Why Transaction Costs Are Your Biggest Pondicherry Property Blind Spot
Most buyers focus only on property price, only to be hit by transaction costs. In Pondicherry, these expenses often add 10-12% to your total cost. Not considering them can lead to loan rejection or depleting savings mid-process. Let’s take a closer look.
Stamp Duty & Registration: The Non-Negotiables
The government charges two essential fees:
- Stamp Duty: As per government guidelines,10% of the higher value, and women pay only 5% of their sale price.
- Registration Fee: 0.5% of the same higher value.
Real Example:
- Property value: ₹50 Lakh (matches guideline value)
- Male buyer: ₹5,00,000 (duty) + ₹25,000 (reg) = ₹5,25,000
- Female buyer: ₹2,50,000 + ₹25,000 = ₹2,75,000
Always check guideline values with the Sub-Registrar Office, undervaluing can lead to penalties.
Broker Commissions: The Standard Squeeze
Brokers usually charge 1-2% of the property value. For a ₹50 Lakh deal, that’s ₹50,000-₹1,00,000. Importantly, this attracts 18% GST, making the cost even higher. Never pay in advance, always pay after registration.
Hidden Charges That Bite Unprepared Buyers
Watch out for these extra fees:
- Legal Verification: ₹5,000-₹15,000 for title checks
- Electronic Stamp Costs: ₹500-₹1,000 for e-stamp paper
- Loan Processing: 0.5% of loan amount (if applicable)
- Municipal Adjustments: Unpaid seller taxes become your liability
Proven Budgeting Tactics
- Run Dual Calculations: Use Puducherry’s online calculator for market vs guideline values
- Leverage Gender Discounts: Women co-owners save lakhs on stamp duty
- Demand Full Disclosure: Sellers must list all costs in writing
The Bottom Line
In Pondicherry, transaction costs aren’t just extra, they’re crucial for your affordability. Ignoring them can make dream properties turn into financial nightmares. Budget wisely, register carefully, and enjoy your Union Territory haven.