Professional Documents
Culture Documents
Buy Property in Kerala Final
Buy Property in Kerala Final
Residential Property in
Kerala
Version 1.0
By
TRANSFORM Property Consulting
www.transformproperty.co.in
Version 1.0
Disclaimer: While all attempts have been made to verify the accuracy of the
information provided in this publication, the firm assumes no responsibility
for any errors or omissions. Should the reader face any untoward difficulties, it
is recommended that they seek out legal support to rectify the same.
Introduction ...................................................................................................................................... 6
Objective of Buying Property ...................................................................................................... 7
Price Comparison ............................................................................................................................ 7
Sub Registrar Office ........................................................................................................................ 7
Village Office ..................................................................................................................................... 8
Transfer of Title ............................................................................................................................. 11
Transfer of Ownership ................................................................................................................ 12
Number of Sellers ............................................................................................................................. 12
Nature of Previous Sellers................................................................................................................. 14
Certificates ....................................................................................................................................... 14
Dues ................................................................................................................................................... 15
Litigations ........................................................................................................................................ 16
Equitable Mortgage ...................................................................................................................... 17
Power of Attorney (PoA) ............................................................................................................ 17
Stamp Paper .................................................................................................................................... 18
Utility of the Property .................................................................................................................. 18
Road Access ..................................................................................................................................... 19
Physical Possession & Disputes with Neighbours ............................................................. 20
Physical Survey .............................................................................................................................. 21
Area .................................................................................................................................................... 21
Building in a Property ................................................................................................................. 22
Vasthu Compliance ....................................................................................................................... 23
Original Documentation ............................................................................................................. 24
Other Checks ................................................................................................................................... 24
Coastal Regulatory Zone ................................................................................................................... 24
Wet Land ........................................................................................................................................... 25
Land Acquisition Notification ............................................................................................................ 26
Buying Process ............................................................................................................................... 26
Guideline Value ................................................................................................................................. 26
Purchasing Stamp Paper ................................................................................................................... 27
Investing in real estate is one of the best financial decisions you can ever make in
your life. Buying property will be very profitable for you in the long run. But this is
one decision you cannot make in haste. There are so many factors you need to
consider, and several decisions you need to make before you can actually sign on the
dotted line.
In this short eBook, we present you with 101 pointers you need to take note of before
buying property in Kerala.
We encourage you to take your time and go through all the questions listed below.
Rest assured, your time is well spent!
Is it for an investment or is it for own use? The objective of buying the property
determines the evaluation criteria to be relied upon.
Price Comparison
3. Have you verified property prices in the vicinity?
4. Have you done a professional valuation of the property that you are buying?
You have to obtain an Encumbrance certificate for a minimum of 30 years from the
Sub Registrar office to ensure that all transactions of the past 30 years have been
considered.
7. Have you ensured that EC is correct and has been obtained for all the survey
numbers in question?
The SubRegistrar’s office issues the Encumbrance Certificate after verification of the
relevant property documents, and it certifies all the transactions made on the
property for the time period you specify. You have to verify that EC is correctly taken
and the survey numbers match the ones you plan to buy. It needs to be ensured that
the EC obtained is up to date and not an old one.
Apart from the property transactions being entered EC will have entries related to
any mortgages, court attachments etc recorded in chronological order. Before buying
the property it needs to be ensured that all the encumbrances have been removed
and a fresh EC taken with removal entries for Encumbrances. Only then the property
title becomes clear and hence the importance.
Village Office
A Location sketch is provided from the Village office specifying the location of the
property and will give an approximate indication of where the property is located.
A Location certificate is more detailed description of the location with the sketch,
boundaries and other information regarding the property. Apart from details in
location sketch it will also contain the property survey numbers, area, owner name
and a description of the location where the property is located in.
11. Has the property been mutated in the current seller's name?
12. Have you tracked the ownership transfers through 'Thandaper' entries in the village
office?
Every transfer of the ownership will be recorded in the revenue record at the village
office. Ensure that this has been done for the said property by tracking the flow of
property through different Thandaper numbers.
On application to the respective village office, a certificate in form 12C will be issued
by the village office, certifying that the land mentioned therein, is in possession and
enjoyment of the person stated therein. Such a certificate will contain all the relevant
revenue details of the land viz: taluk, village, old survey number, re-survey block and
number, extent of land, Thandaper number and class of land.
The Thandaper number is issued by the revenue department recording the area of
land held by the owner.
15. Have you verified about attachments on the property? Have you obtained the Non
Attachment Certificate?
On application, the respective village office will issue a Possession and Non-
attachment certificate in form 14C which will certify- apart from the details shown in
form 12C-that the land is not under any other attachments, if it is so.
16. Are there any entries in the Thandaper register of the seller, specifying any dues on
the property?
Please check whether any dues are recorded in the Thandaper register of the seller
pertaining to this property.
Verify the details of the tax paid at the respective village office and ensure that it has
been remitted up to the current financial year.
18. Have you seen the latest original receipt for the tax paid?
Obtain and verify the latest original tax receipt. This is important because small loans
are taken by property owners by using latest original tax receipt. Though not
exhaustive it helps to ensure that property is debt free to some extent by insisting on
seeing the original latest tax receipt.
BTR refers to the Basic Tax Register kept in the village office. After a new owner pays
20. Have you verified that the entries in BTR match the area mentioned in the
document?
Make sure that the entries made in the Basic Tax Register (BTR) match the area
mentioned in the document.
Transfer of Title
21. Does the owner have a marketable title?
A title is the bundle of rights over a piece of property that someone has. A marketable
title is one that can be transferred to a new owner without the likelihood that claims
will be made on it by another party. You need to first verify that the seller of the
property possesses such a marketable title. It can be done by verifying all mother
deeds and related property documents.
The title can be obtained through the owner in several different ways. Some of the
common ways are through a jenmom rights, Pattayametc
If the ownership rights have been obtained through Pattayam, you need to
necessarily verify the original document. It is one of the first original records about
the ownership of a property. You need to verify the authenticity of the Pattayam
before your purchase. The serial number of the Pattayam needs to be cross verified
with the entries in the respective government office records.
There are specific rules and guidelines when you are purchasing a property where a
minor has an interest. You need to make sure that the property sale is being done in
accordance with the applicable laws with respect to the sale of property by a Minor.
Transfer of Ownership
Number of Sellers
25. Is it a joint ownership property? If so, are all owners willing to sell the property?
Have they given an agreement?
Check whether the property has more than one owner. If yes, ensure that all the
owners are willing to sell the property. Make sure you collect an agreement from all
the owners confirming their willingness to sell the property.
If a Will is involved in any of the previous Title transfers along with the sale deeds, it
has to be ensured that the Will used for transfer of title was indeed the last Will of
the person. Probation might be required depending on the specific situation.
If any of the Title transfers have been done by a Will, check if it is registered or not.
There is always a chance that the genuineness of an unregistered Will might be
questioned. Hence if an unregistered Will is involved, title scrutiny should be even
more stringent. On the other hand, if it is a registered Will, there is hardly any
chance for its genuinity being challenged.
In the absence of a proper Will, the Legal Heirship certificate is required to establish
the legal heirs for the transfer of property. This is typically issued by the taluk office
concerned, of course after gazette notification etc. which entails rather long period of
time.
In the absence of Legal Heirship certificate, sellers rely on the relationship certificate
to establish their claim as the rightful owner. This is issued by the village office
concerned and requires less time than what is required for getting a Legal Heirship
certificate.
This certificate establishes the authenticity of the heirs and gives them the authority
to have securities and other assets transferred in their names, and inherit debts. A
Succession Certificate requires longer time for its issue but is considered to be the
exhaustive proof for establishing the legal heirs.
31. Has mutation been done after establishing the legal heirs?
Check whether mutation/property transfer has been done after establishing legal
Heirship. That makes it safer and more credible.
Each religion has its own laws regarding the transfer of ownership in case a Will is
not forthcoming. Especially in the case of Muslims, there are some laws as to how the
legal heirship is decided. Therefore, while purchasing property from Muslims, you
have to verify whether they have followed the legal procedures and the transfer has
been done according to the law. So overall, religion of the parties involved has a
bearing on how the ownership is transferred.
Check if any Trust/Society was involved in previous transfers. You need to be careful
when dealing with non-individual entities like a Trust or a Society as the laws
governing them might be different. You have to obtain and examine the bye-laws of
such entities to see the persons authorized for such asset transfers.
If a Trust/Society was involved in any of the previous transfers, a copy of the board
resolution/minutes/bye-laws should be verified.
Certificates
35. Have you obtained the Non Agriculture Land / Conversion certificate?
According to the Urban Land Ceiling Act, an individual can hold only up to 14 acres
of land in Kerala. Ensure that the seller has furnished in the deed necessary affidavit
regarding holding property within the prescribed land ceiling limit.
Dues
37. Are there any Dues pending to anyone with respect to the property?
Ensure that the property is free from loans, liabilities or any other dues of all types.
38. Are there any chances of Crowns Debt / Queens Due pending for the Seller which
might trouble you in the future?
Crowns Debt / Queens Due refer to the debt due to the crown or state. Make sure
that there is no crown tax and debts payable to the State by the seller since debts of
such nature have preference on rights over any other individual rights.
39. Have you checked whether there are any Income Tax Dues for Seller?
Check with the Income Tax department on whether the seller has any dues pending.
40. Is there an Income Tax Clearance specifying that there are no tax dues for the seller?
The Income Tax Act, 1961 states that any lease transaction for not less than 12 years,
or any sale transaction above a prescribed transaction value limit, has to undergo a
clearance process from the appropriate income tax authority. Ensure that the Income
Tax Clearance process is done and the seller does not have any tax dues pending with
the Income Tax Department.
Check whether there are any cases/litigations filed against the property in the court.
42. Has any sale agreement been executed earlier in respect of the suggested property?
Before buying a property check whether any sale agreement has been executed and
registered previously in respect of the property. This can be verified through sub
registrar office concerned. (Now, property sale agreements are to be registered
compulsorily). Having such a prior agreement where someone else holds a right to
the property can be a big issue in some cases and can even result in you losing the
property after you have bought depending on the situation.
44. Is the seller ready for an affidavit of indemnity, confirming that they have not got
into any transfer of rights with respect to the said property?
Affidavit of indemnity is the declaration from the seller confirming that no rights of
the property have been transferred.
Equitable Mortgage is done by depositing the Title Deeds with banks or financial
institutions. So, if all original documents are available with the sellers then there
would be no equitable mortgage on the property if the deeds are genuine.
But in certain exceptional circumstances, banks will accept certified copies of title
deeds for equitable mortgage. Therefore, even if the original title deeds are available,
you have to ensure against earlier equitable mortgage using certified copies of title
deeds, which mighthave been secured by some misrepresentation/unscrupulous
means.
46. Have you checked the common 'CERSAI' registry (if applicable) to ensure that there
are no equitable mortgages on the property?
Check the 'CERSAI' registry to ensure that there are no equitable mortgages on the
property.
The power of attorney (PoA) gives an individual the power to act on behalf of
another. The scope of the authority granted is as mentioned in the deed of power of
attorney. Check whether any Power of Attorneys are involved in any of the title
transfers. Also check whether the PoAs are adjudicated / registered.
48. Have PoAs been given to third parties or have they been given to blood relatives?
Was there any reason for the issuance of PoAs?
Stamp Paper
49. Have you ensured that the stamp paper numbers are in serial order?
Check the stamp paper of the previous deeds and ensure that the numbers are in
serial order. This is an additional check to ensure the authenticity of the documents.
50. Have you verified that the serial numbers specified in the certified copy of the
documents are indeed the ones that are there in the original documents?
Ensure that the serial numbers in the certified copy of the documents match with the
originals.
Ensure the availability of ground water, a well or Government water supply. If the
property already has a water connection, verify the documents.
52. How is electricity available? Is there a need to draw up electric lines to the property,
or are the electric lines already available?
Check whether the electricity connection is available. If yes, verify the documents. If
an electricity connection does not exist, check if there is a need for drawing up
electric lines to the property.
Check and verify the dimensions of the property you are interested in. Ensure that it
has sufficient width for the intended purpose.
Ensure that proper drainage facility is there for the property to avoid future
complications.
Check with local people whether there is water logging in the property during the
rainy season.
Road Access
56. Has road access been defined for the property in the document?
Road access should be clearly defined in the document. If there is a road access to the
property it will appear as one of the boundaries in the document unless a separate
easement deed has been created for access.
The road access mentioned in the document should be physically verified before
buying the property. It should be ensured that a road physically exists and is usable.
In the case of a private road, the person who issues the right for usage should have
the authority to do so based on documents that he holds.
60. If the access is not a public road, then who holds the title for the road? Do you know
who has given the easement right?
In case of private road, check who holds the title for the road and who has given the
easement right.
Check whether the physical possession of the property lies with the owner.
There could be many situations where boundary disputes exist with neighbouring
property owners due to previous issues amongst the owners. Find out if such issues
exist.
63. Which are the boundaries / boundary walls of the applicable property?
Find out the boundaries / boundary walls that belong to the said property.
Depending on the region (local practice) incidentally only 2 boundaries/boundary
walls belong to a specific property and only on those boundaries can the property
owner construct walls; other boundary walls might be that of neighbouring
properties. This needs to be checked.
A physical survey helps to ensure the exact area of the property. This also helps to
understand the exact dimensions of the land.
65. Have you got the property surveyed and the boundaries verified?
Please check the boundaries with the adjacent properties and ensure that they are the
same as per the records. Boundaries are clearly specified on sale deeds.
In 1996, the Government ordered a complete re-survey of all the land in Kerala. In
several cases, there is a variation in extent in the re-survey records when compared
to the previous survey and settlement records. For registration of title deeds and all
other transactions, it should be ensured that the Re-survey No., subdivision number
and extent are correctly recorded if re-survey has been completed by government in
respect of the suggested property.
67. If a re-survey has been done, have you obtained the new survey numbers post the re-
survey?
New survey numbers will be issued post re-survey. Check whether the re-survey
number has been allotted to the property. If so, this needs to be correctly recorded on
the sale deed.
Area
68. Does the area in the document match the physical area?
Ensure that the area mentioned in the document matches with the physical area that
has been surveyed / measured.
Verify that the area mentioned in the document matches with the area listed in the
revenue records (Thandaper).
Building in a Property
It is an added advantage if the property has been bounded on all sides by boundary
walls.
If there are any buildings in the property, verify the building tax remittance details.
Occupancy certificate is issued by the respective local body after the completion of
newly constructed buildings (flats & apartments).
This certificate has to be verified in the case of apartments to ensure that all
applicable rules and regulations have been complied with while building the
apartment.
76. What is the Building 'FSI' (Floor to Space Index) applicable in that area?
Building FSI or Floor Space Index is the ratio between the permitted built up area
and land available. You need to check the FSI applicable in that particular locality.
This is relevant in those situations where you are planning to construct a building
after purchasing a piece of land.
Vasthu Compliance
VasthuShastra is an ancient Indian Vedic Building Science that lays out building
construction guidelines, so that buildings are built in harmony with the natural
environment. The building is expected to manage the flow of cosmic energy (Prana)
through it and around it, and by doing so; it promotes the peace, prosperity and well-
being of the people who inhabit it.
Original Documentation
79. Have you seen the original documents related to the property?
You need to trace the previous title deeds (with original receipts of registration) of
the property for a minimum period of 30 years. This would avoid issues with respect
to property claims by third parties at a later stage to a very large extent.
Other Checks
Coastal Regulatory Zone
81. Does the property fall within the Coastal Regulatory Zone Area?
Coastal Regulatory Zone area or CRZ areas have been specified by the Government to
ensure the safeguard of the environment sensitive areas. These are typically
properties near water bodies. Different set of rules are applicable for such properties
with respect to building and other restrictions and hence they need to be checked.
82. Have you assessed the implications of CRZ on future use of the property?
Coastal Regulatory Zone rules put several restrictions on use of the property. Hence
depending on the intended use of the property these restrictions should be evaluated
for arriving at a clear picture before the property purchase decision.
There are several building restrictions applicable for wetlands especially in the light
of the 2008 Paddy and Wetland conservation act. Hence the nature of a property
needs to be ascertained before the purchase decision is taken.
Check the revenue records and identify whether the said land falls under wetland
category. There are several restrictions on non Garden land (“Purayidom”) category
of land.
Physically verify whether the nature of the property matches with that mentioned in
the records. There could be some lands which appear as a wetland though they are
recorded as ‘Garden Land’ in revenue records and also the other way round. It is
better to ascertain both the physical nature and the document nature of the land
before the purchase decision is taken.
86. When was the land filled (if it has been done)?
There are some relaxations with respect to 2008 Paddy and Wetland Conservation
act if the land has been converted into a non-wet land several years ago. Hence the
year of filling is important and hence this needs to be ascertained.
87. How does the land appear in the Data Bank prepared as per the Paddy & Wetland
Conservation Act?
Check with the Government Data Bank prepared as per Paddy & Wetland
Conservation Act and verify the exact nature of the land in case there is a doubt that
the suggested property is a wetland or not(Data Bank is available with Village Office
or Agricultural Office concerned).
88. Has the land been notified under any acquisition scheme by a local Government
body?
Check with the revenue authorities whether the subject land has received any
notification under Government acquisition schemes. This can affect the intended use
of the property and hence needs to be a factor while evaluating the purchase.
Buying Process
Guideline Value
89. Have you checked the guideline value of the property (Fair Value)?
This is the minimum value at which a sale deed can be registered, which is specified
by the Government of Kerala. The guideline value register available with the sub
registrar office has the guideline value applicable across Kerala. Alternatively, this
can be checked at http://igr.kerala.gov.in/fairvaluesearch.aspx
90. Have you checked if the property is Government land or Puramboke land?
Puramboke land is land that belongs to the government and no seller can claim title
to Purambokeland. Fair value would be declared as 'Zero' for Government or
Puramboke land in Fair Value Records.
91. Has the Guideline value been declared by the Government for the specified survey
numbers?
Check whether the Guideline value (Fair value) has been declared for the specified
survey numbers. If not, take steps to ensure that the guideline value for the
applicable survey number is provided to you. An application to the local village
92. Is the value of the property high, making it mandatory for 'Franking' of stamp to be
done?
For high value transactions, physical purchase of stamp paper might be difficult. In
such cases, ‘Franking’ option can be chosen. Franking is the printing of required
value of stamp duty on legal paper. This can be done in selected Sub registrar offices
in the State.
If the property value is more than Rs.50 lakhs, the buyer is responsible for paying 1%
TDS in seller’s name before handing over the money to seller towards purchasing the
property.
In the case of purchase value above Rs.50 lakhs, the TDS certificate is a mandatory
requirement for registration.
PAN
95. Does the seller have PAN?
PAN number is mandatory for all transactions over Rs. 5 lakhs. If the transferor has
no PAN he will have to submit the prescribed form 60.
With the help of a legal expert, ensure that the property deed is drafted
professionally and is authentic.
97. Does each previous title deed clearly talk about the respective prior transfer that
happened in the property?
Verify and ensure that all the previous transfers have been recorded in the successive
title deeds correctly
98. Are all schedules filled in with correct survey numbers and area available in each
survey number?
Check and ensure that all schedules are filled in with correct survey numbers and the
area available in each survey number.
Check whether the survey numbers of the property have been correctly recorded in
all places in the document. If mistakes creep in to the document it can be big issue to
correct this at a later point in time. It is better to ensure a defect free documentation
at first instant itself.
Find out whether the seller is an NRI. The rules and procedures are slightly different
when you are buying from an NRI. It is the buyer’s responsibility to ensure that 20%
TDS is done on the sale of property by an NRI.
Hope we have been able to shed some light on property investments. If you have any
further questions, please do not hesitate to contact us.
If you need any extra guidance with your Real Estate investments, do not hesitate to
contact us at hello@transformproperty.co.inor visit www.transformproperty.co.in for
more information on what we have to offer.