What Documents Are Required to Verify When Buying a Plot?

Are you planning to buy a plot? Plots often have several advantages over flats, such as lower initial investment and the freedom to build according to your needs. However, buying a plot requires careful scrutiny of documents to avoid legal troubles in the future. Missing any essential document can make the transaction illegal and lead to disputes.

Buying a plot is a big decision, and it’s important to make sure everything is legally correct. Checking the documents properly can save you from future troubles. Here’s a simple guide on the documents you need to check when buying a plot.

Non-Agricultural Land Use Certificate

India is primarily an agricultural country, and all land is initially categorized as agricultural. To use the land for construction, it must be converted to non-agricultural land. This certificate will specify whether the land can be used for residential, commercial, or industrial purposes. Always insist on verifying this certificate to ensure the land is legally usable for your intended purpose.

Land Deed

Known as the 7/12 document, the land deed includes records of rights, ownership details, tenant information, and revenue obligations. Form VII provides details about ownership, while Form XII contains information about the crops grown on the land. Ensure that the deed is clear of any disputes and shows the seller’s right to sell the property.

Original Sale Deed

The sale deed, also known as the title deed, is a legal document that outlines the terms and conditions of the sale. It includes the property’s price, description, and details of ownership transfer. Before finalizing the purchase, have the sale deed reviewed by a lawyer to ensure that all terms are correctly stated and no essential details are missing.

Legal Heir Certificate

If the landowner has passed away, the current seller must have a legal heir certificate. This document verifies that the seller is a rightful heir and has the authority to sell the plot. Without it, you may face legal challenges from other potential heirs.

Encumbrance Certificate

An encumbrance certificate confirms that the land is free of any legal dues, mortgages, or litigation. This document is crucial for securing a home loan, as banks only provide loans for properties with a clean legal history. Always check for an encumbrance certificate to ensure the property has no hidden liabilities.

Power of Attorney

If the seller is not the direct owner and is selling on behalf of someone else, verify the power of attorney (PoA) document. This legal document grants authority to another person to manage the sale. Ensure that the POA is legally valid, properly registered, and authorizes the holder to sell the plot.

No-Objection Certificate (NOC)

A No-Objection Certificate from relevant local bodies, such as the municipal corporation and environmental authorities, confirms that there are no objections to selling the plot. Additionally, obtain a no-dues certificate for property taxes and any loans associated with the land. Failure to clear past dues can result in penalties for the new owner.

Celebrities Who Have Recently Invested in Plots

Several celebrities have recently invested in plots, showcasing the growing trend of owning land:

• Suhana Khan – Alibaug
• Kriti Sanon – Alibaug
• Amitabh Bachchan – Ayodhya, Alibaug
• Salma Khan – Carter Road, Bandra

Title Deed

The title deed is the most important document. It shows who owns the land. Make sure the seller has the right to sell the land. Check if the land title is clear and has no disputes. A lawyer can help verify this.

Encumbrance Certificate (EC)

An Encumbrance Certificate proves that the land is free from any legal dues. It shows that the property has a clean record with no pending loans or legal issues. You can get this certificate from the sub-registrar’s office.

Sale Agreement

The sale agreement includes the terms and conditions of the sale. It mentions the plot’s price, advance payment, and time for full payment. Make sure to read all terms carefully and ensure all verbal promises are mentioned in the agreement.

Approved Layout Plan

The layout plan shows the plot’s exact location and boundaries. Ensure the layout is approved by the local town planning authority. Unauthorized plots can cause legal issues later.

Land Use Certificate

This certificate shows the permitted land use, such as residential, commercial, or agricultural. Make sure the land use matches your purpose. Check with local authorities to ensure the land use certificate is up-to-date.

Property Tax Receipts

Check the latest property tax receipts. This ensures the seller has paid all taxes, and there are no dues. Verify the owner’s name on the receipt to match the seller’s name.

Mutation Register Extract

This document shows the transfer of ownership in the revenue records. It’s important to ensure the seller’s name is listed as the property owner. This confirms the legality of the sale.

Power of Attorney (if applicable)

If the sale is happening through a power of attorney, check the document thoroughly. Ensure the power of attorney is registered and legally valid. Verify the rights given to the person acting on behalf of the owner.

Possession Certificate

A possession certificate proves that the seller has possession of the land. It is usually issued by the local authorities and helps ensure there are no illegal occupiers on the plot.

Release Certificate (if under mortgage)

If the plot was mortgaged, you need a release certificate from the bank. This document shows that all loans are cleared and the land is free of financial liabilities.

Agricultural to Non-Agricultural Land Conversion Certificate (if applicable)

If you are buying agricultural land for non-agricultural purposes, check for a conversion certificate. This document legally converts the land use from agricultural to residential or commercial.

Subdivision Plan

If the plot is part of a larger piece of land that was subdivided, check the subdivision plan. It should be approved by local authorities to avoid future disputes.

Housivity.com POV

Buying a plot is a significant investment. It’s essential to perform due diligence by reviewing all relevant documents with a lawyer. Missing or incomplete documents can signal potential legal issues, so always seek explanations from the seller if any document is not available. If issues remain unresolved, it’s best to reconsider the purchase.

Buying a plot involves a lot of legal paperwork. Checking these documents ensures a smooth purchase without any legal hassles later. Always take the help of a legal expert to verify the documents to safeguard your investment.

Ensure to keep copies of all documents for your records. A thorough check of these documents will make your plot buying experience safe and stress-free!