Important Legal Steps for Property Buyers in Kochi
1. Check Title Ownership
Make sure the sellers have a clear, marketable title without any encumbrances like outstanding mortgages or legal disputes. Important documents to review include:
- Title Deed: Shows ownership history (Sale Deed, Settlement Deed, etc.)
- Encumbrance Certificate: Ensures no liens or claims exist over the property
- Property Tax Receipts: Should match the seller’s ownership details
2. Perform Due Diligence Look at the project plans for municipal compliance and environmental clearances, especially for residential/commercial developments. Builders need to provide:
- Approved Building Plans
- Zoning Clearances (residential/commercial zone allotments)
- Occupancy Certificates for construction projects
3. Know Registration Costs Legal charges in Kochi include:
- Stamp Duty: 8% of the property value (Kerala’s state levy)
- Registration Charges: 2-3% of the transaction value
Common Mistakes to Steer Clear Of
Skipping RERA Compliance Properties over ₹50 lakh or 500 sq.m. must register with Kerala RERA. Not complying can lead to project delays and erode buyer rights. Benefits of RERA include enforced timelines and standardized grievance resolution.
Neglecting Utility Verifications Make sure water/electricity bill payments are up-to-date to avoid post-purchase disputes.
Handling Legal Disputes
For contested properties, involve:
- Local Sub-Registrar Office: For registry interpretations
- Consumer Forums: For developer contract violations
Pro Tip: Hire a reputable real estate lawyer or consultant to handle document scrutiny and court-related issues during negotiations.
RERA’s Role in Buyer Protection
Kerala RERA mandates:
- Clear Project Information: Ads/API documents must show accurate building specs
- Account Escrow: 70% deposits of external funds protect buyers from misallocated resources
- Dispute Resolution Mechanisms: Three-tier redressal system (Project Accounting Authority → Advisory → Appellate Tribunal)