Kerala's fair market value for land serves as the foundation for calculating registration and stamp duty charges. Prices fluctuate based on the property's location, specific zones, and available amenities. Property transaction revenue is also influenced by this assessed value.
Fair Value vs. Market Value: A Distinction
It's important to distinguish between fair value and market value. The Kerala state government establishes the fair market value. Conversely, market value is dictated by the dynamics of supply and demand within Kerala's real estate market. Should the agreed-upon transaction value fall below the government-assigned fair value, it implies the land is being transacted at a price lower than its official valuation. This valuation significantly impacts deed registration and stamp duty calculations.
Consequently, the fair value, also referred to as the consideration amount, becomes the basis for computing these fees, with the higher value being considered.
Significance and Application of Fair Market Value
For transactions where the sale deed was executed before a fair value revision, the valuation at the time of document execution stands. Kerala's fair market value dictates the applicable stamp duty for registration.
Determining Fair Market Value: A Step-by-Step Guide
To ascertain a property's fair market value in Kerala, follow these steps:
Access the IGR Kerala Website: Begin by visiting the IGR Kerala website.
Select Location Details: Utilize the drop-down menus to specify the district, taluk, and village pertaining to the property.
Provide Property Specifics: Input further details, including Desam, block number, land type, and the survey number.
View Fair Value: Click on the 'View Fair Value' tab. This will redirect you to a new page displaying the calculated fair value.
The latest revisions to Kerala's fair market value should be reflected in the most recent notification. It is imperative to review the disclaimer on the IGR website. The department explicitly states it isn't liable for any discrepancies, advising users to verify the rates against official notifications from the collectors or RDOs.