purchase of piece of land.
drpkkhatri
(Querist) 25 January 2010
This query is : Resolved
sir,
I want ot purchase a piece of land for construction of house. What papers should I ask to seller for cheking genuiness of land to avoid fraud? what points should I take into consider?
n.k.sarin
(Expert) 25 January 2010
you must check the original title deed and on the basis of said title deed you must check the twelve year record of registrar office and also go to the spot and confirm from the surrounding about the possession and also take affidavit from the owner that there is no dispute pending in the court regarding the said land.And also check the revenue record regarding said land.
A V Vishal
(Expert) 25 January 2010
Before buying a land, a number of checks needs to be done to confirm that the land has a clear and marketable title. The first thing is to find out the tenure, legal right of the holder of the land in government records. The tenure or possession right could be freehold, leasehold or may be held under a government grant. Freehold land is always most preferable. The seller should provide all the necessary documents to the buyer.
Title deeds
The first step is to see the title deed of the land which you are going to buy. Confirm whether the land is in the name of the seller and that the full right to sell the land lies with only him and no other person. Don't be satisfied with the Xerox copy of the title deed. Insist on seeing the Original Deed. Sometimes the seller may have taken a loan by pledging the original deed. It also needs checking whether the seller has permitted any entry/access to others through this land and whether any other fact has been suppressed/left undisclosed by the owner of the land. It is better to get the original deed examined by a lawyer. Along with the title deed, the buyer can also demand to see the previous deeds of the land available with the seller.
Tax receipt and bills
Property taxes which are due to the government or municipality are a first charge on the property and, therefore, enquiries must next be made in government and municipal offices to ascertain whether all taxes have been paid up to date. The owner should also possess the latest tax paid receipts, which you may inspect. Enquiries should also be made in various departments of the municipality to ascertain whether any notices or requisitions relating to the property have been issued and are outstanding and not yet complied with.
While inspecting the property tax receipt, it can be noted that there are two columns in the tax receipt. Make sure that the name entered in the owner's column is correct. If you are buying a house along with the property, then the house tax receipt should also be checked. Also ensure that the electricity and water bills are up-to-date and if there any is balance payment to be made, ensure that it is made by the seller.
Encumbrance Certificate
Before buying any land or house, it is important to confirm that the land does not have any legal dues. It is available as a certificate called encumbrance from the sub registrar office where the deed has been registered, stating that the said land does not have any legal dues and complaints. The encumbrance certificate for the past thirteen years should be taken or for more clarification, you could demand 30 years encumbrance certificate to be checked. If you still have anymore doubts, you can take a Possession Certificate of the ownership of the particular land.
Pledged land
Some people may have taken loan from the bank by pledging their land. Ensure that the seller has paid back all the amounts due. Don't get satisfied with the receipt of the payment made. A release certificate from the bank is necessary to release all the debts over the land legally. You could buy a land without the release certificate. But if you want to take a loan in future, the release certificate is a must.
Measuring the land
It is advisable to measure the land before registering the land in your name. Ensure that the measurements of the plot and its borders are accurate. You can do this with the help of a recognized surveyor. This will avoid a lots of problems in the future. You could also take the Survey Sketch of the land from the Survey Department and compare for accuracy.
More than one owner
In some cases, the land will be owned by more than one people. So before registering, check if there is more than one owner, and if there is, get release certificate from the other people involved.
Buying land from NRI land owners
A person staying abroad can also sell his land in India by giving a Power of Attorney to a third person authorising him the right to sell the land on his behalf. But in such cases, the power of attorney should be witnessed and duly signed by an officer in the Indian embassy in his province. There is no legal support for Power of attorney signed by a notary public.
Agreement
Once all the matters, financial/otherwise are settled between the parties, it is better to give an advance and write an agreement. This ensures that the owner does not change his word regarding the cost as well as make a sale to someone else who offers more money. The agreement should be written in 50 Rs stamp paper. The agreement should state the actual cost, the advance amount, the time span within which the actual sale should take place and how to proceed in case of any default from either parties, to cover the loss. The agreement can be prepared by a lawyer and should be signed by both the parties and two witnesses. After signing the agreement if one of the parties make a default, the other party can take legal action against him.
Kumar Thadhani
(Expert) 26 January 2010
I do agree with experts mr Sarin & mr Vishal.
Sachin Bhatia
(Expert) 26 January 2010
I also agree with Mr.Sarin & Mr.Vishal
Swami Sadashiva Brahmendra Sar
(Expert) 25 January 2010
