Hi, First you have to verify the RTC and Encumbrance Certificate for 30 years in which Survey Number you are going to buy and thereafter based on the above documents. The advocate will investigate what are all documents are required to obtain.
Purchase of agricultural land
Hello Team, I am currently living in the US and planning to buy 2.5 acres of agricultural land in Mysore, Karnataka. I’m not from a farmer’s family, but, my in-laws are farmers since 40yrs. Note: I will be giving GPA to my father to perform all the actions on my behalf. I have the below questions on legalities for which I am looking for your valuable answers: 1. What are the top 5 documents related to the farm land that I need to get verified from an advocate before I even make a small down payment to the seller? 2. Is there any title company as such or any alternative way, where I can deposit my down payment money, instead of directly paying it to the seller? 3. What are the top 8 or 10 questions as a buyer, that I need to ask the seller of the farm land while having a conversation about purchasing the land? 4. Any other due diligence that I will have to make sure before the purchase? I would really appreciate a DETAILED response on the above ask. Thank you everyone in advance! Regards, AJAY SHASTRI Email: [deleted]
Asked 4 years ago in Property Law
Religion: Hindu
5 Answers
1) NRI cannot purchase agricultural land in Karnataka
2) check whether seller has original documents of title ie sale deed
3) check whether mutation of property is in name of seller
4) seller will not agree to money being deposited with third party
5) if seller has inherited agricultural land check whether he has legal heir certificate and consent of other legal heirs has been obtained for mutation of property in name of seller
- As per rule in Karnataka for purchasing agricultural land:-
- You need to have agriculturist roots ( i.e: Family /extended family has to have documented evidence of farming)
- For a non-agriculturist , your annual income should be less than 25 Lakh P.A .Previously this was only 5 Lakh P.A which was hiked recently to 25 Lakh Per Annum. Hence
- You should approach to concerned district Deputy Commissioner ‘s office , for getting agriculture family certificate and to apply for permission to buy land.
- But the permission is granted with a condition that you will cultivate the land for 5 years from the date of purchasing the land.
1. Title deed of the Land , Encumbrance certificate , Mutation , survey number etc
2. Depend upon the Seller to accept the amount
3. As above
4. Check the Mutation of the property in the name of seller
1. Legal tips for buying agricultural land in India
- Title deed of the land plot.
- Agreement for sale.
- Stamp duty on the land.
- Registration of the land.
- Conveyance deed or sale deed of the land.
- Tax receipt and bills.
- Encumbrance certificate.
- Measuring the land.
- The entire legal procedure for the purchase of the property is completed, only if the name of the new owner is added to the village office record.
- A person staying abroad can sell his or her land in India, by authorising a third party to sell the land on his or her behalf. In such cases, the power of attorney should be witnessed and duly signed by an officer in his province’s Indian embassy.
2. There is no such provision in law for this facility you desire, you can withhold payment until your lawyer gives a final recommendation towards purchase of the property.
3. You can discuss with the buyer about the documents to be produced by him as listed above.
4. In some states like Telangana, anyone can buy agricultural land, regardless of whether or not they are farmers. However, in other states, like Karnataka, only registered farmers or those from farming families can buy agricultural land.
Now any Indian, or a trust, society, company or an educational institution can buy farmland in Karnataka regardless of the buyer's annual income from non-agricultural sources.
If you are NRI you can't buy the same only it can be inherited by you. If you still needs to go ahead you need special permission from RBI in this matter
