Things you must check before you buy land!

The most important thing to do before you buy a

particular piece of land you are interested in is to see
whether the land can be sold by the person who is
selling it. Just like how "Bunty & Bubly" sold the Taj
Mahal, you do not want to be on the other side of a
"Bluffmaster's" brilliant plans.
So before you even take the first step towards buying
the land you are interested in, you got to check a few
things.

Check the "Title Deed / Certificate Of

Title" of the land:
What

is

title

deed?

A title deed is "a legal document proving a person's

right to property" as defined by a law dictionary. An
advocate prepares a title deed after studying and
scrutinizing the property and verifying that all is in
order.
So as a buyer what you need to do is ask the owner of
the land you wish to purchase for the tile deed and
review it properly. Do not accept a xerox copy of the

deed. Ask for the original "Title Deed". Some times the
seller might have taken a loan and given in the original
deed.
You need to make sure through the title deed that the
land is in the name of the seller. Also you need to verify
that he has full right to sell the land and that he is the
sole owner of the land and no one else is. It would be
wise to get the title deed reviewed by a trusted lawyer
just to make sure that there are no loop holes.
As a buyer you may also ask for previous title deeds of
the land and get these verified too by a lawyer.

Ask for the "Encumbrance Certificate":

The

next

step

is

to

demand

an

"Encumbrance

Certificate". This is basically a certificate that says that

the land is not under any sort of legal dispute. The
encumbrance certificate can be obtained from the subregistrars office where the deed for the land has been
registered. The encumbrance certificate for the past 13
years should be taken and verified. You could even ask
for the encumbrance certificate of the last 30 years for
more clarification.

In the case of "Pledged Land":

Some people may have pledged their land previously
for taking a loan. In this case, it would be wise to
ensure that all the loan payments have been made and
that no amount is due. Ask, the seller to produce the
"Release Certificate" from the bank that is necessary to
release all debts over the land legally.

Measure the land:

Get a recognized surveyor to measure the land and see
that the dimensions, area, borders etc. are accurate as
stated by the seller.

If there is more then one owner:

If there is more than one owner, it would be wise to get
a "release certificate" from everyone involved before
going ahead with the process.

If the owner is an NRI:

If the owner of the land is a NRI, then the seller of the

land in India should be given "Power Of Attorney" to
sell the land on behalf of the NRI. The power of
attorney has to be signed by an officer of the Indian
embassy in the presence of a witness.
After all these initial checks are made you can go about
the actual process of buying the land.

10 Things you must check before buying property in India

Posted by admin at 11:20 am 1 CommentsPrint

Before buying any property or land in India, following legal documents or legalities should be
checked.
1.Title deed / certificate of title of the land:
When you are planning to buy any property, first and foremost thing is to check down the title deed
of that property. The property title deed is the legal document which proves the ownership of
property. The title deed presents certain rights and freedom to the person who holds it and such deeds
are required where person wants to transfer his ownership.It includes description of property along
with the persons name that holds it and multiple persons can be listed as owner as well. An official
seal is used to point out that the deed is recorded officially and normally it is signed by an owner(s)
and a witness who may be a regional officer or a clerk.
So as a buyer you have to ask for original deed not a Xerox because sometimes the seller might have
taken a loan and given in the original deed.
You should make sure through the title deed that the property is in the name of solely a seller and no
one else is and he has all rights to sell it. The best practice is to get reviewed the property deed by an
expert lawyer just to make sure that there are no loop holes.

As a good buyer you may also ask for a previous deed and get reviewed by a lawyer.
2.Encumbrance certificate
The encumbrance means any liabilities or charges created on any property in terms of any security of
any debit by property owner which is not discharged as on date. It might be held as security against
bank loan against property. Encumbrance certificate is necessary to check the title clearance of
property when buying any property. This legal document is issued by registering authority.
Government authorities and financial institutes like bank is requested encumbrance certificate for the
period of 13 years but you can ask for up to 30 years as well to be checked. Then after if you still
have any doubts, you can get possession certificate of ownership for a particular land from village
office.
3.Torence Plan
Torence plan is detailed plan of the property which is done by a licensed surveyor. All the
measurements details in it are accurate in terms of length, width, borders etc. this plan is necessary
for some specific areas only.
4.Pledged land
Many property owners take bank loan by pledging their property. So check they have paid the entire
amount due when you are going to buy that property. If they have paid entire amount due then bank
has issued them a Release certificate. Ask for the same as this release certificate is necessary
whenever you want to take any loan in future.
5.Property Tax receipts
Property taxes are first charge on property that is paid to government or municipality. So you have to
make enquiry in government and municipal offices to ensure whether all tax has been paid as on
date. You can ask for latest tax receipt from owner. In this way you can check whether any notices or
requisitions are issued on property or any tax due on the property. While you are checking property
tax receipt, there are two columns in it. One is for owners name so verify it and other is for tax
payer. In some cases, the tax receipt is not with owner. In such cases, you should contact village
office with the survey number of land and confirm the original owner.
6.Measurement of Property
It is prudential to measure the land before registering any property. In this way you can ensure the
measurements and borders of land are perfect and accurate. You should get done it with authorized

surveyor as you will avoid many problems coming in future. For the sake of your knowledge you
should take surveys sketch from survey department and do ensure the accuracy.
7.Owner or Owners
In some cases, its possible that there will be more than one owner of property. In that case get No
Objection Certificate or Release certificate from other owners.
8.NRI owner
An NRI can also sell his property in India. For this he gives Power of Attorney to third person whom
he give rights for selling the property on behalf of him. The most important thing is to ensure the
Power of Attorney is witnessed and is duly signed by an officer of the Indian Embassy. The Power of
Attorney signed by a notary public has no legal support I such a case.
9.Deed/ Sale Agreement
After sorting out all the things whether financial or any other between buyer and seller, its now turn
for advance payment and agreement between them. The agreement is done on 5o Rs stamp paper. It
includes the final actual amount, advance payment, time limit to pay due amount and how to pay in
installments, time indication when the actual sale should take place. It also includes what to do to
cover loss if one of buyer or seller makes default. This ensures that the seller does not defer cost in
any case after finalization and he doesnt sell to another party meanwhile. This agreement can be
done by an expert lawyer and signed by both the parties with two witnesses. After doing this
agreement, if one from both parties makes any default then another one should take legal action
against him.
10.Property Registration:
All property sales will be held illegal unless the transaction is by means of a sale deed duly stamped
and registered. After collecting and checking all the documents, you have to register land/ property at
the Sub-Registrar or the SDM (Sub District Magistrates) of your area.

Buying a Plot / Land? 5 Important Things To Know!

[Updated August 2014 See the table at the end of post. ]

Buying land in India for investment or for living is considered to be a major

move financially and emotionally. Before you invest a huge chunk of your
savings in a scheme that looks attractive or in a piece of land which looks its
going to boom in the next 5 years, watch where you step.
There is also another reason, why I am writing this article One of my close
friends recently got fleeced in a land deal and had to face heavy losses.
Here is a lowdown on the few things you must know before you buy land in
India hopefully it will help our readers to get a quick idea as to what all
things that you need to take care of

Has the property cleared legal titles?

Is your builder offering a pre launch scheme where the land has still not even
been given a clear NA (non agricultural) title?
You will need to make legal checks on the history of this land whether it still
holds rights or interests of any third party that could pop up after you buy
the land. Always make sure that you have had look at the ownership of land
papers. It will save you a lot of head-ache at later stage.

Have you understood your rights for delays?

Have you invested in a real estate project 2 years back and havent seen any
development in the property as promised? A lesson to be learnt from this is

that you must understand your rights on delay of construction before you
buy the property.
Invest in a construction-linked scheme where a start date and an end date
for construction is given. If possible, maintain a rapport with others
buyers so that in cases of emergency, you have backing in terms of
numbers to put pressure on the developer.

Is your property being built on reserved land?

You might think that developers would never do this. But dont be surprised if
the government comes knocking on the door of your new residence asking
you to evacuate because your house has been constructed on land which
was only reserved for government projects like irrigation of a site of
archeological research. Ensure that the proposed land is clear of such
reservations.

Have you checked the operating history of the developer?

Are you rushing to buy land in a scheme because it has thrown up some
grand visuals of Venetian villas being built on the banks of a river? Then
stop! Cross check the name and the operating history of your chosen
developer.
How many projects have they successfully competed in the past? Talk to
some buyers who may have purchased property with that developer. How
much possession of the developers land has been taken successfully? Have
they stuck to their promises of giving facilities in the plotted scheme?

How many documents does your developer need to clear

and have in hand?
There are many documents that you will need to ensure that your developer
has cleared in his files. From the 7/12 document which is the most critical
document of Title and proof of rights to land revenue tax receipts, Title Deed,
Stamp Duty document, Encumbrance certificate, Municipal Corporation
approvals, Release Certificate from the bank, Allotment letter and the
development agreement, the list is quite long. Make sure you have
correct legal advice on the whole gamut of approved documents
required.

Full List Of Documents Required While Buying a Land /

Plot {Updated 2014}

Sr. No

List of Documents to be verified

Sale Deed, Title Deed, Mother Deed, Conveyance Deed

RTC Extracts

Katha Certificates and Extracts

Mutation Registration Extracts

Joint Development Agreement

Power of Attorney

Sanctioned Building plan

NOC from Electricity Dept. / Pollution Dept. / Water Works / Port Authority

Sale & Construction agreement between developer/Builder & 1st owner

10

Copy of Possession letter from Builder / Developer

11

Any Loans on Property verification

12

Sale Agreement with the Seller

13

All Paid Tax receipts

14

EC up to date for last 13 years

15

Demand letter from Vendor before disbursement

16

NOC from Society / Building

17

No Due Certificate

18

Approved Plan

19

Layout approval plan

20

Auction Sale confirmation letter from local authority

21

Release Deed if any

22

Completion Certificate

23

Occupancy Certificate

24

Deed of Declaration

25

Latest Electricity Bill

Note: Please note some documents may applicable to you and some may be
not. Please verify
With the kind of controversies that the real estate domain has been plagued
with in the past decade, it is critical that you safeguard your interests first.
Until then, lets just hope that some kind of regulation enters the real estate
space with the RERA Bill which has been in the pipeline for many years.