You must have heard a lot about these 3 terms and these are three different charges charged at a different stage of the property. To my surprise not many people are aware of these charges so let me put these three charges; property holding charges, transfer charges, and builder transfer charges in simple layman language for you all.
To start off let’s start with property holding and safeguarding charges:
What are a property holding and safeguarding charges?
A builder has a certain timeline for possession of a unit. Say, you have purchased a property from builder X and X has offered to give you possession of the property in Aug 2022 by issuing you a possession letter. But due to certain conditions, you are not available to take possession of the unit in Aug 2022 and you would like to extend it for some time or months.
For this extended time period, builder X is going to charge you property holding and safeguarding charges. Because X has to hold on to its labor who will be doing final finishing work in your flat and X is also safeguarding your property in this period. Usually, builders charge Rs.5 per sq.ft per month.
What is TM (Transfer of Memorandum) or Transfer charges?
You have a ready-to-move-in property with a registry. If you wish to sell off this property then you have to do the TM first in the Noida Authority. Then you will get the application and after that only you can do the sub-lease deed.
Properties in Noida are sold on a leasehold basis for a period of 90 years. Here, the Noida Authority is the owner of the land, and the builder/developer is the lessee/allottee. Therefore, each time a transaction takes place, the buyer needs to pay a lease rent to the authority known as Transfer of Memorandum Charge (TM) or transfer charge.
However, these charges do not apply if you are buying a new residential unit from a builder. Only the resale units attract a transfer charge and the change in the ownership of allotted properties is permissible only after the execution of the lease deed.
In Oct 2021 Noida Authority has reduced the TM charges. Transfer charges vary from area to area and are dependent on the circle rates.
What is a Builder Transfer charges?
This is charged on the under-construction property by the respective builder. If an owner wants to sell his under-construction property then he has to pay builder transfer charges to the builder. This charge varies from builder to builder and in most of the cases builder can also waive off this charge.
My advice for you is that if your builder has committed verbally to you that they will not charge Transfer charges then please take a written note from the builder, that you can show later just in case some dispute/problem arises
I hope this post has helped you in understanding these charges in a better way. You can refer to this link to see TM charges news
