Things to keep in mind when buying farmland in India

Farmland in India

Buying farmland in India can be a daunting task if you don’t understand the legal guidelines. Therefore, one must be vigilant about the documents involved and, above all, confirm the title of ownership, the required certificates of authorization and the land agreement, especially when more than one owner is involved.

This will ensure that the land you are purchasing is a lucrative business and will help keep scammers at bay. We hope this essential guide to legal advice for buying farmland will help you make an informed decision and mitigate the risks.

Check farmland title deeds to verify ownership: The title deed confirms the seller’s name and also checks whether the seller has the right to sell the property or not. If the current title deed and the previous title deed have more than one owner for the existing farmland, then it is suggested to have it reviewed by a lawyer before registering the documents to ensure that the owner does not. has not given access to others across the earth. .

Check the documents and sign a land sale contract: After verification, the seller and the buyer draw up and sign a written document mentioning the amount of the deposit, the payment of the balance and the effective period of sale. All these documents must be signed under the supervision of a lawyer and two witnesses. It is an essential part of buying farmland. You must therefore be extremely careful and read the terms and clauses carefully before signing the document.

Find out about stamp duty in the field: This is another essential aspect of buying real estate. Stamp duty is the tax imposed by the government on a property. Government-imposed stamp duty on land varies from state to state. It is a legal document that can be used in court.

Documents required for land registration: Land registration is a document that sets out the transfer of ownership to the buyer’s name and must be signed by both parties at the registrar’s office. According to the Indian Registration Act of 1908, the deed is supposed to be registered in the office of the Deputy Registrar. Documents such as – house tax receipts, prior deeds, original deed as well as two witnesses are required at the time of land registration.

Deed of sale / land transfer: It is a document that transfers ownership from the seller to the buyer. These documents also include all the required details such as location, measurements and boundary details.

Retrieve the certificate of encumbrance and land measurement: This particular document assures the buyer that the agricultural land is free from any legal issues or complaints. The charge certificate can be obtained from the office of the Deputy Registrar.

Make sure there are no pending tax receipts and property statements: It is advised that before purchasing the property the buyer should make sure that there are no overdue invoices or notices regarding the land. They should also check that water, electricity or other bills are all clear and up to date.

Modification of the title of the Agricultural Land: Once all legal procedures and vital aspects of purchasing agricultural land are completed, the name of the new owner of the land is added to the village office register.

Rules and restrictions when buying agricultural land: Before you consider buying agricultural land in India, you should know that the legal process varies from state to state. Here are some rules and restriction details of a few states –

State

Rules and restrictions

Tamil Nadu

There are no restrictions if you plan to invest in agricultural land. The maximum amount of farmland that can be purchased is 59.95 acres. By order of the district collector, land can be converted to non-agricultural land if no agricultural activity is carried out during the period of the last ten years.

Andhra Pradesh

In Andhra Pradesh, anyone is allowed to buy agricultural land, regardless of their profession. However, there is a maximum land area limit. The family unit can own or buy a maximum of 10 acres in class A, meaning irrigated land, and 54 acres in class K, which includes dry and non-irrigated land.

Kerala

As in Tamil Nadu, also in Kerala, anyone can buy farmland. The maximum limit of the land area ceiling according to the Kerala Land Reforms Act, 1963 is as follows:

a) If a person is a single adult or a family of one surviving member, 5 standard acres subject to a maximum of seven and a half acres.

b) For a family of two or more members but no more than five members, 10 standard acres and up to a maximum of 15 acres.

c) In a family of more than ten members, the standard limit is 10 acres, increased by 1 acre for each member over 5, and the maximum limit is 20 acres.

d) For anyone other than a joint family, the standard limit is 10 acres, subject to a maximum of 15 acres.

Maharashtra

Maharashtra only allows a farmer to purchase agricultural land with a maximum limit of 54 acres.

Haryana

Some areas of Haryana have been declared “controlled areas”. Suppose someone wants to buy agricultural land in these areas for non-agricultural purposes. In this case, they will need to obtain a certificate from the Haryana government indicating the land use change.

Gujarat

A non-farmer cannot buy agricultural land in Gujarat. Previously, only those belonging to the state of Gujarat were allowed to invest in agricultural land; however, in 2012, the Gujarat High Court issued a judgment allowing any farmer in the country to purchase agricultural land in Gujarat.

Himachal Pradesh

Only a farmer belonging to Himachal Pradesh is allowed to buy agricultural land. People from other states would need prior authorization from the government of Himachal Pradesh u / s 118 of the HP Tenancy and Land Reforms Act. And the maximum limit of the cap is 160 bighas or 32 acres.

Amalia H. Mercado