Cost of registering property in Haryana up from Dec 1: here’s what to know

In Haryana, a fee at the rate of 7% of the collector rate is levied at the time of registration of a property. The rate is 5% if the property is registered in favour of a woman.

Collector rates were introduced in Haryana from the 1986-87 financial year in order to check undervaluation of properties and the consequent loss of revenue for the state.

How are collector rates fixed?

Deputy commissioners constitute evaluation committees comprising officers from the district, including the sub divisional magistrate (SDM), tehsildar, naib tehsildar, and the administrator of the civic body concerned, to fix the collector rates for urban and rural properties. This committee talks to local people and looks into various aspects of the area concerned before determining the collector rate for that area.

Rates for agricultural land are determined per acre; those for residential or commercial properties are fixed per square yard.

The rates are fixed keeping in view various factors – for example, whether the property is in an urban area, whether it is on residential land, or on rural land close to a town.

Higher collector rates would be fixed for more valuable land, such as land near national and state highways. Irrigated and unirrigated agricultural land would have different rates.

Land near commercial sites; educational institutions; hospitals; bus stands or railway stations; an administrative secretariat/ judicial complex would have higher collector rates, as would land in a major market or in urban estates.

How much revenue does the government earn by fixing collector rates?

Registration fee is among the biggest sources of government revenue in Haryana. The state government earned Rs 12,300 crore under this head in 2023-24. With the increases from December 1, the government expects revenues to cross Rs 15,000 crore in 2024-25.

With 48%, Gurgaon district is the biggest contributor of revenue from stamp duty and registration of properties. The other major contributors are Faridabad (10%), Sonipat (5%), Karnal (4%), Panchkula (3.4%), Hisar (3.1%), and Panipat and Jhajjar (3% each), officials said.

Will the increase in collector rates lead to an increase in property prices?

Government officials said an increase in collector rates does not have a bearing on market prices of property. However, for the buyer, a higher collector rate translates into a higher registration fee, which increases the overall cost of acquisition.

Jagdeep Attri, a former president of the Panchkula Property Dealers’ Association, said: “The increased collector rates will discourage buyers and impact the market.

Officials said an increase in collector rates is necessary to align with actual prices of property, especially in the urban areas.