How To Buy Property In Kerala? / Procedure For Buying Property In Kerala
Buying landed property is a complex process involving many documents, and if due diligence is not done before the registration process, one would be buying trouble also. This write-up How to buy property in Kerala, describes various steps involved in the process, both for residents and non-residents.
How To Buy Property In Kerala
Land has become a scarce commodity in Kerala. Keralites generally prefer to build their houses on a plot of land, rather than going for apartments. In cities, the flat culture is catching up, but it is yet to extend its tentacles to rural Kerala. Compared to other Indian states, though industrially backward, in other parameters like education, healthcare, rural electrification, and other basic amenities for human life, Kerala is far ahead of others. Rural kerala is dotted with schools, hospitals, banks, and government offices and shrines of various faiths, and also offers road access to various main highways. Such a landscape naturally drives up land prices.
Buying land is a common transaction in kerala, for both domicile purpose and for investment purpose. What are the necessary steps involved in buying land in Kerala? What are the necessary documents? There are a lot of pitfalls involved in land registration affair. This calls for extreme caution and meticulous scrutiny of documents before effecting the transaction.Land Registration Procedure For Residents
First Step
First step always is to consult a good advocate or a knowledgeable authority, and make him inspect the documents of the property that one is planning to buy. The expenses incurred here is well spent because this can save you a lot of trouble in future. If the documents are not clear, no bank will lend on that property, and when the buyer tries to resell the land, there will be hurdles in the way.Important documents
• Documents relevant to the Land / Project / Building / Apartment
• Documents relating to the Premises
• Stamp Duty and RegistrationConveyance Deed or Sales Deed
This is a deed document that transfers the ownership of the property from the seller to the buyer . This will help the buyer identify the owner of the land on which the apartment or flat that is being bought is located. 7/12 Extract
This document is issued by a competent authority, and contains such details like survey number, area and date when the current owner acquired the property.Index II
This document is issued by a Sub Registrar, and has the history of the sellers and buyers of the property so far.Title Certificate
Issued by an advocate after inspecting the title of the property intended for purchase. This document will specify whether the property is unencumbered or not, and is suitable for purchase. History of the title deed over a period of 30 years is attached with the Agreement for Sale by the developer or seller. If this report is not among the documents, insist on it. Details regarding whether or not there is any existing mortgage, litigation, condition or claim will be mentioned in this report.
It is important that services of an advocate is sought before going ahead with the registration procedure.NRI Land Registration Procedure
NRI land registration is a touchy area as rules keep changing very often. The major problem faces by NRIs is that they may not be physically present on the spot to carry out the due diligence. A new rule (rule 30) makes it mandatory for resident buyers and sellers to be present at the Registrar's office during the registration procedure. Photo and finger print are also required. But NRIs sought exemption from this as this would entail problems for them.
NRIs can authorize a power of attorney to carry out the transaction. In such cases, stamp duty is normal for blood relatives and higher for others. In such cases also, thumb impression and photo of the buyer and seller is required at the time of registration. It can be sent through fax or email. But this system has its dangers. There is no way to verify whether the thumb impression or the photo is that of the real buyer or seller. Because of this, it is not advisable to take this route for land registration. More information is required on this matter. So please consult relevant authorities before undertaking such transactions.When NRIs are not present
1. Find the tharavila or fair value of the property. Inquire with a document writer (Adharam ezhuthukaran). Property should e registered above this price.
2. Buy stamp paper for the necessary amount from a vendor.
3. Mail the stamp paper of highest denomination to the NRI
4. NRI must paste a recent photograph (PP size) on the stamp paper, and put his left thumb impression on the photo in such a manner that the impression overlaps into the stamp paper.
5. Attach necessary documents to prove NRI status. The documents include front page of the passport, employment letter for address proof, and a copy of the visa as proof of NRI status. Visa might need attestation. Please check with the necessary authorities and ascertain this.
6. NRI representative must present with all these documents at the Registrar's office.
7. Please check with a document writer or knowledgeable authorities before embarking on the actual registration process.
8. The following link will provide useful information.
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