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What steps are to be taken before buying Land in India ?

Written by Akash Kalshetty

3 min read • Published on Dec 24, 2024

What steps are to be taken before buying Land in India ?
  1. Evaluate Location and Zoning Regulations
    Choosing the right location is essential. Consider proximity to infrastructure like roads, schools, hospitals, and markets. Also, check the area’s potential for development. Zoning laws regulate land use (residential, agricultural, or commercial), so ensure the land’s zoning fits your intended use. Agricultural land conversion for residential or commercial use can be restrictive and requires local authority approval.
  2. Verify Land-Use Conversion Approvals
    If you’re buying agricultural land with plans to use it for non-agricultural purposes, confirm that the necessary land-use conversion approvals have been granted. Using agricultural land for other purposes without this approval is illegal in many states. The conversion process varies by state, and failure to obtain approval can result in legal penalties.
  3. Conduct a Title Search and Verify Ownership
    A title search ensures the land has a clear, undisputed ownership record. Obtain certified copies of the title from the local sub-registrar’s office and check for legal disputes. Key documents to review include the encumbrance certificate, sale deed, and relevant local ownership records. Legal consultation is recommended to verify these documents.
  4. Conduct a Physical Survey and Boundary Verification
    A licensed surveyor should confirm that the land’s boundaries match the legal documents. They will also check for encroachments and ensure the land has proper access to public roads, which is crucial for development or future use.
  5. Verify Land Taxes and Other Legal Dues
    Ensure the seller has paid all land taxes and legal dues. Request tax receipts and verify these with local authorities. Unpaid dues can become a liability for the new buyer, so this step is critical.
  6. Verify Encumbrance and Mutation Records
    Check the encumbrance certificate to confirm the land is free from financial liabilities like loans or mortgages. Ensure the mutation record reflects the updated ownership history, as this helps in future tax payments and ownership disputes.
  7. Obtain an Independent Land Valuation
    Hiring an independent appraiser helps assess if the land’s asking price is in line with market rates. A valuation takes into account factors such as location, infrastructure, and future development potential.
  8. Enter into a Legally Binding Agreement for Sale
    Before finalizing the transaction, draft a legally binding sale agreement. This should include buyer and seller details, the agreed price, payment terms, and timelines for transferring ownership. Have a lawyer review the agreement to ensure it’s comprehensive and legally enforceable.
  9. Register the Sale Deed and Pay Stamp Duty
    Once the sale is confirmed, register the sale deed at the sub-registrar’s office to transfer ownership. Both parties must present identification and the sale deed. Pay the required stamp duty and registration fees, which vary by state and are usually based on the land’s value.

Conclusion

The land acquisition process in India is detailed and requires thorough legal and procedural compliance. Each step, from evaluating the location to registering the sale deed, is crucial in protecting your interests and ensuring a smooth ownership transfer.

Seek Legal Assistance Throughout the Process
Given the complexities of land transactions and restrictions in some states (e.g., only farmers can purchase agricultural land), consulting a property lawyer is advisable. They will help navigate legal hurdles, particularly in states like Karnataka and Maharashtra, where buying agricultural land is restricted.



Published on Dec 24, 2024

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