Property Buying

15 Things To Check Before Buying Property In Kerala

Buying property in Kerala is one of the best investments you can make for several reasons: owning property is a matter of prestige; there is always appreciation for property as the available land is not increasing; property can be sold, rented or leased out, and you can get healthy returns on your investment.

Checkout some of the tips to be kept in mind while buying a new construction in Kerala.

If you’re thinking of investing in real estate in Kerala, here are some things you need to consider:

1. Title Deed

Title Deed

Check the title deed and make sure it’s clear – that the seller is the rightful owner of the whole property, and that it has not been mortgaged or sold. It would be prudent to have a lawyer go through all the documents to verify this. If you’re thinking of purchasing an apartment or villa, check if the builder owns the land, or simply the development rights.

2. Land Use Zone

Ensure that the land you are buying has been zoned for the purpose you have in mind; for example if you buy property in Kerala for constructing a commercial building, first ensure that that particular land has been zoned as commercial.

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3. Agricultural Land

If you’re buying land earmarked as agricultural, you will need permission to convert it into non-agricultural land and obtain a certificate to that effect from the District Collector.

4. Licenses


It’s crucial that you check all the paperwork when you want to purchase an apartment. Enquire if the project has received approval by the relevant civic authorities. Also check if the builder has obtained other necessary approvals like environmental clearance, commencement certificate and so on.

5. Release and Encumbrance Certificate

If the property you’re purchasing is an apartment for resale, check if it is mortgaged with a bank. If it was pledged, ensure that the loan has been paid off and obtain the release certificate to be safe. Ask for an Encumbrance certificate to be sure that there are no legal holds on the property.

Here are the top things to be kept in mind while buying an Apartment.

6. Fair Value

Whenever you buy a house or land in Kerala, enquire about the ‘fair value’ as set by the Government. The actual market value is different from this; however, you will be in a better position to negotiate the sale price when you have this information.

7. Access

Whenever you’re buying a plot of land, check how good an access the place has – is it on the main road, or in a lane? Can vehicles easily reach there? Whether you’re looking to build a home or commercial project, vehicular access is necessary. Ample parking space availability is also a major consideration.

8. Property Size

Property Size

Make sure you measure the size of the property precisely. Get a licensed surveyor to mark and measure the land, if you’re buying a plot. If you’re buying an apartment, villa or a house, measure each room, bathroom, corridor and balcony space, if present; check with the builder how much of it is carpet area, and how much is built up: that is, how much portion of the common areas like lift, garden, lobby and so on is added to the actual carpet area of each apartment or villa.

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9. Check The Ground

When you’re looking at  properties in Kerala for constructing your own house, you need to make a thorough check of the soil and topography, to determine the kind of foundation you will need to make, how big a structure it will be able to support and so on.

10. Check the Site

You also need to check for availability of drinking water on the premises, trees (without shade, it may be unbearably hot in summer) and the general locality of the property. Make sure it’s a decent and safe neighborhood, and that you have markets or shops and healthcare facilities close by, and that you have access to highways or major roads and public transport. Also check if there are establishments that can cause disturbances, like factories emitting hazardous smoke or effluents, noisy equipment, bars and so on.

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11. Research The Builder

Research The Builder

Not all builders are above level. Do some background check to ensure that  there are no legal proceedings pending with regard to the apartment or villa you are planning to purchase. You can ask around, check online, and even enquire with customers of the builder’s previous projects.

12. Work out the total Outlay

If you’re buying an apartment, you may have to pay something towards club membership or a one-time payment to the resident’s association; you may have to purchase parking privileges separately; find out how much maintenance will be charged every month. In addition to these, and for any type of property that you buy, you will have to pay registration fees and stamp duty. In Kerala land registration charges are quite high compared to other states: you have to pay 8% of the sale value as stamp duty and 2% of the value as registration fees, which means a total of 10% of the sale value.

13. Check your finances

Do you have the necessary amount to buy the land or house you have shortlisted? If not, you will need a loan. Check out offers from various financial institutions and determine the EMIs. Check the terms and conditions of prepayment, non-payment and all the fine print before you finalize and apply.

14. Get Updated Construction Status Report

Get Updated Construction Status Report

If you’re purchasing an under-construction apartment or house, enquire when you will get possession and when it will be ready to occupy. Check that the builder has sufficient funding to complete the project on time. If you have an immediate requirement, you may be better off purchasing an apartment or house for resale.

15. Taxation Gains

If you’re buying property in Kerala with a view to sell it when the price appreciates, consider the capital gains, and the tax you may incur. If you sell it within 3 years, you will have short term capital gains, and if you sell it after 3 or more years, you will incur long term capital gains. Short term gains are taxed as per your income tax slab, and long term gains incur a maximum of 20% tax. You can avoid the tax by buying property within two years of the date of sale, or constructing one within 3 years, or investing in capital gains bonds (which are locked in for a long period)

Building your dream home is our motto and this is clear from the response of thousands of customers who have being sheltered in our residential and commercial developments that we have executed across cities like Kozhikode, Kochi and Thrissur. For more details,take a look at our luxury flats and Apartments in Calicut or contact us at: +91 9847332244

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