• Buying agriculture land

Hello,

I plan to buy 2 to 3 acres of agriculture land from a Seller after getting a farmer's certificate.

The Seller says he has Power of attorney from the Land owner(farmer) and hence I need to pay him and do all the transactions with him.

Since I am buying for the first time, I want to be careful about any types of frauds/issues that can occur with such a Purchase.

I am aware about the "bhogwatdar number" needs to be 1 in the Saatbara document.

But what all other documents and verification I should carry on for such a land before the Purchase.

The Seller says that the Saatbara is in the name of Single Owner.

Thanks
Asked 3 months ago in Property Law
Religion: Hindu

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13 Answers

Dear Client,

Before you purchase agricultural land under a Power of Attorney, ensure: 

 

1. **PoA Verification**: Registered and authorized to sell.

2. **Ownership Check**: The *Saatbara* extract shows it corresponds with the owner and also shows no encumbrances.

3. **Title Search**: Has not been used to claim any disputes or other claims on the land at any point of time during the past 30 years.

4. The land could be sold to you strictly under the law using your farmers' certificate as legitimate proof for the transfer.

5. **EC (Encumbrance Certificate)**: Ensures lien free status of the property.

6. **Mutation Records**: Asserts rightful ownership and inheritance. It can save one from all fraud as well as legal conditions.

Thank you.Hope this answers your query.

Anik Miu
Advocate, Bangalore
10312 Answers
121 Consultations

The saatbaara document alone is not sufficient.

On whose name is the registered title document?

Whether the power of attorney document is executed by a registered document or by an unregistered document, if unregistered then it is not legally valid for selling immovable property.

Whether in the power of attorney document is it mentioned that the amount should be paid to the power agent or in his favor , if not then the payment by cheque or DD may be paid in the name of the owner

Have you checked the mutation records?

Have you checked the previous title chain document?

Did you obtain a legal opinion?

You may carry out all the steps as per the list above before buying the property.

T Kalaiselvan
Advocate, Vellore
87508 Answers
2349 Consultations

Is power of attorney holder family member of seller 

 

2) is POA registered 

 

3) insist that seller execute registered sale deed in your favour 

 

4) take 30 years title search to check that title is clear and marketable 

 

5) check whether seller has original chain of documents of title 

Ajay Sethi
Advocate, Mumbai
97306 Answers
7860 Consultations

- As per law, a POA having no right to transfer /sell the property in his name, and only a valid title deed holder can sell the property. 

- However, if he is family member of the landowner , then he can sell the property , if the said POA is registered from the registrar. 

Mohammed Shahzad
Advocate, Delhi
14695 Answers
224 Consultations

You need to check 7/12 extract, Ferfar and Form 8D. kindly check documents from 1955 onwards whether the land comes 32G and any other sanctions for government.

Ganesh Kadam
Advocate, Pune
12997 Answers
263 Consultations

You have not replied to queries raised by me 

 

is POA holder family member of seller 

 

if he is not family member it has to be stamped as conveyance 

Ajay Sethi
Advocate, Mumbai
97306 Answers
7860 Consultations

in that case it has to be stamped as conveyance . would attract  high stamp duty 

Ajay Sethi
Advocate, Mumbai
97306 Answers
7860 Consultations

if there is defect in title you have to sue the seller to recover your money paid 

 

better apply for bank loan . bank will do due diligence satisfy itself that title is clear and marketable before sanctioning loan 

Ajay Sethi
Advocate, Mumbai
97306 Answers
7860 Consultations

If the vendor is selling the property through his power of attorney agent then the POA document should be executed by a registered document by paying appropriate stamp duty and registration unless the POA will not be considered as a valid document to enable the power agent to sell the property besides it cannot be considered as an authorized document to enable the power agent to execute NOC for transferring the 7/12 records from the name of the original owner to the prospective buyer. 

in that case the seller's title would be defective hence the buyer's title also would be defective and not legally valid.

 

T Kalaiselvan
Advocate, Vellore
87508 Answers
2349 Consultations

If the POA holder is not a family relative then the applicable stamp duty is to be paid and the document should be executed by a registered document,.

T Kalaiselvan
Advocate, Vellore
87508 Answers
2349 Consultations

you have to physically inspect the spot where the property is situated and take the help of surveyor to identify the property you propose to buy and also verify the holder of the revenue records to this property through the revenue department during survey of the property. 

For your further questions, instead of taking a rectification action at a later date, you may better obtain a proper legal opinion from an expert lawyer in the local and proceed only if recommended

T Kalaiselvan
Advocate, Vellore
87508 Answers
2349 Consultations

Dear Client,

In case of a sale from a PoA holder, ensure the PoA is registered and that an express authority to sell the property had been granted to the PoA holder on behalf of the owner. An invalid sale deed executed by a PoA holder under no proper authority can even be declared null and void after the completion of the sale, and so such a check becomes important.

 

To avoid fraud, obtain through a title search at the sub-registrar's office an encumbrance certificate indicating that no claims or encumbrances are encroaching on the said land. Let survey (*Mozani*) ascertain that the land referred to matches the location and description as stated in the 7/12 extract.

 

In case, after due care and precautions taken, title issues or defects arise after the sale, you can claim cancellation of the sale deed and refund under Section 31 of the Specific Relief Act, 1963, whereupon cancellation is permitted when a contract becomes voidable or the fact is that there is defect in title.

Thank you.Hope this answers your query.

Anik Miu
Advocate, Bangalore
10312 Answers
121 Consultations

- As per the Supreme Court decision of Suraj Bhan v. Financial Commissioner, it was observed that an entry in revenue records does not confer title on a person whose name appears in record-of-rights.

- Further, entries in the revenue records or jamabandi have only “fiscal purpose.

- Further, the Supreme Court held that , The Court held that a POA cannot be used to transfer immovable property without the principal's express consent and execution of the necessary documents.

Mohammed Shahzad
Advocate, Delhi
14695 Answers
224 Consultations

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