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  • Category: Lawyers

    What are all the documents to be checked while buying a plot?


    Are you planning to buy a plot of land? Confused about the land buying procedure and whether government land surveyor needs to measure the land? Resolve your confusion by scrolling through the responses and advice from experts here.

    We need to be very careful while buying open plots because after buying it if we find any litigation associated with the land, it will be a big headache.
    What are the documents that need to be checked while buying a plot? Do we need to take help of the government land surveyor to measure the land? What to do when a neighbouring plot owner encroached small amount of the land and built a structure but it is not reflected in the documents? Is the land buying procedure different for different states?
  • Answers

    5 Answers found.
  • The following are the documents you should check before going for the purchase of a Plot.

    1. Sale Deed: This is the main document which is to be seen in original and it should be a registered document.
    One should see the document for compliance of various terms and conditions as agreed upon between the buyer and the seller. It should be on the name of the person who is selling to you or the person who is having ownership should sign on your sale deed.

    2. Link documents: you should also verify the documents linked to the sale deed. For example, If A is registering the land to you, you should who registered that land on the name of A and is he is the legal owner of that particular land. This should be known when you see the link documents.

    3.Encumbrance Certificate: This certificate will give a history of the ownership of that particular land. This will give the changes in the ownership during a period of time. You can get it from the sub registrar's office of that particular area.

    4. Power of Attorney: If a person other than the owner is registering the document to you, you should verify this document. This document is a registered document registered by the owner of the land give authority to another person for selling the land and signing the sale deed on his behalf.

    5. Latest Tax payment receipt: The owner of the land should pay tax up to date and the receipts should on the name of the owner who is registering the document to you or the person who has given a Power of Attorney to another person for sale.

    6. Survey: It is better to get the land surveyed by the government surveyor or a registered surveyor and verify the measurements and boundaries. This is very important.

    7. If somebody encroached a part of your land you should file a complaint in the court. For this, you have to take the help of a lawyer. He will advise you the whole procedure. But it is a long time process. If there is already a structure, it is better to get the money paid by that person to you at the market rate or a little more. You have to negotiate this through a proper third party who know you and the other person also, Otherwise, a lawyer whom you know well can be asked to negotiate.

    These days many irregularities we are seeing in real estate business and we should be very careful before purchasing the land.

    drrao
    always confident

  • Buying a plot of land or house or property is a dream for many of us but it has become a very tricky affair due to corruption, fake documentation, disputed land sales and demand for half payment in cash. Some of the documents that a buyer must check before buying any land, house or property are as follows:
    1. Title and ownership of the land, house or property(Land Deed) - It is also known as the 7/12 document and the first step. Check the title and ownership of the property. Ask for the original along with a photocopy.

    2. Encumbrance Certificate - It is a document that declares that the land is free of any legal hassle and unpaid dues and can be obtained from the sub-registrar's office where the deed was registered. It should be for at least the last 30 years.

    3. Property Tax Receipts and Bills - Verify with the municipal authorities or collect the original receipts of all the payments made as Property Tax or bills to be safe from legal complications in the future.

    4. Loans on the property - Check for any loans on the property in the bank and if yes, get a release certificate from the bank, stating that the loan on the land has been completely repaid and also get the property valued for the exact land measure.

    5. Physical survey and access to the property - It is wise to identify and check and divide the boundaries and access to the property by undertaking a physical survey and confirming the extent and measurement of the property.

    6. Verify the identity of the seller - As it is necessary to check the legal documents of the land, house or property, it is also necessary to check and verify the identity of the seller. Check the residency status and nationality of the seller and whether permission from government authorities or bodies is required for the sale. Check for the number of owners as you require NOC signed by all the members if the property is held jointly. If the property is held by a minor or person of unsound mind, you require orders from the competent court or the guardian, permitting the sale of the property.

    Varghese
    Limit your "alway's" and your "never's." - Amy Poehler??

  • (A) What are the documents that need to be checked while buying a plot?
    Apart from the physical detailed visit of the plot, you have to personally see, read and undestand the details in the following documents.
    1. The last sale deed on the plot.
    This deed will be available with the current owner. You have to see the original and getting a copy(either from him or applying for a copy from sub registrar office), read the contents with proper attention and understanding. From this you will know the previous owner seller, the extent of land, the boundaries etc.
    You should ensure that the stamp duty is correctly paid, the receipt for full consideration is documented and proof provided. The buyer in the sale deed should have been conveyed full marketable rights and title through the deed and should not have any word suggesting any encumbrance or right for any other person.
    2.No-encumbrance or NIL encumbrance certificate
    This can be obtained by the owner seller or you can apply and get it from SRO. The certificate should be for a period of 30 years or at least for 15 years.
    The certificate will enlist all the transactions and deeds on the said property, if any, for the relevant period. If there are recent transactions, it is better to see the deeds/copy and ensure that everything is okay.
    You should be careful that there is no minor share or rights especially. If the sale is going to be done by Power of Attorney, you should also cal for the Power of Attorney and ensure the genuineness and legal correctness.
    3. Prior deeds
    The last sale deed will say if the previous sale deed (prior deed/ partition deed in original is given to the buyer. If so you should scrutinise them. Otherwise you should ensure where the prior deeds are and ensure justification of that and scrutinise the copy from SRO.
    It is better to trace back the prior deeds for 30 years or at the minimum of 15 years with the lasts and before that one compulsorily.
    4. Tax paid receipts.
    You should scrutinise the latest tax paid receipts- for the land and building if any- and ensure that all taxes are paid upto date.
    5. Possession certificate and sketch
    This will be obtained from Village Office. The seller can get this and give you. It is with the sketch that you have again verified the plot. If there is any difference from the sale deed and present sketch, then you have to get is surveyed again by the village office people and get it as the latest status. This only should be recorded in the new sale deed and pay only for that. That only should be the sale property. The seller should also convince you how the difference happened.
    6. Get professional help
    If you are not clear in any of the things, it is better to get the service of your well wisher lawyer and get his professional opinion. But even when you take help, please do the scrutiny by yourselves also. It is better to go to the SRO and do the search by yourself paying the relevant fees.
    7. Enquiry with neighbours and local people
    Apart an above all these you should also hold discreet enquiry from the local people and neighbours with due care.

    (B) Do we need to take help of the government land surveyor to measure the land?
    Yes, it is better, especially when the latest sketch is not available to scutinise and you are not able to properly see the boundaries and extent or the plot does not appear to be measuring as per sale deed.

    (C) What to do when a neighbouring plot owner encroached small amount of the land and built a structure but it is not reflected in the documents?
    As a prospective buyer, you cannot do anything in this. But if that encroachment and structure does not block your approach and path and you are ready to buy the plot as such, get the land surveyed by govt surveyor, get all borders and extent properly narrated and marked, ensure thje possession certificate is given only for the actual plot now in possession. Then the actual land available can be properly narrated and sketched and sale deed and price made for the actual land available for real sale.
    I you are not satisfied, do not proceed further.

    (D) Is the land buying procedure different for different states?
    All basics are similar everywhere. There may be some few additional documents, photo, supporting documents etc. Moreover the names of papers and documents may vary. The registration charges and stamp duty and other fees may vary.

  • Once you identify the plot you plan to buy, you should ask the seller or owner for following documents:

    1. Parent document/ Mother Deed. It is an important legal document by which one can that trace the antecedent ownership of the property from the start. This document also helps in the further sale of the property. If Mother deed is not available or any of part is missing it should be obtained from the registering authorities. This document also gives information about the change in ownership of the property, be it through sale, partition, gift or inheritance.

    2. Sale deed/ title deed: It is the main legal registered document. It acts as a proof of sale and transfer of ownership of the property from the seller to the buyer. Buyer should check whether all the statutory payments such as property tax, water charges, cess, electricity charges, maintenance charges, society charges, etc are settled by sellers before the execution of sale deed and also check that title is in the name of the seller and he has the full right to sell it. It should also be checked for various compliances of terms and conditions. See original document and not just a photocopy.

    3. Conveyance Deed: It is a legal document having transferring legal rights of ownership of immovable property from one person to another.

    4. Encumbrance Certificate: In this document details of all the registered transactions of property are available during the period for which certificate is received. This document can be obtained from the sub-registrar's office where the deed is registered. It states that the land is not having any legal issue and dues. It can be obtained by submitting a copy of the Sale Deed along with Form 22, a non-judicial stamp and prescribed fee and by submitting it to the jurisdictional sub-registrar's office. In Form 22 all details of property like complete address, property survey number, property location, the sought period, property description, its measurements and boundaries should be mentioned.

    5. Power of attorney (POA): By this document property owner can give authority to any other person on his/her behalf. Owner can either give a Special Power of Attorney (SPA) or a General Power of Attorney (GPA). You should check that the person is going to sign the purchase agreement has power of attorney in his/her name.

    Note: Only the person having either the encumbrance Certificate or the power of attorney in his/her name can sign on purchase agreement.

    6. Patta of Land Document: Patta is a legal document and also called as record of rights. it is issued by government in the name of the owner of a particular land plot and should be verified. This document has all details about the property like history of property ownership, size, etc.

    7. Conversion Certificate: If land is changed from agricultural land to non agricultural purpose then a conversion certificate is also required. That is issued by the competent authority. After this, a request is made by the competent revenue authority for issuance of NOC to the Department of Town and Country for the conversion of land for residential purpose.

    8. Building approval plan: Approved building plan should also be checked and collected whing you are going to buy any land.

    9. Khata Certificate and Khata Extract: Khata is an account of a person owning a property and consists of Khata Certificate and Khata Extract. A Khata Certificate is required for the registration of a new property and the transfer of a property. Khata Extract is obtaining the property details from the assessment registrar.

    10. Development charges receipt: Recipt of Development charges paid by the owner are also required to be checked at the time of buying a property. These charges are usually fixed.

    11. Loan on property: You should also check that the loans on the land are repaid with a release certificate issued by the bank.

    12. Latest tax paid receipt: Receipts for property tax bills should also be checked to avoid any legal complications in future. You 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.

    13. Physical site survey – It is also advised that you should visit site yourself before buying it and also to check the specifications provided by seller.

    If the seller is hesitant to provide these documents, proceed with this land with caution.

    You can take help of the government land surveyor in exact measurement of plot boundaries and to match with the sale deed.

    If a neighboring plot owner encroached small amount of the land and built a structure but it is not reflected in the documents, in this case again you can take help of land surveyor for exact measurement of plot area.

    Land buying procedure is almost same in every state but there may be difference in document requirement and name of the document may also differ state to state.

  • Before buying a property in form of a plot it is necessary to check the previous ownership of the plot and for that one as to check for registration of the property in the name of the previous owner in local municipal office and is the most important aspect and that is the first thing that is to be ascertained by the buyer. The owner might have bought the plot from someone else so he should be asked to present the sale/ purchase deed when he bought the plot. So, once these two documents are in order (earlier sale/ purchase deed and its registration in local municipal office) the buyer can be satisfied with the true ownership and its proof before making a new sale/ purchase agreement with the owner.

    Once this part is over the buyer has to ensure the following documents in the process of buying a plot -

    1. Sale deed - Buyer has to enter in a sale deed with the seller. This is the most important document and is to be registered in the office of Sub-Registrar in the area. Buyer should ensure that all clauses should be put in the sale deed as per standard procedure and details should reflect therein.

    2. Khata certificate - Khata certificate or extract is a document which proves that property has been entered in the municipal records and useful when one wants to sell the property at a later stage. Khata certificate is also known by different names in different states in local languages. This certification is asked by the banks if one seeks loan from them.

    3. Mutation - This is an important step in buying a property and municipality or Gram Panchayat office deals with it. This document is considered as legal ownership of the plot or property.

    4. Power Of Attorney - This is another document which is required when another person is selling or buying the property on behalf of the previous owner or present buyer.

    5. Copy of Plan - A buyer should get a copy of the plan of the land or the plot as approved by statutory body which is a legal way to establish the legal existence of the plot.

    6. NOC - The plot should be free from any encumbrances or dues or legal tangles. So NOC from the requisite authorities will be required.

    7. Property Tax - The buyer has to take the previous years property tax payment proofs from the seller. This is required to avoid any duplicate tax demand from the authorities.

    Knowledge is power.


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