Spend, Save and Invest Smartly
There is a famous saying "Don’t wait to buy land, buy land and wait." Land is always in shortage in our country and its price is always high. Can you buy a plot of land with your eyes closed? Definitely not….Rushing into a purchase without checking the land details thoroughly is an act of foolishness.
The title deed is the most important document you need to check when you buy a plot of land. The title deed (proving ownership of the land) needs to be in the hands of the seller of the plot of land.
The title deed gives you the history of ownership of the land. Who the previous owners were? The change in ownership of the land (as it is transferred between owners as a gift, sale or an inheritance).
Trace the ownership of the land (all its past owners) and look for any discrepancies. If you find any missing link (a gap in ownership of the land) check the revenue records of the plot of land. Always examine the original title deed of the land. The title deed of the plot of land needs to be clear and marketable.
A sale deed of the plot of land gives the seller the right to sell. It transfers the ownership of the plot of land from the seller to you. Make sure that the seller of the plot of land has the sale deed (The right to sell the land to you). Make a draft sale deed between you (buyer) and the seller on a non-judicial stamp paper. The sale deed contains you (buyers) name and address as well as the sellers name and address. It also contains the details of the land such as its location, address (identification number) and the area of the land (layout). You and the seller need to agree on the payment amount, if any advance amount needs to be paid, the dates on which payments are made, the mode of payments and details of the banking transactions. The sale deed mentions the date the seller hands over the land to you (ownership is transferred to you) along with all the relevant land records. After you and the seller of the plot of land have an agreement, the sale deed is registered in the sub-registrars office in the presence of a witness. You the buyer will have to pay the stamp duty and the registration charges.
You need to check if the plot of land has an encumbrance certificate. The land you buy may have been mortgaged as a security (debt) to a bank or a third party. The seller may have mortgaged this land as collateral for a loan. The encumbrance certificate states that the land is free from any mortgages debts or legal problems (litigation). You will have to check the sub-registrars office for any encumbrances on the land.
All land in Karnataka is regarded as agricultural land. If this land has to be used for construction (both residential and commercial) it has to be converted to non agricultural land. This is called land use conversion. The value of your plot of land rises if it can be used for construction. Land is converted from agricultural land to a non agricultural land by a Deputy Commissioner. The converted land is called DC converted land. The Department of Town and Country Planning needs to issue a NOC (No objection Certificate) for the land to be converted to non agricultural land. The Deputy Commissioner checks that the land has been approved by the Department of Town and Country Planning for land use conversion and then it is converted. DC conversion is very necessary for the plot of land to get an A Khata certificate.
The word Khata means "account". Khata helps you find out the details of the land from the Municipal registrar. It means the owner of the land is paying his property tax. A Khata land come under the BBMP (Bruhat Bengaluru Mahanagara Palike) jurisdiction and signify a legally developed land with valid sanctions and approvals. B Khata properties are within municipal limits (BBMP) or outside municipal limits without valid licenses and sanctions. The B Khata does not actually exist. It is merely a record maintained by the BBMP in a B Register. The record in the B Khata does not mean ownership of the land but merely states that the owner was paying property/land tax. You need to make sure that the plot of land you purchase has an A Khata certificate to avoid any hassles. Buying a plot of land can be a very profitable exercise if you do your due diligence in a proper manner. If you buy land in haste then you will have to regret at leisure.