What is ready reckoner rate?

When you decide on buying a property, the next thing you have to do is to improve your knowledge on all real estate trends and real estate market.
It is also necessary for potential buyers in real estate to know and understand various terms and words used in the Chennai real estate. While there are a lot of terms used, ready reckoner rates is something that every buyers should know about. Ready reckoner rates are prices that are regulated and published by the respective state government on residential property, land or commercial property. Every state government revises these rates on an annual basis. Only based on these rates any property buyer will have to pay stamp duty for his purchase. These rates differ from each and every locality.

How do ready reckoner rates affect real estate prices?
Ready reckoner rate is the primary factor that brings in a big change in the real estate prices of any location.  Though these rates are set by the state government, the builders have freedom to charge premium above this ready reckoner rates. But builders are not allowed to sell the property less than the ready reckoner rates. The difference between the selling price and the ready reckoner rates will be a black money transaction.

Whenever the government rises these rates, then obviously the real estate prices will also increase. Also the fees and tax that the builders will have to pay to the government will also increase with ready reckoner rates. So builder will surely impose these rates on buyers thus resulting in increased selling rice of land and apartment for sale in Chennai.  Not just builders and sellers, these rates also affects people who already own a property in Chennai as the tax to pay to the Municipal Corporation also increases with these rates.

How to know the ready reckoner rates?
You can easily know the ready reckoner rates of any particular location through the ready reckoner site. You can also know this rate from the websites of registration and stamp duty department each state. This helps in maintaining a transparency in the real estate prices across the state and the country. You can also get the rates from office of the sub-registrar where the property in transaction has to be registered.

Ready reckoner rates and built-up area
Ready reckoner rates are always connected to built-up area and not with the super built-up area or the carpet area of the flat in Chennai. The highest revenue source of every state government is through the ready reckoner rates (stamp duty registration). The government has insisted all builders to sell the apartments in Chennai on basis of only the carpet area and not the super built-up area. But most of the builders sell their property only on basis of super built-up area. Even when some builders obey the government, they increase the per square feet area.

Always remember to know the ready reckoner rates of all area in Chennai if you are planning to buy an apartment for sale in Chennai. There are also online calculator to calculate the ready reckoner rate and stamp duty value of any property.