The article can be found here http://www.hindu.com/pp/2008/01/19/stories/2008011950430100.htm
2 important parts of the proposal that might directly affect the NRIs and individual buyers are 'Fair Value' and 'New Registration System'.
The fair value [lowest land value for a transaction] system as per hindu article
"will be actually helpful as most of the NRIs, who are leading land buyers, can enter into land deals without having to bother about paying money in black. "The other side of it is that, the buyer and seller would end up paying a lot more govt taxes/stamp duty than they do today.
According to the article The 'New Registration System'
will make it compulsory for those involved to appear at the registration office
This rule, could make things impossible for NRIs.. Hopefully they implement it leaving excpetions for NRIs.
One cannot expect these proposals to make any immediate impact on the current market.. The laws will take time to be put in place.
More reading about the proposed changes in land registration
http://keralaletter.blogspot.com/2008/01/initial-response-to-land-policy-draft.html
More reading about Fair Value :
http://www.hindu.com/pp/2006/12/02/stories/2006120200590100.htm
http://www.thomasgeorge.org/2007/07/land-laws-in-kerala.html
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3 comments:
How the fair value fixation will impact land price in cochin and suburb..can we expect a down in price ?
There is already a fair value in each area that is used for registration purpose. With this new value fixation, actually the land value will go up asper the government. But once the govt. fix a higher land value, there will be less transactions / sale in the real estatate as there will be only genuine/real transactions. Right now brokers are a playing a big role in the higher price in the real estate transactions. This is going to be reduced with this rule. Hopefully, price will come down. But Cochin and suburb is always safe due to limited land availability.
John
http://keralasrealestate.blogspot.com/2008/05/land-registration-fare-value-draft.html
Things are not going to be different.
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