To Buy a land is a very emotional process for many of us. There is also a bulk of our fortune that we are about to invest in it. So taking your time and fully verifying all the essential documents is very important. You have to look over on every small information in great detail before making a deal. In the following article, I will explain some of the key points that you should check and ask questions to the agent or the property dealer so that you won’t have any issues in the future.


Important Things To Check Before Commencing The Buying Process

  1. Check whether the land you want to buy is in the name of the builder or someone else. Always keep in touch with the rightful owner of the land.
  2. If you’re buying a flat then check if the developer has taken a loan from the bank for that project. This indicates that the developer is serious and isn’t dependent on the money coming from advance bookings. Also, as the bank does a thorough check before granting a loan, you can be a bit relaxed about the legality of the project.
  3. Do verify that the land is NA (i.e Non-Agricultural) and NA-Residential i.e. cleared to build residential structures. Never buy a flat in any project that has NA pending. And also, there are different types of NA. Therefore, make sure it is NA-Residential in this case.
  4. If you are buying a plot, make sure to check the approved FSI of that plot. FSI or Floor space index means how much construction can be done on that piece of land and it also depends on the location of the land.
  5. In the case of buying a flat, check the track record of the developer.
  6. Don’t forget to ask what will be the annual maintenance of the land/flat after buying.
  7. Personally, visit the site of the land/flat that you intend to buy 3-4 times and mostly without telling the agent of the selling party and get to know about that place from the neighbors as well.
  8. Do make a note of all the basic amenities and facilities that will be made available to you after you buy the land/flat. It’s better if you get these details like water and electricity facilities from municipality sources as they would be providing those facilities.
  9. Last but not least, do not hurry and do bargain for a better price.

Once you are through all these hurdles and set your mind for buying the land/flat, follow the process as given below:

What Are The Actual Processes And Formalities That Are Involved In Buying Land

 First of all, you will have to draft an agreement between the seller and the buyer. This agreement makes sure that none of the parties involved can change their mind and go back and make changes to the deal. Such an agreement is made on a Rs 50 stamp paper. It consists of the following details:
  1. The final agreed cost of the land/flat between the seller and the buyer.
  2. Advance payment (typically 35-40% of the total amount) that is given by the buyer to the seller.
  3. The time period under which the actual sale of the property should take place.
  4. Procedure to be adopted in case any of the parties default on the agreement.
  5. How will the losses be covered in an event of any one of the parties’ default?
  6. Complete details of the land/flat.

As you can tell from the particulars that this agreement is of great value and, thus, should be drafted by an experienced lawyer. If an agreement is not well-drafted, then any one of the parties can misuse any of the clauses and get away with it. This has happened many times and is drastic for the other party.

The agreed advance amount should be paid by the buyer when this agreement is drafted. The agreement document should then be verified once again and signed by both parties and 2 witnesses and the payment should be done.

After that, you need to prepare a title deed. This is a document that is to be written by a government licensed “Document Writer”. Lawyers can also prepare it, but the document can only be computer printed or typed, it can’t be handwritten. The ones holding a “scribe license” can prepare this document handwritten. Don’t forget to make sure that each and every minute detail mentioned in this document is accurate.

Next Step: “Registration”

After the agreement is prepared, the land/flat has to be registered in a sub-registrar office. In case there are some mistakes in the documents (Title Deed) after they are registered, then new documents with correct details have to be registered again and the registration expenses will be repeated. So make sure you get the documents right when registered in the first place and also within the time limit that is mentioned in the agreement.

The documents that are required for registration with the Title Deed are:

  1. Original title deed.
  2. Previous title deeds.
  3. Original Property/House Tax receipts.
  4. Torrence Plan (optional) etc. along with 2 witnesses are needed for registering the property.

Torrence plan is a detailed plan of the land/flat prepared by a licensed surveyor that has accurate details of the measurements including width, length, borders, etc of the property. This plan is needed only in some specific cases.

For a land that is costing more than 5 lakhs, the seller has to submit his PAN card or Form Number 16 during the registration process.

All Expenses Involved In The Process

The stamp duty depends on the cost of the property and it varies from place to place. Registration fees will be charged 2%. Document writer’s fees are also dependent on the cost of the land/flat and may vary. The government has prescribed a percentage for the Document Writers and they cannot charge you more than that. So make sure you know exactly how much you need to pay them.

The Actual Process Of Registration:

  1. Go to the sub registrar’s office.
  2. Take all the necessary documents as mentioned above in “Registration”.
  3. Submit your document with the “input form” at the token window and you will be given a token number.
  4. Your token number will be announced in a while.
  5. When announced, all the involved parties to the document must present themselves before the sub-registrar to admit the execution of the document, that is photographed, thumb impression and signatures are taken on the additional sheet of paper in presence of the sub-registrar.
  6. You need to pay the required registration fees and computer service charges in cash as per the receipt. Generally, the charges are Rs 20 per page.
  7. The document will be returned to you within 30 minutes of getting the receipt.

Note: It is very important that you only with Officers and staff of the Registration Department who always display government identity cards with Government Seal to avoid any fraud.

Once you’ve completed all these formalities, your land is now registered in your name.

If you have any questions or suggestions, please leave a comment below.

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