What are the permissions required when one is in the process of acquiring immovable property?
This will depend on the conditions agreed - upon which the payment will be made and the status of the sellers and or the purchaser/s.
If the seller is an Indian national wishing to sell his property to a purchaser who is also an Indian national, and if the sale consideration exceeds the prescribed limit under Chapter XXC of the Income-Tax Act, 1961, the parties to the Agreement for Sale or Memorandum of Sale should be within 15 days of the execution of such Agreement of Sale/Memorandum of Sale file Form 37-I with the Appropriate Authority, within whose jurisdiction the property is situated, for a grant of 'No Objection Certificate'. Form 37-I is to be filed only if the sale consideration exceeds the prescribed limits notified and made applicable to a city to which Chapter XXC of the Income Tax, 1961 is applicable.
After the receipt of the 'No Objection Certificate' under Chapter XXC of the Income Tax Act, 1961 and before executing the Sale Deed, the Seller will be required to obtain clearance certificates under Section 230-A of the Income Tax Act, 1961.
The Clearance Certificate under Section 230A of the Income Tax Act, 1961 is required only if the sale consideration exceeds Rs.5,00,000.
If the buyer is NRI or a Foreign National of Indian Origin (as per qualification), acquires residential/ commercial immovable Property in India from and out of foreign funds, either paid directly or through NRI account, such a purchase is entitled to repatriation of such funds used for purchase after a lock-in period of three years from the date of Sale Deed being executed or possession being taken in part performance, whichever is earlier, provided the Purchaser files for IPI 8 of the Exchange Control Rules within the period of 90 days of the Sale Deed being executed or possession being taken in part performance, whichever is earlier.
Few Things to keep in mind before buying property in Kerala.
Are you considering buying property in Kerala? Here are a few tips that could help you. First, it would be a good idea to hire a competent Advocate to check all the original documents of the property you plan to buy.
The reason is, if the title is not clear, lots of complications could arise in future. First of all, no bank will be willing to offer loan against the property if the title deed is not clear. Again, you may face problems when you wish to sell the property.
Here are a few things that you should check and verify before buying a property -
• Documents relevant to the Land / Project / Building / Apartment
• Documents relating to the Premises
• Stamp Duty and Registration
Present kerala land registration procedure for NRI's
As per the present land registration procedure introduced by the Government of Kerala on 7th May, 2007
It has become mandatory to add photos and thumb impressions of very buyer and seller on stamp paper at the time of documents registration. This is to stop fake transactions ( selling and buying of land in the state).
This decision is very difficult to every NRIs to buy or sell land in their dream land in kerala. but now some exemption given for NRIs , that the Govt. exempt NRIs from personal appearance when selling or buying land in Kerala.
For this 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 .
Land documents that you should check before you buy land in Kerala
Conveyance Deed or Sale Deed - This is a deed document. By this, the title of property is 'conveyed' by the seller to the purchaser. Conveyance is the act of transferring ownership of the property from a seller to the buyer. This document will help you ascertain whether the flat in an apartment complex which you are buying, is on land belonging to the society/ builder/development authority in which the property is located.
7/12 Extract - This document issued by the concerned land authorities contains details like survey numbers, area, date - from which current owner is registered as owner.
Index II - This document issued by the Sub Registrar's office mentions the names of the sellers & purchasers of the property, for which the document is registered.
Title Certificate - An advocate issues the Title Certificate after conducting a search on the title of the property intended for purchase. The title certificate would state if the property is unencumbered and has a clear marketable title.
Usually, a search on the title of the property is taken for a period of the last 30 years. It is mandatory for the developer to annex a copy of these reports in the "Agreement for Sale" with the intended purchaser of the apartment.
These documents would state whether the title to the property is clear, marketable and free from encumbrance. It would state clearly whether or not there is any existing mortgage, litigation, condition or claim, which is likely to affect the title of the buyer adversely.
Non-Agricultural Land Permission - If the land you are planning to buy is a paddy field or agricultural land and if you plant to use it for residential/commercial/industrial purpose, the agricultural land has to be converted to non-agricultural land and an Non Agriculture Order has to be obtained from the Collector of the District where the property is located.
Along with this, one needs to take the latest receipts evidencing the payment of Non Agriculture Tax. In cases where the conversion from agricultural use to non-agriculture use is not done within the stipulated period then, there should be an order from the concerned authority extending the period.
37(I) Clearance [No objection certificate under section 269 (3) of the Income Tax Act, 1961] - If any immovable property in cities specified by the Appropriate Authority is transacted above a certain value, it needs to obtain a No Objection Certificate from the Appropriate Authority as defined under the Income Tax Act. A transaction would be incomplete and invalid if this clearance is not obtained.
A statement in Form no. 37(I) needs to be jointly submitted by the seller and purchaser - The appropriate authority would issue a No Objection Certificate, if it feels that the property has not been undervalued. If the appropriate authority feels that the property is undervalued, then it would do pre-emptive purchase of this property and sell it subsequently through an auction/tender.
Various transaction limits have been set for various cities.
Things to check when you buy an Apartment / Flat
The Development Agreement is an agreement entered into by the builder with the landowner if the builder does not already own the land or has a contract with the landowner. It contains details regarding the terms and conditions on which the landowner has permitted development on his property. By this agreement, the landowner engages the developer to develop and build on their plot of land. This agreement generally may also have a Power of Attorney in favor of the developer.
Approved Building Plan
The building plan has to be approved by the Corporation or the concerned authority. The approved building plans should be checked.
The certificate, issued by the Municipal Corporation permits the developer to begin construction once the plans have been approved.
This is a Certificate given by the concerned authorities to the developer once the building project work is complete and fit for occupation.