Buying a plot of land? Read this first

It is advisable for land buyers to check for the following factors thoroughly and even get them examined by a legal expert before making the actual purchase:

The Title Deed: The documents of title should be studied very carefully as any shortfall may lead to a defective title. Check if the deed title is in the name of the seller and he has the full right to sell it. Insist upon looking at the original and not just a photocopy. Clear title to a property is one of the most important factors to be considered before purchase.

Mother Deed: Ownership of property changes hands through a series of transactions. It is very important to trace the ownership of a property, especially when it is either being purchased or is being offered as a security.

Mother deed acts as the main legal document and evidence of ownership of a property. It also acts as the main document for further sale by the buyer as it establishes proof of his ownership. Mother deed is an important document in a property transaction. This is the document that traces the origin of property as well as all other relevant conveyance deeds.

It is the main document to determine ownership of a property. Tracing ownerships should always begin with scrutiny of the earliest document recorded. If such documents are not made available, certified copies have to be obtained from the registering authorities. This process should not be ignored. Earlier documents are called mother or parent documents.

Subsequently, a property generally changes hands by various modes like sale, gift, partition, and inheritance. Each change of ownership has to be traced with the help of a transfer document. The sequence should be in chronological order, continuous and unbroken. Any missing link has to be carefully scrutinized by referring to the records at registering offices, revenue records and recitals in other documents, and if possible, by ascertaining from the parties concerned. The flow should be traced up to the present owner. The right of each intermediate owner to transfer the property should be thoroughly checked.

Common Legal Disputes: Before you buy land, it is very critical to ascertain that Land is free from any legal dispute. Some of the common legal disputes related to land are Land is Mortgaged, Marking of Land Boundary, Agricultural Land, Tribal land, Land notified for Government Projects or Special purpose, Claim of legal Heirs, etc.

Title search before purchasing a property in India: Title search is an important exercise that should be undertaken by the buyer before acquiring a property in India as it will ensure the buyer that title is clear, marketable and free from encumbrances and liabilities. This will safeguard the interest of the buyer and mitigate the risks involved in property transactions. Encumbrance Certificate can be procured from the sub-registrar's office where the deed is registered.

Title search process

1.    Trace the title of the property to buy from the title deeds and revenue records. In order to ascertain the origin of the property, one must scrutinize the title documents for the last 40-60 years.

2.    In order to ascertain any adverse possessions or conflicting claims against the buyer, documents for the last 12 years should be thoroughly examined.

3.    If the property is illegally acquired and its illegal title is against the government, then documents for the last 30 years are to be searched and examined.

4.    After scrutinizing the origin of title, there is a need to find out how the property has been transferred from previous owners to the current one i.e. by way of inheritance, gift, sale, mortgaged, etc.

5.    It also includes checking of all the necessary documents to ensure that they have paid the applicable statutory clearances and possess latest receipts of tax payments and encumbrance certificates.

Physical measurements of the Property: Land grabbing is a common problem. There is a need to check the identity and physical measurements of the property as per the title deed. Hire a Chartered surveyor to certify the boundary of land. He will match the actual dimension with an approved sketch from the survey department in the presence of you and demark it. Drainage system, flood risks, and overhead high tension power lines are additional things to consider before purchase. It is always best to be on the safe side and to seek professional advice.

Classification of the land: Law prohibits the purchase of certain categories of land. Find out whether the land which you are intending to buy falls under any of the prohibited categories. Government lands, lands assigned to the landless poor by government and forest land are the few categories of land which can’t be purchased. Only tribal can purchase land in Scheduled Areas (Tribal areas). The vast amount of land in India is agricultural in nature. Any land which is designated as an agricultural land can’t be used for residential purposes, if it is so done, then it will be rendered illegal. Therefore, if you have reasons to believe that the plot you are purchasing used to be an agricultural property, ensure that you are provided with a conversion certificate issued by the appropriate revenue authorities. A conversion certificate is needed to change the purpose of land use from agricultural to non-agricultural. Further, the competent revenue authority requests the Department of Town and Country Planning to issue an NOC for the conversion of land for residential purposes. There are a certain set of documents to be submitted by the owner to acquire a Conversion Certificate.

The documents required to obtain a Conversion Certificate are,

R.T.C extracts

Village map, land sketch

Certified copy of the land tribunal, zonal certificate,

Title deed and Mutation Records / Parcha copy.

No dues certificate by village accountant and NOC from Panchayat Pradhan.

Power of Attorney: Many times property is sold through a person holding power of attorney (POA) on behalf of the owner. This POA should be closely scrutinized to ensure that it is properly executed. This aspect should also be considered. For example, if the land is leasehold and the residue tenure of lease is short and if there is no provision for renewal on old rent, additional ground rent may be payable by the purchaser on renewal of the lease. It is also possible that there may be no renewal clause at all.

Property Tax Receipts and Bills: Receipts for property tax bills ensure that taxes for the property are paid up-to-date to the government/municipality/ Panchayat. It is therefore important for the buyer to make inquiries with the government/municipal authorities to ensure that all the dues are cleared by the seller. The buyer should ask the seller for the latest original tax paid receipts and bills and check the details of the owner’s name, the tax payer’s name, and the date of payment on the receipt. If the owner does not have the tax receipt, the buyer can contact the municipal body along with the survey number of the property to confirm the ownership of the land. Nevertheless, the buyer should also ensure that other bills such as the water bill, electricity bill, etc. are paid up-to-date.

Potential of the Plot: When you are investing in a plot, it is important to understand its financial landscape and have a look at the bigger picture.

Properties located inside the city limits have higher escalation value compared to properties located far away from the city or on the outskirts, this may not remain the same. As cities expand, outlying areas start to appreciate. 　

For villa in the plot you are purchasing, the plot must be located in an area that is suitable for villa construction. Land alongside the beach may be too marshy to be considered as a villa plot. Similarly, if the land is located alongside a hilly terrain, it should not be too uneven to construct the construction in the property. Check if the plot is on flat land or a slope. Also, check for arrangements such as water and other basic amenities.

Proximity to school and the hospital will be added advantages.

Documents need to be taken back: Once the property is purchased do remember to collect all the previous original documents from seller

Original Title deed / Gift Deed / Sale Deed /Partition deed should be taken by the buyer from the seller.

Original property tax receipt and other bills relating to the plot.

Receipt from payment of stamp duty charges.

Mutation Certificates.

Useful links

Websites to check online land records
Sr No	State	Website
1	Gujarat	https://anyror.gujarat.gov.in
2	Maharashtra	https://www.mahabhulekh.maharashtra.gov.in/
3	Tamilnadu	http://eservices.tn.gov.in
4	Karnataka	http://bhoomi.karnataka.gov.in/landrecordsonweb/
5	Haryana	jamabandi.nic.in
6	West Bengal	https://banglarbhumi.gov.in/BanglarBhumi/KnowYourProperty.action
7	Punjab	http://plrs.org.in
8	Chhattisgarh	http://cg.nic.in/cglrc
9	Orissa	http://bhulekh.ori.nic.in
10	Bihar	http://lrc.bih.nic.in
11	Rajashtan	http://apnakhata.raj.nic.in
12	Uttar Pradesh	http://bhulekh.up.nic.in
13	Madhya Pradesh	landrecords.mp.gov.in
14	Uttarakhand	http://devbhoomi.uk.gov.in
15	PAN India	https://www.cersai.org.in/CERSAI/IBACRPageLoaderServlet

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