Rules and Regulations for Buying Property in Jammu and Kashmir

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Introduction

In order to acquire property in the Jammu and Kashmir region, certain rules and regulations need to be adhered to. It is essential to be aware of and comply with the legal requirements governing real estate purchases in this area. The state has emerged as a real estate investment destination. Openplot gives you instructions on how to Buying Property in Jammu & Kashmir.

Rules and Regulations for Buying Property in Jammu and Kashmir

Table of Contents

The right to buy a house in Jammu and Kashmir was reserved only for its permanent residents. However, with the special status abrogation in 2019, non-residents will also be allowed to invest in Jammu and Kashmir. Many other state residents are willing to invest in the real estate market in the beautiful valleys of Jammu and Kashmir.

But it was not possible due to giving special status to the state. The government here does not allow non-residents in Jammu. However, after the abrogation of Article 370 and Article 35-A by the central government, many non-residents in Jammu and Kashmir have shown interest in buying a house.

J&K Real Estate Laws: Changes, Challenges & Opportunities

What real estate developers, investors, and buyers should expect in the current legal landscape

Post-370 Legal Shifts

  • The abrogation of Article 370 aligned J&K’s laws with the Indian Constitution.
  • The Jammu and Kashmir Reorganization Act of 2019 paved the way for national real estate laws to apply.
  • Central laws like RERA (Real Estate Regulatory Authority), the Transfer of Property Act, and the Land Acquisition Act are now active.

Key Legal Changes for Developers & Investors

  • Non-residents can now own property, except for certain agricultural categories.
  • RERA J&K is in effect, enhancing transparency and buyer protection.
  • Land use regulations are now aligned with Indian norms, easing the development process.

What Changed After Article 370 Was Abrogated?

On August 5, 2019, the Government of India abrogated Article 370, removing the special status of J&K and bifurcating it into two Union Territories, Jammu & Kashmir and Ladakh.

Major Impacts on Real Estate:

  • Anyone from India can now legally buy property in Jammu and Kashmir.
  • J&K laws were brought under the Indian Constitution, aligning land and property rights with the rest of the country.
  • The move opened investment opportunities in residential, commercial, and agricultural real estate.
  • New laws aim to bring transparency and legal clarity and encourage private development.

Who Can Buy Land in Jammu and Kashmir?

According to the new guidelines issued by the Home Ministry, no residence or permanent residence certificate is required to purchase non-agricultural land in Jammu and Kashmir. Now, you can buy agricultural land and house plots. Not like before. A lot has changed now. Non-residents can also buy property in Jammu.

For agricultural lands or any property, only persons engaged in real estate activities can purchase land for developmental activities like the establishment of industries. But the land will be granted only after the approval of the government. If you buy land, you need to follow the rules and regulations for buying property in Jammu and Kashmir

Under Section 133-H of the Agrarian Reforms Act, the Central Government also allows contract farming with transferable ownership rights and grants of a lease or mortgage on land. This provision aims to encourage private investment in agriculture. Improve productivity through modern farming techniques. Contract farming agreements must be registered with the appropriate authorities to ensure compliance with regulations.

When RERA Started in Jammu and Kashmir

On August 1, 2020, the Union region of Jammu and Kashmir notified the rules under the Real Estate (Regulation and Development) Act, 2016. So far, 33 Union Territories and States have notified RERA regulations. The RERA Act, of 2016 aims to regulate the real estate sector and protect the interests of homebuyers. The implementation of RERA regulations across various regions is a significant step towards achieving transparency and accountability in the real estate industry.

Homebuyers benefit from checking unscrupulous builders. It opens new avenues for development in the Union territory by setting up an adjudicatory mechanism. This mechanism ensures that builders adhere to regulations and deliver quality construction. Ultimately protecting the interests of homebuyers. It promotes transparency and accountability in the real estate sector. Fostering trust between buyers and developers.

Rules and Regulations for Buying Property in Jammu

The Center has put Jammu and Kashmir on India’s real estate map by allowing any Indian citizen to buy land in the union territory. Until a year ago, residents could not afford to buy real estate. But now the rules and regulations have changed.

On October 27, the government deleted the term “permanent resident of the state” from Section 17 of the Jammu & Kashmir Development Act. This section deals with the sale of land when the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Third Order, 2020, was published.

Earlier, only permanent residents were allowed to reside in Jammu and Kashmir. Non-residents can re-invest in Jammu & Kashmir after the abrogation of special status in 2019. As a result, the United States has become a promising real estate market.

Guidelines for Buying Real Estate in Jammu and Kashmir

In the field of acquiring property in Jammu, certain established principles and rules must be followed to ensure a smooth and legal transaction. Changes in Land Law How Land Laws in Jammu and Kashmir Under the unusual status of Jammu. The residents of the region, known as “permanent residents,” have certain rights, such as the right to own land in the former state.

Non-resident Indians were not allowed to buy land there. Before August 2019, land rights in Jammu and Kashmir were protected and upheld by Article 35A. According to the next four land rules, permanent residents have special rights over various lands located in Jammu and Kashmir.

  • 1938 Jammu and Kashmir Land Alienation Act
  • Abolition of Large Landlords Act of 1950
  • The Land Grant Act of 1960 in Jammu and Kashmir
  • 1976 Agrarian Reforms in Jammu and Kashmir Act

Agricultural Land Can Be Sold With Govt Permission

Agricultural Land Can Be Sold Or Repurposed With government PermissionIn Jammu and Kashmir, land laws underwent changes once Article 370 was repealed. This means that current laws no longer provide permanent residents with their previous status. The Big Landed Estates Abolition Act and the Jammu & Kashmir Alienation of Land Act have now been removed.

Section modifications have taken place in the Jammu and Kashmir Land Grants Act and the Jammu and Kashmir Agrarian Reforms Act to eliminate the “permanent resident” requirement for land lease and transfer. The Jammu &Kashmir Development Act of 1970 was utilized to make amendments to the above-mentioned laws. Under this new legislation, any lands declared as “development zones” by the government will not be subject to the existing land laws.

Real Estate Market in Jammu and Kashmir

Shokat Shah, owner of Green Building Estates, believes that the beautiful Kashmir Valley makes a great second home location. This opens up new investment opportunities as developers look for land to construct multi-storied buildings. But the real estate in this area is developing rapidly. The government is pushing for development in Jammu and Kashmir. As some favorable industrial policies are introduced, the housing market in Kashmir may see some price increases.

The resort and luxury hotel plans of the Maharashtra and Karnataka governments, respectively, will boost tourism and attract more private investors. All these changes are making Jammu and Kashmir a hot spot for real estate. Benefiting the hospitality and tourism industries. However, a huge rush of buyers is unlikely to be expected at a time of tension between locals and the government.

“Permanent Resident” Status Has Been Abolished in Jammu and Kashmir

Currently, permanent residents do not retain their status under existing laws. The Abolition of Big Landlords Act and the Jammu and Kashmir Alienation of Land Act were repealed. Amendments to the Jammu and Kashmir Land Grants Act. The Jammu and Kashmir Agrarian Reforms removed the requirement of “permanent resident” status in regulating land leases and transfers.

The Jammu and Kashmir Development Act of 1970, was used to amend these laws. Under the new law, “development zones” declared by the govt are not bound by existing land laws. This allowed for easier acquisition of land for development projects, such as infrastructure and industrial expansion.

The Act aimed to accelerate economic growth in the region by streamlining the process of land acquisition and development. The Act also aimed to attract more investment in the region by providing a conducive environment for development. This shift in policy was seen as a way to modernize and industrialize Jammu and Kashmir.

Agricultural Land Rules in J&K: Can You Buy Farming Land?

Restrictions on non-agriculturists and options for land-use conversion

Who Cannot Buy Agricultural Land?

  • Non-agriculturists, including most urban dwellers and out-of-state individuals, cannot directly purchase agricultural land in J&K.
  • This restriction is intended to protect local farming communities and prevent land misuse.

Who Can Buy?

  • State-designated agriculturists
  • Persons granted permission under special cases by the Revenue Department
  • Companies or institutions for public infrastructure or industrial projects (with approval)

Can the Land Be Converted?

Yes, land-use conversion is possible:

  • Submit an application to the District Collector or Revenue Department.
  • Prove that the converted use (residential, commercial, industrial) aligns with the Master Plan.
  • Once approved, the land is reclassified, and purchase can proceed under regular norms.

Property Laws in Jammu and Kashmir: What Changed?

In October 2020, the Indian government introduced comprehensive land law reforms in Jammu & Kashmir and Ladakh, replacing several old laws that were unique to the former state. The key laws introduced or amended include

  • The Jammu and Kashmir Development Act, 1970 (amended)
  • The Jammu and Kashmir Land Revenue Act
  • The Real Estate (Regulation and Development) Act (RERA)
  • Repeal of over 150 state-specific laws that restricted non-residents

What Was the Law Before Article 370 Was Removed?

A Clear Guide to the Major Legal Shifts in Property Ownership and Investment. The abrogation of Article 370 on August 5, 2019, marked a historic turning point for Jammu & Kashmir. Among the most impactful changes were the amendments to land laws, which opened the door for broader ownership and investment across the region.

Under Article 370 and Article 35A:

  • Only permanent residents of Jammu & Kashmir could own property.
  • Outsiders, including other Indian citizens, were not allowed to purchase land or real estate.
  • Property rights were governed by J&K’s own constitution and state-specific laws.
  • Special protections were in place for agricultural land and local landowners.

What Changed After Article 370 Was Repealed?

Post-abrogation, the Indian Parliament extended central laws to J&K and repealed or amended over 150 state-specific laws.

Key reforms in October 2020 included changes to:

  • The Jammu and Kashmir Land Revenue Act
  • The Jammu and Kashmir Development Act
  • Several land ownership and tenancy laws

Conclusion

The government has laid down rules and regulations for buying property in Jammu and Kashmir. Buyers should familiarize themselves with these regulations to ensure a smooth and legal property transaction in this region. The buyers should also conduct thorough research on the property market in the region to make informed decisions. By following these guidelines, buyers can avoid potential pitfalls and have a successful property-buying experience in Jammu and Kashmir.

Also read
Jammu and Kashmir: Stamp Duty and Registration Charges in 2024
Except for agricultural land, in municipal areas of J&K anyone is free to purchase property, even if he is not a resident of the state. The move follows the withdrawal of J&K’s special status granted under Article 370 of the Constitution on August 5, 2019, and the bifurcation of the state into two Union Territories (UTs) of J&K and Ladakh.

Jammu and Kashmir Property Tax Has Announced a New Tax Policy
Property tax in Jammu and Kashmir is determined based on the Taxable Annual Value (TAV). The TAV is calculated by multiplying the property’s Annual Rental Value (ARV) by a certain percentage. The local government determines this percentage.

Frequently Asked Questions

Q. Is Article 370 removed from Jammu and Kashmir?

A. The Indian Parliament passed the repeal of Article 370 with the support of an overwhelming majority. It not only attracted the support of Hindu nationalist parties like the BJP but also many other Indian political parties that were generally opposed to the BJP.

Q. Who can buy land in Jammu Kashmir?

A. According to the new guidelines issued by the Ministry of Home Affairs, no residence or permanent residence certificate is required to purchase non-agricultural land in Jammu and Kashmir.

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