Terms & Conditions

First Things First

• The legal status of the land should be confirmed above anything.
• Advance should be made only after confirmation of legal documents.

Before Buying a Land

• Check for clear marketable title.
• Find out the tenure or possession right (Freehold / Leasehold / Grant or Sanad). Note: Freehold is always preferred.
• Legal right of the holder of the land in Government Records. The seller should provide these documents to the buyer.

Title Deeds

• Confirm that the land is in the name of the seller. The right to sell lies only with the seller.
• Always request the original deed. Do not entertain photocopies.
• Have a lawyer approve the original deed.
• Check for any suppressed or undisclosed facts in the document.
• Previous deeds of the land can also be verified.

Tax Receipts and Bills

• Property taxes due to the government and municipality must be confirmed with proof of bills and receipts.
• Up-to-date tax bills must be checked for owner's name and tax payer's name.
• If the owner does not have the tax receipt, contact the village office with the survey number of the land to confirm the original owner.
• If buying a house with property, the house tax receipt should also be checked.
• Check for water tax and electricity bills; if any balance exists, request the seller to clear it.

Encumbrance Certificate (EC)

• Confirm that the land does not have any legal dues.
• The EC can be obtained from the sub-registrar office where the deed is registered.
• The EC should state that the land does not have any legal dues or complaints.
• The EC should be obtained for at least 13 years; for more clarity, 30 years is recommended.
• A possession certificate can be obtained from the village office in case of doubts.

Pledged Land

• When buying pledged land, ensure the seller has repaid all amounts due.
• Request the release certificate from the bank to confirm that debts are cleared.
• Land can be bought without the release certificate, but obtaining a loan in the future may not be possible without it.
• If the land is owned by more than one owner, obtain RC from all other owners involved.

Measuring a Land

• It is advisable to measure the land before registering it in your name.
• Ensure measurements of the plot and its borders are accurate using a recognised surveyor.
• Obtain a survey sketch from the survey department and compare for accuracy.

Buying Land from NRI Owners

• An NRI can sell land in India by giving Power of Attorney to a third person.
• The Power of Attorney must be witnessed and duly signed by an officer in the Indian Embassy in the NRI's province.
• No legal support can be claimed for Power of Attorney signed by a notary public.

Agreement

• Once all financial and other matters are settled, give an advance and write an agreement to prevent any change in dealings.
• The agreement should be written on Rs. 50 stamp paper.
• The agreement must state the actual cost, advance amount, time span for the actual sale, and procedures in case of default.
• The agreement should be signed by both parties and two witnesses. A default by either party entitles the other to take legal action.

Registration

• Land can be registered at a sub-registrar office after preparing the title deed.
• A draft should be prepared before committing the document to stamp paper.
• Ensure all details mentioned are accurate; errors post-registration require a secondary document with additional registration expenses.
• The deed must be registered within the time limit mentioned in the agreement.
• Original title deed, previous deeds, property/house tax receipts, and two witnesses are required for registration.
• For land costing more than ₹5 lakh, the seller must submit a PAN Card or Form 16 during registration.
• Stamp Duty: Panchayat – 4%, Municipality – 5%, Corporation – 6% of property cost.
• Registration fees: 2% of property cost; Document writer's fees are governed by government-prescribed limits.
• The registered document is received after 2–3 weeks from the registrar office.

I. Acquisition of Immovable Property in India

II. Transfer of Immovable Property in India

III. Mode of Payment for Purchase