What is Guidance Value and How Does That Work?

Sujan Afi S

This article is written for people who are planning to buy properties or at least interested in purchasing properties in the near future. You may hear the term ‘guidance value’ when you are buying a real estate property such as land or a building.

While you are going to buy a property, you have to pay stamp duty, registration fees, etc. All these largely depends on the amount of guidance value.

So, you need to know about guidance value. In this blog, we are going to discuss all guidance values.

What is Guidance Value?

In very simple words ‘guidance value’ refers to the minimum value of a property like land, residential building, flat, etc. below which no property transaction can be accomplished. For registration, guidance value is very important because below the amount of guidance value no property can be registered in the sub registrar’s office. 

Guidance value is the estimated value of the property. Guidance value is also known as circle rate or ready reckoner in many states. 

The overall property price also depends on guidance value. So, if there is any change in guidance value then the overall property price will also be changed. Guidance value is considered as one of the major sources of generating revenue for state government.

It is important to note that the guidance value is the minimum value of a property required for registration but it is not the sell value of a property. The sell value of a property is normally higher than the guidance value of that property.

How Does Guidance Value Work?

You can’t buy a property below guidance value. If the market value is less and guidance value is more then you require to register your property at the rate of guidance value. But if the market value is higher than the guidance value then you may register your property at any amount over and above guidance value.

You need to register your property at a price that is higher than the guidance value. You should also pay the stamp duty for the final approval of a home loan.

Why Guidance Value is Important for You?

If you are a buyer of a property or an investor then guidance value is very important for you because based on the amount of guidance value you are required to pay stamp duty and registration fees of the property. Developers won’t be able to cheat you financially for guidance value and you will be able to cut down the overall registration cost significantly.

How Can You Know the Guidance Value of a Property?

There are several sources for knowing the guidance value of a property, such as

  • Registration and Stamp Duty Department website
  • The office of the Sub-Registrar
  • Filing an RTI application
  • Newspaper announcements

In Summary

Guidance value is very important for property buyers or investors. You need to know the amount of guidance value of a property before going to buy a property because the amount of stamp duty and registration fees depend on it.

The guidance value also changes with the changes of locality and property types so you should be conscious about that too.

I hope that I have been able to explain to you about guidance value. Nevertheless, feel free to drop your queries and concerns at info@roodland.com.


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