Land buying can be a tricky affair
From convoluted loan clauses to unclear title deeds, the path to your own land is filled with potholes
Sep 14, 2013
Source : The Hindu


DELHI: Buying a piece of land and building their first home is the biggest dream harboured by many Indians. So, when Prabhat told his mother that he was buying a plot of land, she was proud of him, something she did not feel when he had invested in a flat.

But buying a plot of land is a tricky affair, what with all the blatant corruption surrounding such deals including creating fake documents, demand for payment in cash and also issues of disputed land sales. If you are ready to buy land to build your first home, it is advisable to be very cautious and thorough.

Also, the steps and procedures are quite different from purchasing a flat and hence require a careful analysis before setting out on the path.

Plots are scarce in big cities, but you can still get a good piece of land in smaller towns or even the peripheries of the cities. If you are planning a loan, then a land loan offered by banks is an option. Some bank loans entail a clause that requires the buyer to start construction within six months of land purchase. So, it would be advisable to plan your course beforehand. You may procure a personal loan, but that might be a little more expensive.


It is advisable for land buyers to check for the following factors thoroughly and get them examined by a legal expert before making the purchase:

The Deed Title: Check if the deed title is in the name of the seller and he has the full right to sell it. Insist upon seeing the original and not just a photocopy.

Encumbrance Certificate: This document can be procured from the sub-registrar’s office where the deed is registered. It declares that the land is free of legal hassles and unpaid dues.

Property Tax Receipts and Bills: Ask for the originals again and ensure all the payments have been made; non-payment could lead to legal complications and more expenditure in the future.

Apart from these, you must also make sure loans on the land have been repaid, and a release certificate has been issued by the bank. Get the property valued for the exact land measure.


To purchase land, the following documents are required from the seller’s end: Original Land Deed of the current owner, known as the 7/12 document and also the previous owners with the proper names on the title. Secondly, an Encumbrance Certificate from the Sub-registrar’s office for the at least the last 30 years. Thirdly, Release Certificate from the bank, stating that the loan on the land has been completely repaid. And finally, the original property tax receipt and other bills relating to the plot.

For the buyer, the requisite documents include the title deed after it has been transferred to the buyer’s name, written by a Government licensed Document writer, the receipt from payment of stamp duty charges.

Now, you can get your land registered in the sub-registrar’s office or have your name added in the village office records.

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