When someone says, “This flat is ?50 lakhs,” don’t take that at face value. The actual cost to own the property is more than just the base price. You have to factor in government charges and other hidden costs.
1. Stamp Duty – The Legal Ownership Tax
Stamp duty is a one-time tax you pay to the government when you buy a property.
It’s like paying for a legal certificate to say, “Yes, I own this house.”
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In Tamil Nadu (and many states), stamp duty is 7% of the total agreement value (not just the UDS or base rate).
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It is mandatory, and without paying it, your sale is not legally recognized.
Example:
If your flat is worth ?50 lakhs, stamp duty = ?3.5 lakhs.
2. Registration Charges – Officially Making It Yours
Once you pay stamp duty, you need to register the property under your name in the government’s land/property records.
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In Tamil Nadu, registration charge is 1% of the property value.
Example:
?50 lakh property = ?50,000 registration charges
So far, just these two add ?4 lakhs extra to your budget!
3. Now Comes the Surprise: Hidden Costs!
These aren’t always “hidden,” but they often don’t show up in the price advertisements.
A. GST (Only for Under-Construction Homes)
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For properties still under construction, you have to pay 5% GST.
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Ready-to-move-in homes are exempt from GST.
?50 lakh flat → GST = ?2.5 lakhs extra (only if under construction)
B. Legal Fees and Documentation Charges
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You’ll need a lawyer to verify the property, draft the sale agreement, etc.
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Charges vary, but you can expect anywhere from ?10,000 to ?30,000
C. Maintenance Deposit (Advance Payment)
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Most builders collect 1 or 2 years of maintenance in advance.
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Rate is ?2 to ?5 per sq.ft per month, depending on the project.
1000 sq.ft flat → ?1.2 lakh (?5/sq.ft/month × 24 months)
D. Parking Charges
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This is not always included in the flat cost.
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Covered or stilt parking could cost ?1 to ?3 lakhs, depending on the builder and location.
E. Clubhouse, Generator, & Other Amenities Charges
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One-time payments for amenities like clubhouse, swimming pool, lift, DG backup, etc.
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This could range from ?50,000 to ?2 lakhs
F. Corpus Fund / Sinking Fund
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Builders may collect a corpus fund to cover future major building repairs.
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It’s typically ?1 lakh to ?1.5 lakhs, collected at the time of possession.
Putting It All Together: Total Cost for a ?50 Lakh Flat (Under Construction)
| Component | Amount |
|---|---|
| Base Property Price | 50,00,000 |
| Stamp Duty (7%) | 3,50,000 |
| Registration (1%) | 50,000 |
| GST (5%) | 2,50,000 |
| Legal & Documentation | 20,000 |
| Maintenance (2 Years) | 1,20,000 |
| Parking | 2,00,000 |
| Amenities + Corpus Fund | 1,50,000 |
| Total Approx. Cost | 61.4 Lakhs |
Tips for Buyers in 2025
Always ask for a detailed cost sheet – not just "flat price."
Clarify if the price shown is “all-inclusive” or basic.
Confirm if GST is included (for under-construction units).
Ask for stamp duty waivers (some builders offer during promotions).
Choose TNRERA registered projects to avoid legal issues.
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