Buying a house in India is one of the most exciting milestones in life.
But it’s also one of the most financially complex.
You may have budgeted for the property’s base price, but that’s just the beginning.
From stamp duty to registration, GST, and even society move-in charges, the total cost can balloon fast — unless you’re prepared.
Let’s break it all down so you know exactly what to expect before you sign on the dotted line.
🧾 1. Stamp Duty – The Big One
Stamp duty is a government tax that must be paid to register the property in your name.
It’s calculated as a percentage of the property’s market or agreement value, whichever is higher.
💸 Key points:
- Ranges between 4% to 7% depending on the state
- Some states offer concessions for women buyers
- Must be paid before registration
📍 Examples:
- Maharashtra (Metro cities): ~6%
- Karnataka (Bangalore): 3% to 5%
- Delhi: 4% for women, 6% for men
This cost alone can run into lakhs of rupees.
📝 2. Registration Charges
Apart from stamp duty, you also have to pay a registration fee for officially recording the property in the government’s records.
📌 Typical Charges:
- Usually 1% of the sale value
- Paid to the Sub-Registrar Office (SRO)
For example, if your flat is worth ₹50 lakhs, registration fees could be ₹50,000.
🏗️ 3. Goods and Services Tax (GST)
If you’re buying an under-construction property, GST is applicable.
Ready-to-move-in homes are exempt from GST.
🔍 GST Rates:
- 1% GST on affordable housing
- 5% GST on non-affordable housing
- Calculated on the base cost excluding land value
Note: If you’re buying a resale property or completed apartment with occupancy certificate, GST does not apply.
🧑💼 4. Legal Fees
Hiring a property lawyer isn’t just a formality — it’s a critical safeguard against fraud, defective titles, or legal disputes.
Depending on the property type, location, and document history, legal charges vary widely.
⚖️ What legal work typically includes:
- Title verification and tracing ownership history
- Checking sale deeds, khata, EC, mutation, conversion, RTC, RERA registration
- Spotting red flags like encumbrances, litigation, or missing link documents
- Drafting the sale agreement and final sale deed
- Advising on legal risk and compliance
💰 Realistic cost range:
- Basic title verification: starts around ₹15,000+
- Comprehensive legal opinion (including tracing and written certification): ₹25,000–₹50,000+
- For complex or high-value properties, or where parties involve NRIs, institutions, or HUFs — fees may exceed ₹1 lakh
📌 There’s no one-size-fits-all pricing. Fees depend on the value, nature of title, and depth of opinion required.
Pro Tip: Always get a detailed written opinion, especially when dealing with resale property, inherited land, or converted agricultural plots.
💼 5. Home Loan Processing Charges
If you’re taking a loan, your lender will charge:
- Processing fees: 0.25% to 1% of the loan amount
- Legal & valuation charges
- Technical inspection fee
Sometimes banks also charge document handling or insurance premiums bundled into the loan.
Negotiate this upfront.
🏢 6. Society Maintenance & Advance Charges
Once you get possession, you’ll often be asked to pay:
- Advance maintenance (6 to 24 months upfront)
- Corpus fund (one-time contribution for society upkeep)
- Clubhouse or amenities fee
- Move-in charges
💡 These can add ₹50,000 to ₹2,00,000 or more, depending on the project and city.
Ask your builder or seller to give you a break-up before signing.
🅿️ 7. Parking Charges
Parking is rarely “free” in India — even if it’s within the apartment complex.
Types of parking costs:
- Open parking
- Stilt/covered parking
- Basement parking
Charges are either:
- Bundled with the flat
- Sold separately (which may not be legal in all states, as per RERA)
- Or charged as an extra line item
Confirm allocation and ownership terms clearly.
🔌 8. Utility Connection Charges
You’ll often have to pay for:
- Electricity meter installation
- Water connection
- Sewage & drainage connection fees
- Gas pipeline connection
Each utility may charge between ₹5,000 to ₹25,000.
Builders sometimes include this in the final settlement, sometimes not.
🧾 9. Brokerage / Agent Commission
If you used a broker or property agent, you’ll be charged:
- Typically 1% to 2% of property value
- Paid by buyer, seller, or both depending on region and agreement
💡 Tip: Always have a written agreement with your agent on commission before proceeding.
🪑 10. Interior Advance / Customisation Costs
In some builder projects, you may be asked to:
- Pay for modular kitchen installation
- Choose custom tiles, wardrobe finish, or electrical fittings
- Opt for interior décor packages
These can quickly add ₹1–5 lakhs to your budget.
Get clarity in writing before committing.
🧾 11. Miscellaneous Charges You Might Overlook
Here’s a quick list of additional costs that often catch buyers by surprise:
- Document notarization charges
- Franking charges (for sale agreements, especially in Karnataka & Maharashtra)
- Property tax dues from the previous owner
- Mutation fees for name transfer in revenue records
- Bank locker fees for storing original docs
- Home insurance premiums
🗺️ Variation in Costs Across States & Cities
India doesn’t have a uniform property cost structure.
Everything — from stamp duty to registration to utility setup — varies based on location.
Example comparison:
| City | Stamp Duty | Registration Fee |
| Mumbai | 6% | 1% |
| Bangalore | 3–5% | 1% |
| Chennai | 7% | 1% |
| Delhi | 4–6% | 1% |
This is why location-specific legal advice is critical before closing any deal.
💡 Tips to Avoid Getting Shocked by Hidden Charges
- Ask for a full break-up of costs from your seller or builder
- Read the sale agreement carefully — especially annexures
- Hire a lawyer to cross-check cost heads
- Negotiate what’s truly optional (e.g. interiors, parking)
- Set aside 8%–10% extra over the basic price to cover hidden costs
- Don’t rely on verbal promises — insist on written confirmations
📞 Buying a House? Let Us Help You Avoid Hidden Traps
If you’re planning to buy property in India, don’t let hidden charges catch you off guard.
Our experienced legal team can:
✅ Verify all property documents
✅ Review sale agreements and cost break-ups
✅ Ensure you’re not overpaying stamp duty or registration fees
✅ Draft legally sound deeds that protect your interests
📧 Email: ranjinijayaram@rjpropertylaw.com
📱 Phone: +91 80884 17193
🌐 Website: www.rjpropertylaw.com
Let us help you make your home buying journey smooth, safe, and fully transparent.
Reach out today before you sign!