Flat owners get individual land ownership rights in this state

In a ground-breaking move, the southern Indian state of Kerala has initiated the issuance of individual land ownership rights to flat and apartment owners. This revolutionary decision by the Kerala Revenue Department will enable owners to transfer registration of their portion of land, which was previously tied to a collective title deed, into their personal names.

Streamlining Financial Responsibilities

Under this new framework, flat owners can individually settle their land tax, which simplifies financial responsibilities. Until now, land taxes were pooled together, with payments typically managed by builders or residents' associations.

This change stands to benefit around 200,000 flat owners statewide, empowering them with individual land tax receipts. Such receipts can significantly ease banking and legal transactions, especially when securing loans or involved in property sales.

Transfer and Sale Procedures

Upon a flat sale, the buyer must ensure their land share is reflected in the title deed before ownership is transferred. Revenue officers will govern this process by providing a unique sub-number tied to the main title deed number. For instance, if individuals Kaash and Rashmi purchase flats under title deed number 100, they would receive identifiers 100/1 and 100/2, respectively. As such, the total land noted under the principal title diminishes correspondingly.

Once all rights are fully transferred, the originating title deed will indicate no land holdings, subsequently becoming null. Until this is achieved, builders retain tax responsibilities, unless individual owners settle any unpaid taxes.

Inclusion of Rehabilitation Schemes

The order also extends to flats developed under tsunami rehabilitation initiatives. In cases where land shares aren't specified in agreements, receipts will label the land as an 'undivided share (UD)', with the area equally allocated among the flats. Consequently, taxes will be applied using municipal or local rates, or the minimum area rate, whichever is the higher amount. Ownership certificates may also be issued, noting the undivided status and referencing the main title deed.