Valuation: Checking property guideline value, building value, and stamp duty.
- Encumbrance Certificate: Obtaining information on any legal claims or restrictions on a property.
- Search and View Services: Looking up property details, land records, and other documents.
- Fees and Payment: Accessing information on registration fees, stamp duty, and online payment options.
Calculating Building Value on TNREGINET
TNREGINET provides a dedicated tool to estimate the building value based on various factors, including:
- Location of the property
- Type of construction
- Age of the building
- Built-up area
- Amenities available
To calculate the building value, you’ll need to enter details like property address, construction type, and built-up area. The portal then displays an estimated value based on the government-approved formula.
Land Registration Fees in Tamil Nadu
Land registration fees in Tamil Nadu depend on the property value and type of transaction. TNREGINET provides a fee calculator tool where you can enter the property value and transaction type to determine the applicable fees. These fees typically include registration charges, stamp duty, and other miscellaneous charges.
Difference between Property Guideline Value and Market Value
The property guideline value set by the government is often lower than the actual market value of the property. This difference can impact various aspects, like:
- Stamp Duty: Stamp duty is calculated based on the guideline value, which could lead to lower taxes compared to the actual market value.
- Loan Eligibility: Banks often consider the guideline value for loan approvals and valuations, potentially affecting the loan amount you can secure.
- Dispute Resolution: In case of property disputes, the guideline value might be used as a reference point for compensation or settlement.
How to Determine a Land’s Guideline Value in Tamil Nadu in 2024?
The department’s website currently has the guideline value/guidance value for ₹2.19 lakh streets and ₹4.46 billion field numbers/subdivision numbers.
- The TNREGINET website’s login page
- Visit the Registration Department’s official website, also known as TNREGINET, to learn the TNREGINET guideline values for each district in Tamil Nadu for 2021.
- Guideline Value is one of the tabs on the TNREGINET portal. Enter the information here.
- It should be noted that the website offers content in both Tamil and English. If you prefer a different language when searching for TNREGINET guideline values, you can change it.
- Enter your zone, village, and survey number in this dialogue box.
- Submit the form at this point, and then wait for the value for an acre and hectare to appear.
- You can also search by street name using the options on the left side.
- Click on Search and type the entire street name or a portion of it.
- By doing so, information about the guideline value, including the street name, sub-registrar office, guideline value, and classification, will be displayed.
- The guideline value can also be found by category, such as commercial, residential, industrial, and agricultural.
How is the Guidance Value Determined?
- The Department of Stamps and Registration determines the guideline value for properties,
- while the Inspector General of Registration oversees the registration department of the Tamil Nadu government.
- Real estate taxes, stamp duties, and registration fees generate significant revenue for the state government.
- Additionally, the government regularly updates the guideline value to align it with current market rates,
- aiming to discourage the use of black money and ensure that revenue is not negatively affected
Chennai Guideline Value has Recently Undergone an Update
- The government increases the value of the recommendation each year
- The Tamil Nadu government has decreased the value of a guideline in Chennai by 33.33 percent
- The registration fee has increased from 1 percent to 4 percent. Additionally, the stamp duty was raised to 8%
- The cost of buying real estate will therefore increase, favouring the seller rather than the buyer. There are many different kinds of regulations in Chennai.
- It costs between ₹40 and ₹23,500 per square foot
- At ₹23,500 per square foot, Chennai is the first city in Tamil Nadu to have the highest value of a guideline
- With 31.7 basis points of all the streets in Tamil Nadu, Chennai is the city with the most streets
- In order to help the state’s urban poor, the Tamil Nadu government recently established a state shelter fund
- Properties with an area larger than 3,000 square meters must pay shelter fees ranging from 1% to 3% of the property’s value of a guideline per square meter.
Conclusion
The guideline value is the lowest price at which a property can be registered, as determined by the state government. The registration will be based on the higher price if a property is sold for more money than the suggested price.
You will be required to pay stamp duty and registration fees based on the amount you pay if you purchase a property for less than the guideline value. If you are looking for the best legal advisor to take you through the process, it’s great to connect with Vakilsearch, India’s number one legal service provider and the right legal companion for any legal registration paperwork.
TNREGINET FAQs
How to check Tamil Nadu land guideline value?
There are two ways to check the land guideline value in Tamil Nadu: a)
Online:
✷ Visit the TNREGINET portal
✷ Click on the Guide Value tab.
✷ Enter the details of the land, such as district, village, street name, or survey number.
✷ Click on Search and the guideline value will be displayed. b)
Offline:
✷ Visit the office of the Sub-Registrar of the area where the land is located.
✷ Provide the details of the land to the officials and they can look up the guideline value for you.
What is the guideline value in Chennai 2023?
Unfortunately, I don't have access to real-time data to provide specific guideline values for Chennai in 2023. However, using the methods mentioned above, you can easily find the guideline value for any area in Tamil Nadu.
How is guideline value calculated?
The guideline value is calculated by the government based on various factors, including:
Location of the land
Type of land (residential, commercial, agricultural)
Infrastructure and amenities available in the area
Recent property transactions in the area
Market trends
The government revises the guideline value periodically, typically every year or two.
Is fair value higher than market value?
Fair value and market value are not necessarily the same. Fair value is the price a willing buyer would pay and a willing seller would accept in an arm's length transaction, without any pressure or duress. Market value, on the other hand, is the price at which a property would likely sell in the current market conditions. In some cases, fair value can be higher than market value, especially if the property has unique features or is located in a highly desirable area. However, in most cases, fair value and market value are fairly close.
How do you calculate fair market value?
There are several methods to calculate fair market value, including:
Comparable sales method: This method compares the property to similar properties that have recently sold in the same area.
Income approach: This method estimates the potential income that the property could generate and then capitalizes that income to arrive at a value.
Cost approach: This method estimates the cost of replacing the property with a similar one and then deducts depreciation for its age and condition. A qualified appraiser can use these methods and other factors to arrive at a fair market value for a property.
Is the selling price equal to fair value?
No, the selling price is not always equal to the fair market value. The selling price can be higher or lower than the fair market value depending on several factors, such as:
Negotiating skills of the buyer and seller
Urgency to sell or buy
Market conditions
Presence of any defects or issues with the property It's important to remember that the fair market value is just an estimate, and the actual selling price may be different.
What is the formula for fair market value?
There is no single formula for fair market value, as it depends on various factors and methods used. However, the most common formula used in the comparable sales method is: Fair Market Value = (Comparable Sales Price 1 + Comparable Sales Price 2 + ...) / Number of Comparable Sales This formula simply averages the selling prices of similar properties to arrive at an estimated fair market value for the subject property.
