Many lawyers and property buyers try to play around by undervaluing the figure on the property deed only to pay a lesser stamp fee to the government. In some cases, Lawyers also think they know better and advise good, genuine people to place a lower figure on the property deed.
The reality is that the government officials are not fools, they are way more smarter than we think and understand the game better. At the end of the day, it’s the government official (Assessor) that makes the call whether the value is less, too less or just about right on the property deed.
What happens if they find out you have undervalued on the property deed?
Have you ever thought of that?
Chances are that they would make a visit to the property after checking the property deed, do a fresh valuation and then place the figure they think is the value of the property and then issue the stamp fee. For the first LKR 50,000/= it’s 3% and then for the balance amount it’s 2% and on top of that, there is a penalty / surcharge of 15%.
You have to pay that and then they seal the original document / property deed which means you have paid the required stamp duty fee to register the property. This is a very important aspect of purchasing properties and knowing a thing or two about the property deed. Many buyers and some times sellers know nothing about the property deed and that makes it even difficult as they act blindly purely on the advice of the lawyer. Some lawyers in particular will say anything to get you to put the money on the table because if you do that, it’s a sale for them and they get their fees. We not only know this but have experienced this as well.
It is also advisable to use the services of an agency that knows a thing or two about the property deed and how things with the property deed. Mister T is one such agency that has been on the market for quite a long time and know the processes involved in selling and transferring property deeds.
Visit http://www.mistert.lk/ and check out the luxury properties of Mister T
At last! Something clear I can unsedrtand. Thanks!
Good answer back in return of this issue with genuine arguments and telling the whole thing on the topic of that.