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

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.

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.

(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.

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.

The most important thing to keep in mind while purchasing a plot is that you must check its title. This means that you should know that the person who is selling you the land is the real owner of the property and has all the rights. It is advised that you go to a lawyer to get the certificate of title confirmation of the vendor by checking sales deeds and property tax receipts.
Search Registrar's Offices
This search shows transactions concerning the land to be acquired. Every state has a different system for completing searches in registrar's offices. An experienced lawyer or person issues a report to conduct a manual search at the Sub Registrar Office. One has to check with the authorities concerned for legal documents before the property deal.
Public notice for the plot purchase
Before purchasing any property, public notice should be given to inviting any claim on the proposed plot to be purchased in local newspapers. From this, you will know that no third party has rights on the land.
Power of Attorney
Many times the land is sold by the owner through the Power of Attorney (POA). The POA should be examined thoroughly to ensure that the same property is being sold.
Verification of original documents for the plot purchase
Before completing the sale transaction, it must be checked whether the original title documents related to the land transaction are correct or not. It will be known that the seller has not created any third party rights with the original.
Tax and account in the plot purchase
Before purchasing the land, the buyer should ensure that the property tax has been paid till the date of transfer and the original receipts for such payment are ready for verification. It is also necessary to ensure that the account (revenue recording showing the owner's name) is available in the name of the vendor.
Local rules for plot purchase
The buyer of the plot should ensure that local laws/regulations do not impose any restriction on the purchase of land. Be sure to consult a lawyer before purchasing a plot.
Plot size
Buyers are advised to measure the land before registering in their name. The buyer should enlist the help of a recognized surveyor to ensure that the measurements and limits of the piece of land are accurate. You can also compare accuracy by obtaining a survey sketch of land from the survey department.
Floor Space Index (FSI)
FSI indicates how much can be constructed on a piece of land. The FSI is determined through the State Town and Country Planning Department. It also depends on the location of the plot.

Chain of title must be completed. Seller must have clear title/ownership.