Before buying a land, we have to ensure that the land has a clear and marketable title. The first thing
is to find out the tenure, legal right of the holder of the land in government records. The tenure or
possession right could be freehold, leasehold or may be held under a government grant or 'sanad'.
Freehold land is always most preferable. The seller should provide all the necessary documents to
the buyer.
Title deeds
The first step is to see the title deed of the land which you are going to buy. Confirm whether the
land is in the name of the seller and that the full right to sell the land lies with only him and no other
person. Don't be satisfied with the Xerox copy of the title deed. Insist on seeing the Original Deed.
Sometimes the seller may have taken a loan by pledging the original deed. It also needs checking
whether the seller has permitted any entry/access to others through this land and whether any
other fact has been suppressed/left undisclosed by the owner of the land. It is better to get the
original deed examined by a lawyer. Along with the title deed, the buyer can also demand to see the
previous deeds of the land available with the seller.
Tax receipt and bills
Property taxes which are due to the government or municipality are a first charge on the property
and, therefore, enquiries must next be made in government and municipal offices to ascertain
whether all taxes have been paid up to date. The owner should also possess the latest tax paid
receipts, which you may inspect. Enquiries should also be made in various departments of the
municipality to ascertain whether any notices or requisitions relating to the property have been
issued and are outstanding and not yet complied with.
While inspecting the property tax receipt, it can be noted that there are two columns in the tax
receipt. Make sure that the name entered in the owner's column is correct. The second column will
be for the name of the one who paid the tax. Sometime the owner may not have the tax receipt with
him, in such cases, contact the village office with the survey no. of the land and confirm the original
owner of the land. If you are buying a house along with the property, then the house tax receipt
should also be checked. Also ensure that the electricity and water bills are up-to-date and if there
any is balance payment to be made, ensure that it is made by the seller.
Encumbrance Certificate
Before buying any land or house, it is important to confirm that the land does not have any legal
dues. It is available as a certificate called encumbrance from the sub registrar office where the deed
has been registered, stating that the said land does not have any legal dues and complaints. The
encumbrance certificate for the past thirteen years should be taken or for more clarification, you
could demand 30 years encumbrance certificate to be checked. If you still have anymore doubts, you
can take a Possession Certificate of the ownership of the particular land, which is available from the
village office.
Pledged land
Some people may have taken loan from the bank by pledging their land. Ensure that the seller has
paid back all the amounts due. Don't get satisfied with the receipt of the payment made. A release
certificate from the bank is necessary to release all the debts over the land legally. You could buy a
land without the release certificate. But if you want to take a loan in future, the release certificate is
a must.
Measuring the land
It is advisable to measure the land before registering the land in your name. Ensure that the
measurements of the plot and its borders are accurate. You can do this with the help of a recognized
surveyor. This will avoid a lot of problems in the future. You could also take the Survey Sketch of the
land from the Survey Department and compare for accuracy.
More than one owner
In some cases, the land will be owned by more than one people. So before registering, check if there
is more than one owner, and if there is, get release certificate from the other people involved.
Buying land from NRI land owners
A person staying abroad can also sell his land in India by giving a Power of Attorney to a third person
authorizing him the right to sell the land on his behalf. But in such cases, the power of attorney
should be witnessed and duly signed by an officer in the Indian embassy in his province. There is no
legal support for Power of attorney signed by a notary public.
Agreement
Once all the matters, financial/otherwise are settled between the parties, it is better to give an
advance and write an agreement. This ensures that the owner does not change his word regarding
the cost as well as make a sale to someone else who offers more money. The agreement should be
written in Rs.50 stamp paper. The agreement should state the actual cost, the advance amount, the
time span within which the actual sale should take place and how to proceed in case of any default
from either parties, to cover the loss. The agreement can be prepared by a lawyer and should be
signed by both the parties and two witnesses. After signing the agreement if one of the parties make
a default, the other party can take legal action against him.
Registration
The land can be registered in a sub registrar office, after preparing the title deed including all the
relevant information. You could get the title deed written by a government licensed Document
writer. Even lawyers can prepare the deed, but the document can only be computer printed or
typed, not handwritten. Handwritten documents can be prepared by only those who hold the
scribe license. A draft should be prepared before actually writing the document in stamp paper.
Make sure all the details mentioned are accurate. If there is incorrectness in the document after
registering, a secondary document with the correct details has to be registered and depending on
the incorrectness, the registration expenses will be repeated. Make sure that the deed is registered
within the time limit mentioned in the agreement. Original title deed, Previous deeds, Property/
House Tax receipts, Torence Plan (optional) etc plus two witnesses are needed for registering the
property. Torence plan is a detailed plan of the property prepared by a licensed Surveyor which will
have accurate details of the measurements including width, length, borders etc. This plan is needed
only in some specific areas. For land costing more than five lakhs, the seller should submit either his
Pan card or Form Number 16 during registration. The expenses involved during registration include
Stamp Duty, registration fees, Document writer’s/ lawyer’s fees etc. The stamp duty will depend
on the cost of the property and varies from Municipality to Corporation to Panchayat. In addition
you would be charged as a certain registration fees. Currently it is 2%. Document writer’s fees also
depend on the cost of the property and varies with individuals. There is a percentage prescribed by
the government as Document writer’s fee and they cannot charge more than the prescribed limit.
After registration, the registered document will be received after 2-3 weeks, from the registrar
office.
The whole legal procedure of buying the property will be complete only if the new owners name is
added in the village office records. An application can be made along with the copy of the registered
deed to the Village office to get this done.
is to find out the tenure, legal right of the holder of the land in government records. The tenure or
possession right could be freehold, leasehold or may be held under a government grant or 'sanad'.
Freehold land is always most preferable. The seller should provide all the necessary documents to
the buyer.
Title deeds
The first step is to see the title deed of the land which you are going to buy. Confirm whether the
land is in the name of the seller and that the full right to sell the land lies with only him and no other
person. Don't be satisfied with the Xerox copy of the title deed. Insist on seeing the Original Deed.
Sometimes the seller may have taken a loan by pledging the original deed. It also needs checking
whether the seller has permitted any entry/access to others through this land and whether any
other fact has been suppressed/left undisclosed by the owner of the land. It is better to get the
original deed examined by a lawyer. Along with the title deed, the buyer can also demand to see the
previous deeds of the land available with the seller.
Tax receipt and bills
Property taxes which are due to the government or municipality are a first charge on the property
and, therefore, enquiries must next be made in government and municipal offices to ascertain
whether all taxes have been paid up to date. The owner should also possess the latest tax paid
receipts, which you may inspect. Enquiries should also be made in various departments of the
municipality to ascertain whether any notices or requisitions relating to the property have been
issued and are outstanding and not yet complied with.
While inspecting the property tax receipt, it can be noted that there are two columns in the tax
receipt. Make sure that the name entered in the owner's column is correct. The second column will
be for the name of the one who paid the tax. Sometime the owner may not have the tax receipt with
him, in such cases, contact the village office with the survey no. of the land and confirm the original
owner of the land. If you are buying a house along with the property, then the house tax receipt
should also be checked. Also ensure that the electricity and water bills are up-to-date and if there
any is balance payment to be made, ensure that it is made by the seller.
Encumbrance Certificate
Before buying any land or house, it is important to confirm that the land does not have any legal
dues. It is available as a certificate called encumbrance from the sub registrar office where the deed
has been registered, stating that the said land does not have any legal dues and complaints. The
encumbrance certificate for the past thirteen years should be taken or for more clarification, you
could demand 30 years encumbrance certificate to be checked. If you still have anymore doubts, you
can take a Possession Certificate of the ownership of the particular land, which is available from the
village office.
Pledged land
Some people may have taken loan from the bank by pledging their land. Ensure that the seller has
paid back all the amounts due. Don't get satisfied with the receipt of the payment made. A release
certificate from the bank is necessary to release all the debts over the land legally. You could buy a
land without the release certificate. But if you want to take a loan in future, the release certificate is
a must.
Measuring the land
It is advisable to measure the land before registering the land in your name. Ensure that the
measurements of the plot and its borders are accurate. You can do this with the help of a recognized
surveyor. This will avoid a lot of problems in the future. You could also take the Survey Sketch of the
land from the Survey Department and compare for accuracy.
More than one owner
In some cases, the land will be owned by more than one people. So before registering, check if there
is more than one owner, and if there is, get release certificate from the other people involved.
Buying land from NRI land owners
A person staying abroad can also sell his land in India by giving a Power of Attorney to a third person
authorizing him the right to sell the land on his behalf. But in such cases, the power of attorney
should be witnessed and duly signed by an officer in the Indian embassy in his province. There is no
legal support for Power of attorney signed by a notary public.
Agreement
Once all the matters, financial/otherwise are settled between the parties, it is better to give an
advance and write an agreement. This ensures that the owner does not change his word regarding
the cost as well as make a sale to someone else who offers more money. The agreement should be
written in Rs.50 stamp paper. The agreement should state the actual cost, the advance amount, the
time span within which the actual sale should take place and how to proceed in case of any default
from either parties, to cover the loss. The agreement can be prepared by a lawyer and should be
signed by both the parties and two witnesses. After signing the agreement if one of the parties make
a default, the other party can take legal action against him.
Registration
The land can be registered in a sub registrar office, after preparing the title deed including all the
relevant information. You could get the title deed written by a government licensed Document
writer. Even lawyers can prepare the deed, but the document can only be computer printed or
typed, not handwritten. Handwritten documents can be prepared by only those who hold the
scribe license. A draft should be prepared before actually writing the document in stamp paper.
Make sure all the details mentioned are accurate. If there is incorrectness in the document after
registering, a secondary document with the correct details has to be registered and depending on
the incorrectness, the registration expenses will be repeated. Make sure that the deed is registered
within the time limit mentioned in the agreement. Original title deed, Previous deeds, Property/
House Tax receipts, Torence Plan (optional) etc plus two witnesses are needed for registering the
property. Torence plan is a detailed plan of the property prepared by a licensed Surveyor which will
have accurate details of the measurements including width, length, borders etc. This plan is needed
only in some specific areas. For land costing more than five lakhs, the seller should submit either his
Pan card or Form Number 16 during registration. The expenses involved during registration include
Stamp Duty, registration fees, Document writer’s/ lawyer’s fees etc. The stamp duty will depend
on the cost of the property and varies from Municipality to Corporation to Panchayat. In addition
you would be charged as a certain registration fees. Currently it is 2%. Document writer’s fees also
depend on the cost of the property and varies with individuals. There is a percentage prescribed by
the government as Document writer’s fee and they cannot charge more than the prescribed limit.
After registration, the registered document will be received after 2-3 weeks, from the registrar
office.
The whole legal procedure of buying the property will be complete only if the new owners name is
added in the village office records. An application can be made along with the copy of the registered
deed to the Village office to get this done.
About The Author Of This Article:
Hello, My Name Is Muhammad Hassan And I Am The CEO, Founder Of EXEIdeas International. I Blogs At EXEIdeas And Also Love Coding And Designing. Currently I Design Some Work For You That You Can Check At EXEIdeas International Official Site. We Also Have A Lots Of Project Currently Live Oneline That You Can Also Check On Our Official Site.
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