The real estate business in Kerala is booming and so is many frauds and people are finding it hard to understand how the whole process of registering or owning a property is. Studies have shown that there are many flats & apartments projects launched in the capital city, Trivandrum, but the sale had effected by a small margin due to the increase of frauds, or rather less clarity on the whole process.
1 Property identification.
The main step before purchasing a property is the identifying the correct property on the basis of
location and range of the budget. After that negotiate the cost of the property, payment mode and terms with the seller of
the property.
2 Legal perspective.
After finalizing terms with seller it is very important to meet a lawyer. This will the buyer to obtain a legal title report for the property.
The buyer can conduct research on property documents with the help of a lawyer in order to check everything is in proper
order.It takes about 3 to 5 days to prepare and submit title report.
3 Getting encumbrance certificate.
The encumbrance certificate is a very important as it proves that the property is free from loans, leases, unpaid debts, etc.
The encumbrance certificate is issued by the Sub-Registrar’s office after verification of the relevant property documents.
The buyer has to get the encumbrance certificate (for a period of at least 30 years) before getting into an agreement for the sale with the seller.
4 Verification of the revenue records.
The changed title of the property is recorded in the revenue records as mutation of property.The mutation is recorded in the Municipal records for property tax payment purposes,
and it does not refer to the legal title of the person to whom the property has been mutated.
The buyer have to submit an application containing the relevant information on plain paper, along with a non-judicial stamp of relevant value to the Tahasildar of the area.
5 Agreement signing.
The agreement is a written document between seller and buyer in the presence of a witness.The seller sells and buyer buys
it under the recorded terms and conditions.The conditions include value of property, property extension, documentation period,amount paid as advance, possession certificate etc.
6 Registering the agreement
The agreement is registered at Sub-Registrar’s office which in turn reflects in the Sub-Registrar’s records,and thus
the future buyer can easily find the valid agreement.
7 Take Stamp Paper in Buyer's name and pay the stamp duty.
The stamp paper can be purchased from state treasury or stamp paper vendor depending upon the value of the stamp.The value of the stamp
varies based on the purchase price.
8 Deciding fair value of land.
The actual sale value of the property determines the stamp duty of the property.The sale value cannot be lower than the
fair value of land which is determined by the government.
9 Getting sale deed.
The sale deed has to be issued by a recommended professional to make it defect free and does not make any future
complications.
10 Registering the land in Registrar's Office.
The land has to be registered in the concerned Sub Registrar's office concerned.The registration must be done within the time frame as in the sales agreement.
2% of the cost of the land will be charged as registration fees, irrespective of the property’s location.
11 Receiving documents after registration.
After the completion of the registration the office will provide a receipt.The buyer can collect the document from the registration office after a few weeks.
12 Changing title of the property.
The title of the property can be changed after submitting an application form in the village office.This process is done
to change the revenue record of the property from seller's name to buyer's name.This process is known as 'Pokkuvaravu'
in Malayalam.
13 Paying property tax and getting tax receipts.
Pay the desired tax in buyer's name in corresponding village office after the mutation of the property.
1 Property identification.
The main step before purchasing a property is the identifying the correct property on the basis of
location and range of the budget. After that negotiate the cost of the property, payment mode and terms with the seller of
the property.
2 Legal perspective.
After finalizing terms with seller it is very important to meet a lawyer. This will the buyer to obtain a legal title report for the property.
The buyer can conduct research on property documents with the help of a lawyer in order to check everything is in proper
order.It takes about 3 to 5 days to prepare and submit title report.
3 Getting encumbrance certificate.
The encumbrance certificate is a very important as it proves that the property is free from loans, leases, unpaid debts, etc.
The encumbrance certificate is issued by the Sub-Registrar’s office after verification of the relevant property documents.
The buyer has to get the encumbrance certificate (for a period of at least 30 years) before getting into an agreement for the sale with the seller.
4 Verification of the revenue records.
The changed title of the property is recorded in the revenue records as mutation of property.The mutation is recorded in the Municipal records for property tax payment purposes,
and it does not refer to the legal title of the person to whom the property has been mutated.
The buyer have to submit an application containing the relevant information on plain paper, along with a non-judicial stamp of relevant value to the Tahasildar of the area.
5 Agreement signing.
The agreement is a written document between seller and buyer in the presence of a witness.The seller sells and buyer buys
it under the recorded terms and conditions.The conditions include value of property, property extension, documentation period,amount paid as advance, possession certificate etc.
6 Registering the agreement
The agreement is registered at Sub-Registrar’s office which in turn reflects in the Sub-Registrar’s records,and thus
the future buyer can easily find the valid agreement.
7 Take Stamp Paper in Buyer's name and pay the stamp duty.
The stamp paper can be purchased from state treasury or stamp paper vendor depending upon the value of the stamp.The value of the stamp
varies based on the purchase price.
8 Deciding fair value of land.
The actual sale value of the property determines the stamp duty of the property.The sale value cannot be lower than the
fair value of land which is determined by the government.
9 Getting sale deed.
The sale deed has to be issued by a recommended professional to make it defect free and does not make any future
complications.
10 Registering the land in Registrar's Office.
The land has to be registered in the concerned Sub Registrar's office concerned.The registration must be done within the time frame as in the sales agreement.
2% of the cost of the land will be charged as registration fees, irrespective of the property’s location.
11 Receiving documents after registration.
After the completion of the registration the office will provide a receipt.The buyer can collect the document from the registration office after a few weeks.
12 Changing title of the property.
The title of the property can be changed after submitting an application form in the village office.This process is done
to change the revenue record of the property from seller's name to buyer's name.This process is known as 'Pokkuvaravu'
in Malayalam.
13 Paying property tax and getting tax receipts.
Pay the desired tax in buyer's name in corresponding village office after the mutation of the property.
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