Leasing a Tourism Resort in Kerala: A Step-by-Step Guide

Leasing a tourism resort in Kerala involves adherence to legal procedures to ensure compliance with state regulations and safeguard the interests of both parties. Below is a detailed guide:

1. Due Diligence

Property Verification

 Confirm the ownership of the resort and verify that it is free from legal disputes or encumbrances.

Licenses and Permits

Ensure the resort holds all required licenses, including those from the local municipality, health department, Kerala State Pollution Control Board, and as per the Kerala Places of Public Resort Act, 1963.

2. Drafting the Lease Agreement Terms and Conditions Draft a comprehensive lease agreement that clearly specifies the lease duration, rent amount, payment schedules, maintenance responsibilities, and termination clauses.

 Compliance with Rent Control Laws Ensure the lease adheres to the Kerala Buildings (Lease and Rent Control) Act, 1965, which defines the rights and responsibilities of both landlords and tenants.

3. Registration of the Lease Agreement

    Register the lease deed with the local Sub-Registrar Office to make it legally binding.

    Pay applicable stamp duty and registration fees, calculated based on the lease term and rent amount.

4. Transfer or Renewal of Licenses

Operation Licenses

If the resort’s existing licenses are non-transferable, apply for new licenses in the lessee's name. These may include health permits, fire safety certificates, and tourism department approvals.

 Tourism Department Registration

Register the resort with the Kerala Tourism Department to gain recognition and access to incentives.

 Health and Safety Certifications

Obtain certifications from local authorities for health and safety compliance.

Pollution Control Board Clearance

    Secure necessary approvals from the Kerala State Pollution Control Board.

5. Compliance with Local Regulations

Adhere to local municipal or panchayat regulations.

 Obtain permits for any renovations, alterations, or changes in property use.

6. Financial Considerations

Security Deposit

Negotiate and document a fair security deposit in the lease agreement.

 Rent Payment Terms

Clearly outline rent payment schedules and escalation clauses, if any.

GST Registration

If applicable, register for Goods and Services Tax (GST) for resort operations that meet the taxation threshold.

Insurance Coverage

Secure appropriate insurance for the property, assets, and liability to mitigate potential risks.

7. Legal Assistance

Professional Guidance

Engage legal experts with experience in tourism and property law to ensure compliance with all applicable regulations and streamline the leasing process.

By diligently following these steps and addressing all legal, financial, and regulatory requirements, leasing a tourism resort in Kerala can be executed effectively and securely.