Property Registration Process in Kerala

From document verification to stamp duty payments, ensure your property transaction is smooth and legally sound. Learn about the key documents required and we can help you for a hassle-free registration experience.

When purchasing property in Kerala, understanding the property registration process is crucial. It ensures that the ownership of the property is legally transferred to the buyer, providing legal recognition and protection. Here, we will explore the property registration process in Kerala in detail, including the necessary documents and steps involved.

The registration of property in Kerala is governed by the Registration Act of 1908. This process involves several steps to ensure that the transaction is legally binding, and the property ownership is transferred to the buyer. Here’s a comprehensive guide to help you navigate the registration process.

Step 1: Verification of Property Documents

The first step is the verification of property documents. This step is essential to ensure that the property has a clear title and is free from any legal disputes or encumbrances.

Step 2: Preparation of the Sale Deed

Once the property documents are verified, the next step is the preparation of the Sale Deed. The Sale Deed is a legal document that outlines the terms and conditions of the sale agreement between the buyer and the seller. This document should be prepared on a non-judicial stamp paper of the value prescribed by the state government. The Sale Deed should include the following details:

• Description of the property
• Details of the buyer and seller
• Sale consideration amount
• Payment details
• Date of possession
• Signatures of the buyer and seller

Step 3: Payment of Stamp Duty and Registration Charges

The next step is the payment of stamp duty and registration charges. Stamp duty is a tax levied by the state government on the sale of the property. The registration charges are the fees paid for registering the property in the buyer’s name. The registration charges in Kerala vary based on the value of the property and the location.

Step 4: Execution of the Sale Deed

After paying the stamp duty and registration charges, the next step is the execution of the Sale Deed. This involves the signing of the Sale Deed by the buyer and the seller in the presence of two witnesses. The Sale Deed should be executed at the Sub-Registrar’s office within whose jurisdiction the property is located.

Step 5: Registration of the Property

The final step is the registration of the property at the Sub-Registrar’s office. This involves submitting the executed Sale Deed along with the required documents and paying the registration charges. The Sub-Registrar will verify the documents and register the property in the buyer’s name. The registered Sale Deed will be returned to the buyer after registration.

Documents Required for Property Registration

Several key documents are required to complete the property registration process in Kerala. These documents ensure the legal transfer of property ownership and protect the interests of both the buyer and the seller. Essential documents required for Property Registration are as follows:

• Title Deed: This document establishes the ownership of the property and should be original.
• Encumbrance Certificate: This certificate ensures that the property is free from any legal liabilities or encumbrances.
• Identity Proof: Both the buyer and the seller must provide valid identity proof such as an Aadhar card, PAN card, or passport.
• Address Proof: Valid address proof of both the buyer and the seller is required, such as utility bills or bank statements.
• PAN Card: The PAN card of both the buyer and the seller is mandatory for property registration.
• Sale Agreement: The agreement between the buyer and the seller outlining the terms and conditions of the sale.
• No Objection Certificate (NOC): If applicable, this certificate from the concerned authority is required, especially if the property is mortgaged.
• Property Tax Receipts: These receipts confirm that all property taxes have been paid up to date.

Importance of Stamp Duty and Registration Charges

Stamp duty and registration charges are critical components of the registration process. These charges not only contribute to the state’s revenue but also provide legal validity to the property transaction.

Stamp Duty

Stamp duty is a tax levied on property transactions, making the sale agreement legally valid. The amount of stamp duty varies based on the property’s value and location. Paying stamp duty is crucial as it provides legal recognition to the transaction and can be used as evidence in court if any disputes arise.

Registration Charges

Registration charges for land/properties in Kerala are the fees paid to the government for registering the property in the buyer’s name. This registration process involves recording the Sale Deed in the government records, which provides legal protection to the buyer’s ownership rights. The registration charges also vary based on the property’s value and location.

Tips for a Smooth Property Registration Process

Navigating the property registration can be complex, but with the right approach, it can be smooth and hassle-free. Here are some tips to ensure a seamless registration process:

• Conduct Thorough Due Diligence: Before initiating the registration process, conduct thorough due diligence on the property. Verify the title deed, check for any legal disputes, and ensure that all property taxes have been paid. Engaging a legal expert can help identify any potential issues and ensure a smooth transaction.
• Prepare All Necessary Documents: Ensure that all necessary documents are prepared and available for submission. This includes the Sale Deed, identity proofs, address proofs, PAN cards, encumbrance certificate, and property tax receipts. Having these documents ready will expedite the registration process and avoid any delays.
• Pay Stamp Duty and Registration Charges Promptly: Pay the required stamp duty and registration charges promptly to avoid any legal complications. Ensure that the payments are made through the prescribed methods and retain the payment receipts for future reference.
• Engage a Reputable Legal Expert: Engaging a reputable legal expert can provide valuable guidance throughout the registration process. They can assist with document verification, preparation of the Sale Deed, and ensure compliance with legal requirements. A legal expert can also help resolve any disputes that may arise during the process.
• Schedule an Appointment at the Sub-Registrar’s Office: To avoid long waiting times, schedule an appointment at the Sub-Registrar’s office in advance. Ensure that both the buyer and the seller are present at the scheduled time along with the witnesses. This will facilitate the smooth execution and registration of the Sale Deed.

Important Steps in the Real Estate Property Registration Journey

1. Owner/Builder/Developer’s Role

Project Approval: Owner/Builder/Developer must ensure that the project has received all necessary approvals from local authorities (e.g., Panchayat, Municipality, Corporation etc.).

RERA Registration: If the property is part of a real estate project, it should be registered under the Real Estate (Regulation and Development) Act (RERA). This ensures that the project is compliant with legal requirements and protects the interests of the buyers.

Completion Certificate (CC): The Owner/Builder/Developer must provide the completion certificate once the construction is completed, proving that the building meets all legal and safety standards.

2. Title Check and Encumbrance Certificate

Title Check: Before registering any real estate property, the buyer should verify the land’s title to confirm the developer's legal ownership and their right to sell the property.

Encumbrance Certificate: This certificate is necessary to prove that the property is free of encumbrances (e.g., loans, mortgages, or legal disputes).

3. Verification of Project’s Legal Documents

Land Use Certificate: Ensures that the property is zoned for the type of construction (residential, commercial, etc.).

No Objection Certificate (NOC): For properties in some areas, an NOC from various authorities (municipalities, housing societies, KSEB etc.) might be necessary.

Building Approval Plan: The Owner/Builder/Developer must provide the approved construction plan from the local authority.

4. Agreement for Sale

Sale Agreement: In real estate transactions, buyers typically sign an agreement with the owner, developer or builder before the sale deed is executed. This agreement lays down the terms of the sale, possession date, payment schedules, and other terms.

5. Payment Structure

EMI/Loan Sanctioning: In case buyers are availing home loans, it’s important to have the loan sanctioned and ensure that the loan documentation aligns with the property details. This process may involve the lender in verifying the legal status of the property before finalizing the registration.

Advance Payment: For real estate properties, particularly under construction projects, buyers may need to make advance payments before registration.

6. Registration of Sale Deed

Multiple Buyers/Joint Ownership: In real estate properties with multiple buyers (for example, joint ownership of flats or units), all buyers must be present during the signing of the sale deed.

Electronic Registration (if applicable): In certain regions, electronic registration of property documents is now possible, streamlining the process.

7. Post-Registration

Transfer of Possession: After registration, the Owner/Builder/Developer must hand over the possession of the property to the buyer as per the timeline agreed upon in the sale agreement.

Mutation of Property Title: This is the final step after registration, where the buyer’s name is updated in the local land revenue records, and the ownership is officially transferred.

Maintenance Charges/Association Formation: For residential properties like apartments, the formation of a homeowners’ association or society is necessary for managing maintenance, common areas, and amenities.

8. Documents for Registration in Real Estate Projects

Project Registration Number (RERA): RERA registration is required for the project’s legal transparency.

Allotment Letter: For apartment transactions, the allotment letter issued by the builder can be a crucial document to be attached with the registration.

Possession Letter: The builder issues this after the final handover of the property to confirm that the buyer has taken possession.

Conclusion

The property registration process in Kerala is a critical step in the property buying journey, ensuring that ownership is legally transferred and recognized. For those purchasing a land or property, understanding the registration process is equally important. By preparing the necessary documents and paying the required charges, you can navigate the registration process smoothly. Remember to conduct thorough due diligence, engage a legal expert, and comply with all legal requirements to protect your investment and enjoy a hassle-free property ownership experience.

At keralarealestate.com, we understand the complexities of property registration and strive to make the process as smooth and transparent as possible for our clients. Our dedicated team of experts guides you through each step, ensuring that all legal requirements are met, and your interests are protected. keralarealestate.com stands out for its commitment to excellence, customer satisfaction, and attention to detail, making us a trusted name in the real estate industry of Kerala since 1998.