Buying land in India can be a complex process, but it doesn’t have to be overwhelming. In this guide, we’ll simplify the steps involved in purchasing your dream plot of land in the country.
Documentation process
List of documents required
- Land Title/Deed- The first step is to check the title/deed in the name of the property seller. Check whether the individual has full rights to sell the plot. Insist on the original deed document and not the photocopy. Get legal help in knowing whether the land deed/title is marketable and legal.
- Encumbrance Certificate- Get this document from your sub-registrar’s office (where the deed is registered). You can find out about disputes, legal complications and unpaid taxes/dues here.
- Property Tax Bills and Receipts- Ask for all original copies of these documents and check whether payments are up-to-date or not.
- Loan Papers- If the land had a mortgage, you should check the repayment of loans. Make sure that there is a release certificate from the bank. Get property valuation done for the exact size of the land as well.
Documents required from sellers
- Encumbrance certificate
- Original land title/deed
- Release certificate of the bank
- Original property tax receipt and other bills
Documents required from buyers
- Title deed after name transfer
- Receipt of stamp duty payment. You can now get the land registered in your name at the sub-registrar’s office
- The State Municipalities require prior sanction garnered by anyone willing to construct a new house or modify any existing property. The building plan is necessary with the fee for approval.
Property registration process
The 1908 Indian Registration Act states that property registration is mandatory. Legal recording of property transfer ensures ownership transfer and property rights from a legal perspective. Here are the steps that you should keep in mind:
- Buyers pay registration charges to their respective State Governments as a percentage of the total plot cost.
- During document submission, buyers pay a percentage of the total plot price as the stamp duty. It is usually 3-4% of the plot’s sale-able value, while registration charges are 0.5% of this value. The sale-able value comes from the guideline value and property size.
- Senior citizens and women get discounts on registration and stamp duties in many Indian States.
- Documents needed for registering your plot include the following:
- Katha Certificate (In Karnataka)
- Sale deed
- Encumbrance certificate
- Latest tax payment receipt
- Landowner’s title documents
- Agreement of sale
- Power of attorney if applicable
- All agreement copies with registration
- The examination of all details and verification takes roughly 5-7 days, and you will have to spend around Rs 10,000 for this purpose. Checking goes on while sellers agree to the property sale, with the ownership document in the owner’s name, as issued by the department of revenue records.
- You will have to appoint your lawyer for a safe transaction. The lawyer will make the final document which goes for stamping afterwards.
- You will pay stamp duty as a buyer at the chosen bank, and the procedure takes a single day. The bank will give you a receipt acknowledging receipt of stamp duty on the sale deed front page.
- The execution happens with the sale deed signing at the office by the seller, buyer, and two witnesses. The number generation happens while you pay the registration charge via a demand draft or cash. The documentation gets delivered to you.
- You will need two passport-size photographs, along with ID proof of both the seller and buyer and of witnesses, exact copies of the seller’s certificate of incorporation, PAN card details, latest property register card copy and also municipal tax bills.
- After registration, get the title changed to your name. Apply for the mutation, final sale deed copy and affidavit at the office of the registrar. The next step is property tax calculation, and the authority then issues mutation.
- Online services are readily available for registration and submitting documents. It is an application created by the Department of Stamps & Registration, helping people find the document list easily and book registration dates.
Registering the property ensures authenticity and legal validity of the sale deed while safeguarding investors against fraud. It enables updated public records while determining the sale of a property. It also secures title deeds and works as proof of ownership.