T h i n g s y o u “ m u s t ” c h e c k b e f o r e y o u b u y l a n d !

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.

C h e c k t h e " T i t l e D e e d / C e r t i f i c a t e O f

T i t l e " o f t h e l a n d :

What is a 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.

A s k f o r t h e " E n c u m b r a n c e C e r t i f i c a t e " :

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 sub-

registrars 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.

I n t h e c a s e o f " P l e d g e d L a n d " :

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.

M e a s u r e t h e l a n d :

Get a recognized surveyor to measure the land and see

that the dimensions, area, borders etc. are accurate as

stated by the seller.

I f t h e r e i s m o r e t h e n o n e o w n e r :

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.

I f t h e o w n e r i s a n N R I :

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 IndiaPosted by admin at 11:20 am 1 Comments Print

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 person’s 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 owner’s 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, it’s 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, it’s 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 doesn’t 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 it’s

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 haven’t 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 don’t 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 developer’s 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

1 Sale Deed, Title Deed, Mother Deed, Conveyance Deed

2 RTC Extracts

3 Katha Certificates and Extracts

4 Mutation Registration Extracts

5 Joint Development Agreement

6 Power of Attorney

7 Sanctioned Building plan

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

9 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, let’s 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.