Kerala Real Estate Information
Showing posts with label Land Registration. Show all posts
Showing posts with label Land Registration. Show all posts

Friday, May 9, 2008

Land Registration Fare Value Draft published

Updated May 13 2008


Kerala Govt Published Draft for the Fare Value assessment for all areas. Not so surprisingly, the new fare value is not much different than the current value. In simple terms this means the future buyers are not going to pay any higher tax than one would pay today. The details of specific areas are yet to be known.

The information is expected to reach the registartion office in next few weeks. The State government notified the draft containing 15-lakh pages through a Special Gazette early this week.Fair value of land has been proposed for 1,452 villages in the State.

Several aspects have been considered for determining the value. Land in each village has been divided into 15 categories fixed by taking into account factors such as commercial importance; access to National Highway, State Highway and other major roads; facilities for water supply, electricity, transport and communication; and proximity to market, bus stand, hospital and educational institutions. Fundamentally, land across the State has been categorised as dry land, wasteland, wetland and garden land. Earlier, it was classified into just wetland and garden land.

The highest priced area is M.G Road Kochi. The assessed fare value for this area is 10 lakhs / Cent. The lowest is Rs 5000. As for, when this would be in effect is not known. I do not believe that bothers any one as it is going to be pretty much same as today.

For further reading - http://www.hindu.com/pp/2008/05/10/stories/2008051050470300.htm

Tuesday, April 29, 2008

Register Land Purchase Agreement - Kerala New Law

To avoid black money transactions and other under the table deals, Kerala goverment is working on a new bill that would require the land transfer agreement also to be registred. Currently it is a common practice to write agreement for the actual amount of transaction and then register the land at a later time for the minimum required value mandated by the local registration office.
It seems Govt will bring this bill in the next Assembly Session. Another move along with this is to publish the revised land fare value for all most all areas. This is also expected in July.

Saturday, March 22, 2008

Cost of Stamp Paper and Fees : property registration


This is a sample calculation table to find how much would you need to spend , based on present property registration fees and stamp rate , when purchasing a property . This information is provided for understanding and planning purpose only. Though, the numbers provided here are based on recent registartions , it may not be accurate for every place in kerala.

At this time, the rate of stamp duty in panchayat area is
10% plus registration fee and surcharge 2 %. The total is 12%. For the registration in municipal area 12 % plus registration and surcharge fee 2 %. The total is 14 %. For registration within the Corporation area 13.5% is for registration & surcharge fee 2 %. Total is 15.5 %.

You can do your own calculation using this Excel spread sheet..
If you have a google/gmail account use this google url
http://spreadsheets.google.com/ccc?key=pU7ASvIyVxppYUEtlWHI_fA&hl=en
You may download the Excel spread sheet from below link
http://rapidshare.com/files/101655095/Land_Registration_Price_Calculator.xls.html
How to use this calculation to find the price for your transaction
Column B7 :- Enter the total area of land (in cents) in your transaction
Column B8 :- Enter price per cent
Column B12 :- Enter fare value per cent
The total price is shown on Column 15, depending upon if the property is located under panchayat , muncipality or corporation

Saturday, March 1, 2008

NRI Land Registration Procedures

The ever changing rules and regulations on land registration, often confuses NRIs. One of the most common issue is the lack of information about how to buy / sell land without being physically present in Kerala. A regulation change, last year, made it a requirement for the buyer and seller to be present at the registration office for the transaction and affix photo and finger print.

According to some web sites "the NRIs could send the power to his family members or others to get the document registered in their name through a power of attorney , this power attonamy stamp charge is normal for to direct blood relative and for others stamp charge is high, in this case also buyer and seller must produce their thump impression and photo at the time of registration, it can be sent through email or fax "

Following is the information I received from a NRI friend who went through a registration(BUY) last month. A power of attorney was not required for a purchase. In this case NRI was a buyer. To be able to sell , I think it requires to have a power of attorney towards the representative in Kerala, apart from following documents.

NRI buying land without personally appearing

Step 1: Find the fair value / thara vila for the property. Mostly any adhahram ezhuthu vendor or the broker can find this information for you. Your registration price must be above this value.

Step 2: Buy Stamp Duty Paper / Mudra Pathram for the registration price. Stamp paper could be bought from adhahram ezhuthu vendors or local govt treasury.

Step 3: Mail One Stamp Duty Paper (of the highest value is preferred, if there are multiple) to the NRI who is involved.
Step 4: NRI need to paste a PASSPORT SIZE PHOTO on the Stamp Duty Paper and place the LEFT THUMP IMPRESSION (left thump finger print) on the appropriate place. THUMP IMPRESSION must be overlapping the photo and stamp paper.

The sellers photo must be pasted immediately after the logo on the stamp paper
The buyers photo must be pasted immediately after the sellers photo.




Step 5: Attach attested/notarized copies of identity and address proof and documents to prove the NRI status. Identity proof can be passport first page. Foreign Address proof can be employment letter and NRI status proof could be copy of visa. Caution : Double check with the local registration office , what documents do they accept.

Step 6: The NRIs representative can be present with the above stamp paper and documents to execute the registration

There are some details here as well. Kerala govt exemptsNRIs

Though this is from a real experiance, to avoid troubles, It is advisable to double check the process directly with someone in the specific registration office in advance.

There is a risk involved in sending a blank stamp paper(the details are written usualy at the time of registration) with finger print. Some else getting hold of it might cause big troubles and long legal battle. I think the initial rule (requirement for physical presence) was made without enough thinking and later they bend it to accommodate NRIs.

Also it is possible to find this information from a ‘ADHARAM EZHUTHU’ (vendor) agency/individual who has experiance with the specific registration office where the transaction will be registered.

Saturday, February 2, 2008

Proposed Changes in Govt Policy & Rules

hindu.com reports some details about the proposed land policy changes that are under the consideration of kerala government.

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