Homebuyers registering first-sale apartments and villas in Tamil Nadu will receive significant financial relief following a new order issued by the state government. The government has permitted stamp duty and registration fees already paid on construction agreements to be set off against the total value of land and building at the time of registering the final sale deed. Under this order, buyers registering composite sale deeds—which include both the undivided share of land and the constructed building—for the first sale of apartments, flats, villas, row houses, or villaments will be eligible for the benefit. The set-off applies where the buyer had previously paid stamp duty and registration fees on a construction agreement for the same superstructure. The relief is applicable to composite sale deeds registered on or after December 1, 2023, provided the related construction agreement was registered on or before November 30, 2023. This ensures that buyers are not required to pay stamp duty and registration fees twice for the same property component. The move follows the state’s earlier decision to allow the registration of composite sale deeds in compliance with the Real Estate (Regulation and Development) Act, 2016. While that policy helped bring clarity and transparency to first-sale property registrations, it also led to concerns among buyers who had already paid stamp duty and registration charges on separate construction agreements prior to the change. These buyers faced the prospect of double payment when registering the final sale deed. According to officials from the registration department, the newly approved mechanism addresses this issue by enabling an adjustment of previously paid charges. The government approved the set-off for stamp duty under the Indian Stamp Act, 1899, and for registration fees under the Registration Act, 1908. The inspector general of registration has instructed all registering officers, district registrars, and senior registration officials to implement the order with immediate effect. Authorities have also been directed to ensure uniform application of the policy across all districts in the state. However, real estate developers have expressed mixed reactions, stating that the relief has come later than expected. They pointed out that many homebuyers who paid stamp duty and registration fees on construction agreements several years ago may have already completed their property registrations due to loan repayment obligations. As a result, those buyers may not be able to benefit from the new provision. Developers have argued that the measure should have been introduced at the time the composite value registration system was first implemented. Despite these concerns, the order is expected to benefit a large number of homebuyers by reducing the overall cost of first-sale property registrations and preventing duplication of statutory charges going forward.

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