Understanding the Procedure of Buying Agricultural Land in India

Understanding the Procedure of Buying Agricultural Land in India

When it comes to buying agricultural land, especially here in India, it might sound like a cakewalk, but it's not. A person who will buy a piece of land might be hoodwinked if they lack knowledge and awareness of the right procedure that needs to be followed to make a tremendous and lucrative land deal. Let's try to understand what agricultural land is all about and why you would need to buy it. 

Let's know about agricultural land

As its name suggests, it generally implies the land needed for farming and agricultural purposes. It is essential to do the paperwork right while buying such lands; otherwise, it might land the buyer into uninvited legal disputes that nobody would want. Hence, we have tried to simplify this whole process by compiling every little piece of information that you might need to facilitate the entire thing. 

Little Things that need to be kept in mind while buying the agricultural land

  • Make sure that you're not purchasing a disputed land
  • Different rules are applied to other states in our country for buying agricultural land. In Telangana, anyone is eligible to purchase the ground, but only registered farmers are allowed in Maharashtra and Karnataka. So make sure that you're aware of the norms about that state. Noncompliance with such rules can backfire
  • Land must have a marketable title
  • Make sure that you're not buying the piece of agricultural land for residential purposes. It's prohibited to build a house or space to reside on the farming land
  • You have to go through the conversion procedure if you wish to use an agricultural property as the residential one. Every other state has its guidelines that need to be followed accordingly by the buyer
  • To obtain the conversion certificate, a form must be filled up and submitted to the concerned authorities. You required to state the reason for the conversion, and required documents have to be submitted along with the form
  • Don't forget to obtain a NOC letter from the township to avoid any legal troubles in the future
  • However, make sure that if you're buying an agricultural property, then use it for that purpose only. The process of conversion may be full of hassles
  • Nonetheless, always keep in mind to hire or involve land or real estate lawyer if you can. This will help you to examine records of the land you're buying and also helps in identifying if the seller is verified and trusted or not. It just mitigates the unwanted risks

List of the significant Documents that one needs to buy the agricultural land in India

  • The title deed of the plot: This deed is constructive to check if the seller is authorized to sell the land under his name and especially in the case when more than one person is the owner of the land being sold out, the attorney verifies it if this land involves the consent of all the owners involved and other relevant deets
  • Sale agreement: Buyer and seller undergo to sign a written agreement in front of the lawyer. This written agreement ensures that every document submitted by the parties involved is adequately verified and there's no scope of any doubts
  • Stamp duty: Payment of stamp duty is about paying government tax, and it may vary from state to state. 
  • Land registration: A document signed by both the parties is recorded at the registrar's office and states the T&C regarding the transfer of the property in the buyer's name. It also includes house tax receipts, an original title deed, and previous deeds in the presence of two witnesses
  • Tax receipts and bills: The buyer must ask for tax receipts and invoices and needs to ensure that there's no outstanding bill or receipt amount due on the land they're buying
  • Changing the land title: Once everything is done and dusted, the land title needs to be updated under the new owner's name. Make sure to get it done in the official village records
  • Collect your encumbrance and land measurement certificate: These documents must be obtained from the office of the sub-registrar as valid proof that the land acquired is free of any legal complications and obligations

This is the procedural structure to be maintained while buying the agricultural land. Ensure you complete all the necessary steps while purchasing the land for agricultural purposes so that you can make the most out of your purchase.