The real estate market in Kerala is booming evident from the registration data with the Kerala Real Estate Regulatory Authority. As per the RERA, there is a remarkable year-on-year increase in the number of property registrations in Kerala. This can be attributed to the demand for residential properties in urban areas like Kochi and Trivandrum, investments by NRIs, and plot registrations as large land parcels are divided into smaller plots. Under these circumstances understanding stamp duty and registration fees in Kerala becomes necessary for home buyers and investors.
Stamp Duty
When you buy property in Kerala, it is mandatory by law to register the property in the owner’s name and record it with the government. Without this, the transaction will not be considered and recognized as a legal transaction. Home buyers in Kerala must pay a percentage of the property value as stamp duty during this process. Stamp duty is the state-imposed tax levied on the purchase or transfer of immovable property. For example- for flats in Kochi, like in other parts of Kerala, the rate of stamp duty as determined by the government is 8%. This charge is payable on the sale deed or transfer document for all the flats for sale in Kochi.
Registration Charges
Registration charges are the fees paid to the government to officially record the property transaction. They are separate from the stamp duty charges and cover the administration costs associated with the process of registration. While most states in India charge 1% of the deal value as a registration charge, Kerala charges 2% on the transactions for apartments in Kochi.
Exemptions and Concessions
Certain categories of property transactions are eligible for exemptions and concessions on stamp duty and registration charges. First-time homebuyers, women, and economically weaker sections may be exempt from taxes. This initiative is to encourage home ownership and make it accessible to certain sections of the society.
Property Registration Process
The property registration process can be completed offline by visiting the Sub-Registrar’s office. The required forms need to be filled and the stamp duty and registration charges can be paid. For online registration and payment, the Kerala government has permitted the usage of e-stamps where the stamp duty charges exceed Rs 1 Lakh. These e-stamps can be purchased from the official portal of the State’s Registration department. All the details for the process can be found on the link – http://www.keralaregistration.gov.in
Important documents required during the registration process are listed below :
1. Original Title Deeds
2. Encumbrance Certificate
3. Identity Proofs – Aadhar Card or PAN card of the buyer and seller
4. Property Tax receipts
5. ROR
6. Location Sketch
7. NOCs – No Objection Certificates from relevant authorities
