The Chhattisgarh government, under the leadership of Chief Minister Vishnu Deo Sai, has introduced a significant policy reform providing substantial relief to middle-class property buyers. Going forward, property registration fees will be calculated based on the guideline value, even if the actual transaction value exceeds it. This change aims to ease the financial burden on middle-class families relying on bank loans to purchase property.

Key Highlights of the Policy Reform

1. Registration Fees Based on Guideline Value Only:
   Previously, registration fees were calculated on the higher of either the guideline value or the actual transaction value. For instance, if the guideline value of a property was ₹10 lakhs and the sale price was ₹15 lakhs, buyers had to pay 4% registration fees on ₹15 lakhs, amounting to ₹60,000.

   • Under the revised rule, buyers will now pay fees only on the guideline value, saving ₹20,000 in this example, as the fees on ₹10 lakhs would amount to ₹40,000.

2. Encouraging Transparency in Real Estate Transactions:
   The reform promotes transparency by encouraging buyers and sellers to record the actual transaction value in registry papers, reducing instances of undervaluation to avoid higher fees.

3. Improved Loan Accessibility:
   Finance Minister OP Choudhary highlighted that this decision will allow middle-class families to secure higher loans based on the actual transaction value, making property purchases more affordable and accessible.

4. Alignment with Best Practices:
   The decision aligns Chhattisgarh’s policy with Madhya Pradesh, where similar measures have led to increased transparency and real value declarations in property transactions.

Impact on Real Estate Market

• Enhanced Loan Eligibility: Middle-class families often depend on bank loans, which are sanctioned based on the registered value of the property. The new policy ensures that buyers are not penalized with reduced loan amounts due to undervalued registry prices.
• Protection Against Fraud: With accurate values recorded in registry documents, buyers will have legal protection to claim appropriate compensation in case of disputes or fraud.
• Boost to the Real Estate Sector: The reform is expected to instill greater trust in the real estate market by fostering clear and honest transactions.

Addressing Longstanding Challenges

In many cases, properties are sold at prices significantly higher than the guideline value, but buyers underreport the sale price to minimize registration fees. This practice not only affects loan eligibility but also skews property market data. The Chhattisgarh government's initiative is expected to curb this practice and bring more authenticity to the real estate ecosystem.

Statewide Impact

This policy will benefit thousands of middle-class families across the state, especially those dependent on bank financing for their property purchases. It will also serve as a safeguard for buyers by ensuring that the true value of a property is reflected in official records.

The Chhattisgarh government’s decision to reform property registration rules is a progressive step towards ensuring affordability and transparency in the real estate sector. By reducing financial burdens and enhancing trust, the state aims to empower its citizens and stimulate the property market, setting a benchmark for other states to follow.