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When an individual succeeds financially in his life, the first big step he takes is to buy a property. Purchasing a property is a challenging task and should be carried out carefully since, initially, the buyers are unaware of the values, essential things to check while buying a house, etc. The brokers and dealers take advantage of this unawareness and sell the property at much higher than the circle rates. To solve this problem, the Indian government devised a solution called "Guideline Value". Guideline Value is the minimum price of the property fixed by the state government. It concerns per square foot of land.
It is to be noted that guidance value and market value are not synonymous terms. The market Value isn't equivalent to the guidance value. Guidance value is always the minimum value of the property decided by the local government, and the property can't be sold at a value less than this minimum value. The price on which the property is sold is called market value. Sometimes this market value may be higher than the guideline value (in most cases), while other times, it could be less than the guidelines value (rarely). However, in such situations, the transferee must pay an extra price for the stamp duty and registration deed.
Property Guideline value plays an important role when buying a property. It helps the transferee decide whether he should accept the specific property. It helps to estimate the probable price of the property and whether it fixes in his budget. It helps to calculate the stamp duty, registration, and transfer charges. Also, it protects the buyer from any corrupt practices of the dealers and brokers. It covers the buyer's interest and safeguards the government's interest as it prevents the circulation of black money in real estate. If any property is sold undervalued or overvalued, the registration officer could inform the concerned officials regarding the scam.
Recently, the T.N. government has made many changes in Guidance Value in Tamil Nadu. If you plan to buy a property in Tamil Nadu, you should read this article first to increase your awareness about Tamil Nadu's guideline value.
What is Guideline Value in Chennai for 2023
Tamil Nadu state government has recently changed the Guideline Value in Chennai and other parts of the State. Though the guidance value has been seen, the government has reduced the spike, the stamp duty, and the registration charges rate. The stamp duty and the registration charges depend upon the guidance value only; it seems like the government has tried to balance the total value while transferring a property.
The government changed the guidelines' value to the same rate as in 2012- 2017. As a result, this value has risen 33% in 2023 since last year. The reason behind such a harsh decision by the Tamil Nadu government is to minimize the difference between market value and guidance value. Also, this decision eventually helped raise loans by private sector employees to buy properties.
Though this hike in the guidance value was next to a shock, the government took care of the situation by reducing the stamp duty by 5%, registration fees by 2%, and sale, gifts, and exchange deeds by 2%.
Tamil Nadu's guideline value also depends upon the availability of land. The southern part of India is primarily a peninsula region. Following is the distribution of land in Tamil Nadu:
● The residential area covers 36.63%
● The small crop region covers 33.4%
● 16.55% is surrounded by forest
● 11% by the government
● Large crop regions cover 1.78%
The guideline value is high since the residential area availability is a little less in Tamil Nadu. Hence it is one of the contributing factors in determining the Tamil Nadu guideline value.
How to Find Land Guideline Value in Chennai?
Knowing the guideline value to protect yourself from fraud is very important. It is straightforward to find land government guideline value and find it yourself. A mathematical formula is used to find the property guideline value of land in Chennai. The formula is as follows:
Property Value = Guideline Value * total area of the land
The guideline value should be in ₨/ sq m, and the total area of the land should be calculated in square meters. With the application of this formula, you could determine the land guideline value of a property in Chennai.
For instance, you want to buy a 500 sq m property in the Sis Capetown region of Tamil Nadu, where the guidance value rate set by the government is 22,605. Now to calculate, we would put values in the formula mentioned above.
Property value= 22,605*500 = 11, 302, 500 crores
How to Check Government Guideline Value in Chennai?
Before buying property in Chennai, make sure that you thoroughly check the Tamil Nadu land guideline value from an authentic source. To facilitate this inquiry, the Tamil Nadu government has set up its official website to avoid misleading information online. The link to the website is as follows: https://www.tn.gov.in/service/dept/92539/3932.
To check the property guideline value in Chennai, follow the below-mentioned steps:
STEP 1: Log into the Tamil Nadu state government's official portal, TNREGINET. TNREGINET. is a government website and is helpful for various purposes. Finding guidelines is one of the most attractive features of this website. For this, you must log in to the home page, and then you will have to click on the tab "guideline value". If you can't locate this tab, go to the search bar and type "guideline value," this tab will open there. Click on the tab and fill in the required information.
STEP 2: When you click on the "guideline tab" and fill out the required information, another page will open asking you the specific period for which you want the "guideline value". Select the current period. This step is helpful to know about the current prices and to avoid any kind of confusion regarding the costs as it changes every year.
STEP 3: Now, step 3 is to fill in all the property details for which you seek information about guideline values. It would ask you for information like property value and survey number. Once you have filled out the specific information it seeks, you can select the option of "search" mentioned below. You can also reset it if you want to edit any information. If you find the guidance value in Chennai, then simply say Chennai, and you can access Chennai's guidance value.
This website is also used for other purposes like computing registration charges, stamp duty, transfer charges, etc.
Guideline Value of Land in Chennai Zone Wise
Chennai is the capital of the State of Tamil Nadu, and it is considered one of the fastest-developing cities. Hence, knowing the government guidelines' value in Chennai becomes essential. There are four zones in Chennai, just like any other city in India. Out of these four zones, only two zones, that is North and South zones are essential for our discussion.
The Guideline Prices In Chennai's North Zone Are:
The South Zone Guideline Values in Chennai are:
Latest Update on Guideline Value in Chennai
The effect of inflation is visible in the guideline value of Chennai set by the Tamil Nadu government. It increased the guideline values by 33%, equal to prevailing rates in 2012-2107. However, the reduction in the prices of stamp duty, registration, and transfer charges is a sigh of relief since Tamil Nadu has the highest stamp duty charges. Even after the reduction, the transfer of property in Tamil Nadu is still expensive since the stamp directly depends upon the guidance value.
F.A.Q.'s
Q. What are the other services available on the Tamil Nadu Registration Website?
There are many services available on the Tamil Nadu Registration Website. These services are as follows:
a) It provides for application for encumbrances certificate online.
b) It provides for registering different things like marriage, death, birth, land, chit fund, etc.
c) It provides for the registration of docs online.
d) It also helps to calculate the binding value.
e) It helps to find registered property in Tamil Nadu.
f) It includes the application for a society certificate.
This portal also provides many other miscellaneous services that might be useful to the citizens of Tamil Nadu.
Q. Where can I address queries regarding Guideline Value in Chennai?
There are two methods via which you can seek answers to your doubts regarding Guideline Value in Chennai. Either call on 18001025174 or mail at [email protected].
Q. What determines the Guideline Value of an area in Chennai?
Different factors determine the guideline value, like survey number, street number, and the development near the land. Development is directly proportional to the guidance value; that is higher the development higher the guidance value, and vice versa.
Q. What are the current stamp duty and registration charges in Chennai?
For exchange, gift, and, most importantly, sale, the stamp duty is 7% of the market value of the property, and registration charges are 4% of the market value of the property. Stamp duty is 4% of the mortgage amount, and registration charges are 1%, subject to the mortgage amount of 2,00,000.
About Author
Jatin Dubey
An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.
An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.
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