A Fair Report On Legal Documents for Buying a Plot

Legal Documents for buying a plot
  • In India, we follow strict & lengthy documentation procedures in the property registration process.
  • The sale of immovable property of more than All transactions of sale. property above RS.100 is compulsory under registration act 1908. Section 17.
  • The buyer must always be very clear about the Legal documents for buying a plot. Buying a plot and examining it before signing a deal.
  • Property investments are capital intensive.
  • The land has been the best investment since the beginning of time.
  • The checking process must be done, to make sure that the buyer has a fair right over the property.
  • It should bring peace of mind and a sense of security to the buyer.
  • In real estate investments, the goal is to put our money to work today so that we have more money in the future.
  • The value will increase in the coming years and there is no depreciation value for lands.
  • If we make a mistake, the consequences can range from minor inconveniences to major disasters.
  • The property should be free from legal issues.
  • Identifying the problems beforehand saves more expenses in the future.
  • With proper legal advice, scrutiny of documents and verification of relevant information about the property must be done.

     “PREVENTION IS BETTER THAN CURE”

The Essential Legal Documents For Buying A Plot

DEED

  • A Deed is a legal documents for Buying a plot & transferring a title from the seller to the buyer.
  • It must be a written document & is sometimes referred to as the vehicle of the property interest transfer.

Parent Deed

  • The parent deed document is also referred to as ‘thai pathiram in Tamil and includes the unbroken flow of the title up to the present owner.
  • A parent deed is a statement that has the details of the rightful owner over a particular piece of property.
  • These legal documents for buying a plot record the change of possession of the title, rights, and ownership of the property to the buyer from a seller.

Sale Deed

  • This Sale deed is a legal documents for Buying a plot that records the change of possession of title, rights, and ownership of the property to the buyer from a seller. When the two parties in a property transaction agree, the title of the property is transferred through a sale deed.
  • This is an essential document, both the buyer and the seller are required to be present at the time of the deed.
  • The name and details of both parties must be mentioned in the deed is done at the sub registrar’s office.
  • While buying a property, need to trace at least 30 years of history. Documents that identify the later owners of the property up to the present owner should be traced.
  • In case of Documents missing, the buyer can trace the title from the earliest document that the seller has.
  • The buyer can register an F.I.R. An advertisement can be published in a Newspaper within a time frame. If no one claims ownership within that time frame, the property will be considered legal.

Chain Of Title

  • The chain of title is the documentation of all past ownership of a property. It runs from current owners to the first owner.

Clear Title

  • It is also known as a “ title “ . “ good title “. or a “ free & clear title “, – a clear title doesn’t have any kind of lien or levy from creditors.
  • It means there is no question of legal ownership of the property such as building code violations or bad surveys.

Legal Scrutiny Report

  • It is a legal opinion in one’s individual capacity to ensure that the property is free from legal liabilities.
  • The buyer should get these legal documents for buying a plot report from an advocate specializing in the real estate sector.

Agreement Of Sale

  • The agreement of sale states the terms and conditions between the buyer and seller.
  • It also provides the details of the date of possession, arbitration clause, jurisdiction, and force majeure.
  • A buy & Sale agreement is referred to as a written contract between the buyer & seller, which outlines the terms of the parties to sell & buy the legal documents for buying a plot.

Power Of Attorney

  • It is a legal document for buying a plot that gives another person the authority to act as a legal owner, on behalf of the actual owner.
  • Make sure that the property owner owns the rights of the Power of attorney holder.

Joint Development Agreement

  • The landowner gives the land to the best builders in Chennai and sells apartments.
  • The landowner issues a Joint development agreement to the developer. For the properties that are constructed with a Joint development agreement, the buyer should inspect the parent deed and all other essential documents.
  • In the case of a Joint agreement, the NOC from the partners is a must.

Encumbrance Certificate (EC)

  • The Encumbrance certificate shows whether the property is free from monetary and legal liabilities.
  • One of the most important documents which were taken a loan against property from banks it shows all the details about transactions relating to the asset.
  • It will help to achieve proper entitlement.
  • It holds the name of all owners from the past 12 to 30 years.
  • It also includes the ownership title transfer, mortgages, etc.,
  • It also states that the property is free from all encumbrance.
  • Most banks demand this document before approving the home loan.
  • The Encumbrance Certificate should be bought by the buyer.
  • It is provided at the deputy registrar’s office and can apply offline form 22.
  • The real estate contract, in the simplest definition, is a promise enforceable by law.
  • The making of the contract requires the mutual assent of two persons, one of them making an offer and another accepting.
  • If one of the parties fails to keep the promise, the other is entitled to legal redress.

Patta

  • The Patta is an important record to claim ownership of land.
  • The Patta is a legal document obtained from the Tahsildar’s office in the name of the actual owner of the land.
  • To proceed with any transactions involving the legal document for buying a plot in question requires the patta document.

The Following Details Are Listed In A Patta:

  • Name of the District, Taluk, and Village.
  • Patta Number.
  • Name of the owner.
  • Survey number and subdivision.
  • Area of the land and tax details.
  • Is it a Wetland or a Dryland?
  • Once the registration of the property is done, the patta will automatically be transferred to the new owner.
  • Patta can be checked online.

Khata Certificate/extract

  • Khata means “ Account “ in English.
  • It is an important document for transferring a property & also for the registration of a new property.
  • It is essentially the account of a seller or the owner of the legal documents for buying a plot.

Mutation

  • It is the change of title ownership from one person to another when the property is sold or transferred.
  • By mutating a property, the new owner gets the title of the property recorded in his/her name.
  • It is updated in the revenue records maintained by civic bodies like Municipalities, Panchayats, or Municipal corporations.
  • It is a must in the case of Agricultural lands, without mutation, the land title will not pass to the new owner. And the electricity connection, water connection & municipal tax payments are possible if the mutation is done properly.
  • It is not very important in the case of non-agricultural lands, the failure to mutate does not take away our right in the sale deed.
  • It is very important if the legal documents for buying a plot that you are going to purchase have been inherited or acquired by way of gift by the current owner.

RTC/RR/IL

  • If the legal documents for buying a plot that you are intending to buy is a revenue land, in the Panchayat area or a converted land for sale (agriculture to non-agriculture purposes), then it is a must to check the following revenue records.
  • RTC ( Record of Rights, Tenancy & Crops ).

It Is An Important Revenue Record & It Contains

  • Landowners details.
  • Area details.
  • Water rate.
  • Soil type.
  • Possession of the land & liabilities.
  • Tenancy.
  • Crops Grown…etc.

RR  ( Record Of Rights )

  • It is issued by Asst. Tahsildar & contains the details of the legal documents for buying a plot, owners of the property along the nature of the possession ( acquisition of land ).
  • IL ( Index of Land ) It contains details about the owners of the land & details about the land.

Advantages Of Tax Exemption

Land Use Certificate

  • Constructing a residential building in a commercial Zone is an illegal act.
  • Check with the development authorities & confirm. that the residential properties that we are planning to buy are exactly in the residential zone. not in the commercial, agricultural or industrial zones.
  • At the same, be sure that the residential properties should not be bought for commercial purposes without the approval of the urban development authorities.
  • According to the “ Zoning Rule “, the urban development authorities have the full right to demolish the buildings that are constructed without the proper approval of the development authorities of the respective concerned areas.

No Objection Certificate ( NOC )

No objection certificate should be obtained wherever necessary NOCs for water, electricity, etc as well.

Revenue Tax Paid Receipt

  • The builder/landowner should pay this tax amount to the Revenue Department.    
  • Tax receipts should be checked to ensure whether the seller of the property has paid all tax accruing on the property for the past 3 years to the concerned authorities.
  • We should ask for previous receipts of property tax if we are buying a property that is being resold.
  • Check that there are no areas & all the tax dues till the date of registration is cleared.
  • Legal documents for buying a plot are required to locate the property in the government records.

Vacant Land Tax 

  • Verify whether the vacant land tax for the land has been paid.
  • Otherwise one has to pay a hefty amount of vacant land tax for years together.

Approved/unapproved Layouts

  • A layout that has proper approval for sale and construction by CMDA is an approved layout.
  • In case of unapproved layouts, the buyer can not avail of a water connection or electricity connection from the local authorities.

House Plan Approval Of The Place

  • The building planning & the layout should be under the guidelines of the National Building Code of India. 
  • The layout also needs to be by the norms of GRIHA ( Green Rating for Integrated Habitat Assessment ) With a proper Agriculture to Non-Agriculture certificate.

Master Plan

  • The master plan of an area can be procured from the Local town planning department to check whether the property is in the Land-use zone as per the Master plan for the property.

Layout Map/location Map 

  • In case of legal documents for buying a plot in a layout, we can ask for a copy of the approved layout plan of the entire project.
  • Sometimes, we may get into spaces that are earmarked for an open space ( park site ) purpose as per the layout plan.

Compliance Under Real Estate Regulation Act 2016

  • The official web portal of RERA provides details of any cases/complaints filed against the developer of the project & default by the developer if any. ( Confirm the Credibility ).

Documents Required In Case Of Loan Outstanding

  • The buyer must ask for a copy of title documents & statements of the loan outstanding due from the bank, to ensure there is full disclosure.
  • The buyer should request for the closure of the loan & get a “ No-Dues certificate “ from the bank before they buy.

Need And Importance Of Personal Scrutiny on Legal Documents For buying A Plot

  • Need to make a personal visit to the property, after checking the parent deed, encumbrance certificate, and tax paid receipts.
  • It is advisable for the buyer to measure the plot as discrepancies around the total size of the plot are common. 
  • The corner plot purchasing people often do not know the fact that a part of their legal documents for buying a plot will be taken for the setting of the road.
  • The layouts/plots should be approved by the CMDA and not the panchayat.
  • Verify and confirm the actual owner of the land.
  • The seller must have a right to sell the property. 
  • Verification of the title and the ownership of the seller is a must. Then check the right for selling.
  • Select the land with an approved layout with proper approvals. Otherwise, we have to spend an extra amount to get the approvals. And also check the plan has been prepared according to the development control rules.

The Proper Legal Procedure To Trace The Lost Document

  • Sometimes the documents getting lost could happen. The seller should be traced. While buying a property, one must trace at least 30 years of history.
  • In cases where the documents dating back to 30 years are found to be missing, the buyer should immediately register an FIR.
  • Since early legal documents for buying a plot that c