1. Check the Title Deed of the Land
As defined by a law dictionary, a title deed is "a legal document proving a person's right to property.. An advocate prepares a title deed after studying and scrutinizing the property and verifying that all is in order.This Title Deed contains the most basic information including name of the owner, land area and other such information.
So as a buyer what you need to do is ask the owner of the land you wish to purchase for the tile deed and review it properly. Do not accept a xerox copy of the deed. Ask for the original Title Deed. Some times the seller might have taken a bank loan and given in the original deed.
You need to make sure through the title deed that the land is in the name of the seller. Also you need to verify that he has full right to sell the land and that he is the sole owner of the land and no one else is. It would be wise to get the title deed reviewed by a trusted lawyer just to make sure that there are no loop holes.
As a buyer you may also ask for previous title deeds of the land and get these verified too by a lawyer.
2 Encumbrance Certificate
This is basically a certificate ensures that the plot is not involved in any legal dispute. The encumbrance certificate can be obtained from the sub-registrars office where the deed for the land has been registered. The encumbrance certificate for the past 13 years should be taken and verified. You could even ask for the encumbrance certificate of the last 25- 30 years for more clarification.
In the case of Pledged Land..!
The land may have been pledged to take a bank or private loan. So, you must ask for release certificate from the bank to ensure that no amount is due. If land is owned by more than one person, ask for a release certificate from each of the person involved. Ask, the seller to produce the, Release Certificate from the bank that is necessary to release all debts over the land legally.
4. If there is more then one owner:
If there is more than one owner, it would be wise to get a "release certificate" from everyone involved before going ahead with the process.
5 If the owner is NRI
If the owner of the land is a NRI (Non-Resident Indian), then the seller of the land in India should be given "Power Of Attorney" to sell the land on behalf of the NRI. The power of attorney has to be signed by an officer of the Indian embassy in the presence of a witness.
After all these initial checks are made you can go about the actual process of buying the land. Once all the initial checks are made and the land to be bought is properly examined and the negotiation of the price is done. please enquiry the price of the plot with some other related persons.
7 Check Tax Receipt and Bills
You must check with the concerned municipality to verify all the taxes and bills have been paid till date and inspect the latest tax paid receipts.
All the above checks are required before buying a land.
8 Agreement
Draft an agreement between the parties involved in the transaction. An agreement is made to make sure that none of the parties involved in the transaction change their mind and go back on what has been decided about the transaction. It will be made in minimum Rs. 20 stamp paper.
9 Document Preparation
You could get the title deed written by a government licensed Document Writer only. Even lawyers can prepare the deed, but the document can only be computer printed or typed, not handwritten. Only those who hold the “scribe license” can prepare handwritten documents. Make sure all the details mentioned are accurate.
10 Registration
The land is to be registered in a sub registrar office. If there is incorrectness in the documents after registering, new documents with the correct details have to be registered and depending on the incorrectness, the registration expenses will have to be repeated.
Happy plot of land buying..!
Very good advice. I think people go crazy sometimes when picking out to buy. It's hard to go with the less is more approach but definitely a smarter thing to do.
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