Property registration, land records & Building Approval Procedures in India: February 2014

Various States in India follow different procedures with respect to Purchase of Agricultural land. In some States in India, only an Agricultarist can Purchase an Agricultural land but in certain other States, there is no restriction for Purchase of Agricultural land.

Non Resident Indians (NRI) and Persons of Indian Origin (POI)

All over India, NRI’s, PIO’s and Overseas Citizens of India can’t Purchase Agricultural land/Plantation Property/Farm House. However they can inherit Agricultural lands.

Tamil Nadu

In Tamil Nadu, there is no restriction for Purchase of any Agricultural land. Anyone can Purchase an Agricultural land. However the maximum extent of land which can be Purchased is 59.95 Acres of land. In Tamil Nadu, an Agricultural land (dry land) can be converted into a Non agricultural land by the orders of the District Collector provided that no Agricultural activity had been carried out in the said land during the last 10 years prior to the date of conversion.

Karnataka

Only an agricultarist can purchase an agricultural land in the State of Karnataka. Non agricultarist cannot buy an agricultural land in the State of Karnataka. Non Agricultarist is a person whose income from any source exceeds Rs.2 lakhs/annum. However under Section 109 of Karnataka Land Revenue Act, 1964, Social or Industrial Organisation can Purchase an Agricultural land in the State of Karnataka with the previous permission of the Government of Karnataka.

Kerala

Like in Tamil Nadu, anyone can Purchase an Agricultural land in the State of Kerala. The maximum Ceiling limit of land area as per Kerala land reforms Act, 1963 is as follows (It is also applicable for Agricultural land)

a a) In case of an adult unmarried person or a family consisting of a sole surviving member, five standard acres and that however the ceiling area shall not be less than six and more than seven and half acres in extent

b) In the case of a family consisting of two or more but no more than five members, ten standard acres and that however the ceiling area shall not be less than twelve and more than fifteen acres in extent

c) In the case of a family consisting of more than five members, ten standard acres increased by one standard acre for each member in excess of five and that however the ceiling area shall not be less than twelve and more than twenty acres in extent

d) In the case of any other person, other than a joint family, ten standard acres and that however the ceiling area shall not be less than twelve and more than fifteen acres in extent

Maharashtra

Only an Agricultarist can purchase an Agricultural land in the State of Maharashtra. However in case if a person holds an Agricultural land anywhere else in India, he can still be deemed an Agricultarist in the State of Maharashtra. The maximum ceiling limit on Purchase of Agricultural land in Maharashtra is 54 Acres.

Gujarat

Agricultural lands can’t be Purchased by a Non Agricultarist in the State of Gujarat. Earlier only Agricultarist in the State of Gujarat could Purchase an Agricultural land in the State of Gujarat but in 2012, the Gujarat High Court had ordered that any Agricultarist in India can Purchase an Agricultural land in Gujarat.

Madhya Pradesh and Rajasthan

In the States of Madhya Pradesh and Rajasthan, there are no restrictions for Purchase of Agricultural land. Earlier under Section 17 of the Imposition of Ceiling on Agricultural Holdings Act, 1973, there were certain ceiling limits on buying Agricultural land from the `Khatedars’ the State of Rajasthan and the provisions of this section were amended in the year 2010 wherein anyone can Purchase an Agricultural land in the State of Rajasthan now. However one has to apply for conversion within a year from acquisition and commence the proposed non agricultural use within 3 years from the date of conversion in Rajasthan.

Haryana

The State of Haryana had declared certain areas as Controlled areas and in case of Purchase of any Agricultural land in these Controlled areas for non Agricultural purposes, it requires obtaining Change of Land Use from the Government of Haryana.

Himachal Pradesh

Only an agricultarist belonging to the State of Himachal Pradesh can purchase an agricultural land in the State of Himachal Pradesh. Outsiders can’t purchase Agricultural land in the State of Himachal Pradesh without obtaining the prior permission of the Government of Himachal Pradesh u/s 118 of HP Tenancy and Land Reforms Act. Also the maximum land ceiling limit in the State of Himachal Pradesh is 160 Bighas or 32 Acres

Uttar Pradesh

The maximum ceiling limit for Purchase of an Agricultural land in the State of Uttar Pradesh is 12.50 Acres.

West Bengal

Under the West Bengal Land Reforms Act, private ownership of agricultural land in the state is capped at 17.5 acres for irrigated areas and 24.5 acres for areas that are only rainfed; in urban areas, private ownership is capped at 7.5 cottahs or one-eighth of an acre. Only “tea gardens, mills, workshops, livestock breeding firms, poultry farms, dairies and townships” are exempt from the restrictions of the land reforms Act.

RESTRICTIONS ON SALE OF LAND ALLOTTED TO SC/ST BY GOVERNMENT

In many States in India, land allotted by Government to a Schedule Caste/Schedule Tribe

person can’t be sold without the previous permission of the respective State Government. It is

advised to closely look into the Allotment clauses since certain states impose restrictions on

subsequent transfer of such lands to a general caste person (other than SC/ST) and also there

would be certain minimum number of years within which such lands allotted can’t be sold and

it differs from State to State.

SPECIAL RESTRICTIONS FOR TRANSFER OF LAND BELONGING TO A SC/ST

IN THE STATES OF WEST BENGAL, ODISHA AND JHARKHAND

West Bengal and Jharkhand

Previous Permission of the District Collector/Magistrate is required for Sale of land belonging to a Schedule Caste/Schedule Tribe to a General Caste Person in the States of West Bengal and Jharkhand. However no such permission is required if a Schedule Caste Person Sells his land to another Schedule Caste Person or if a Schedule Tribe Person sells his land to another Schedule Tribe Person.

Odisha

Previous Permission of the Sub Collector Cum Revenue Officer is required for Sale of land belonging to a Schedule Caste or a Schedule Tribe Person to a General Caste Person. This Permission is required even if a Schedule Caste Person sells land to a Schedule Tribe Person. However no such permission is required if a Schedule Caste Person Sells his land to another Schedule Caste Person. Moreover in Schedule Tribe Land Notified area, nobody can transfer the land belonging to a Schedule Tribe Person.

Shyam Sunder

Advocate, Chennai

09841136901

(Shyam Sunder - Author of Book titled `Property registration, land records and Building Approval Procedures followed in Various States in India- First of its kind Book being Published in India)

Book available in:

Flip Kart (Online)

Land Mark (in all major cities in India)

Chennai – Sitaraman & Co (044-28111516, 28117069), Higginbothams and Odessey

Sri Vidya Devi Publishers (044-24936193/9841136901)

Coimbatore – Odessey (Brooksfield Mall)

Bangalore – MPP House (080 – 41136866, 22260706)

Hyderabad – Asia Law House (040 – 24742324)

Mumbai – Students Book Centre (Snow White Publishers – 022 – 22050510/22080668)

The Hindu – Habitat (Property Supplement) – 14^th Dec, 2013 - Book Review

http://www.thehindu.com/features/homes-and-gardens/q-and-a/a-guide-to-realty/article5455252.ece

Economic Times – 4^th Dec, 2013

Only a few states follow good property registration procedures: G Shyam Sunder
G Shyam Sunder, a Chennai-based advocate, points out to the benefits of standardising procedures.

click here to read the full article >>

This article can also be accessed if you copy and paste the entire address below into your web browser.
http://economictimes.indiatimes.com/markets/real-estate/news/only-a-few-states-follow-good-property-registration-procedures-g-shyam-sunder/articleshow/26851644.cms?intenttarget=no&mailtofriend=yes

Times of India – 1^st Dec, 2013

http://articles.timesofindia.indiatimes.com/2013-12-01/chennai/44618823_1_ec-states-and-union-territories-departments

The New Indian Express – 21^st Nov, 2013

http://newindianexpress.com/cities/chennai/A-one-point-reference-for-property-and-land-records/2013/11/21/article1901988.ece

Business Line – 23^rd Nov, 2013

http://www.thehindubusinessline.com/industry-and-economy/real-estate/watch-out-when-you-buy-property/article5379637.ece

Nanayam Vikadan – 15^th Dec, 2013 (leading Tamil Financial Weekly)

http://www.vikatan.com/new/article.php?module=magazine&aid=90315

http://nanayam.vikatan.com/index.php?aid=4337

Dinamalar – 19^th Nov, 2013, 19^th Dec, 2013 and 12^th Jan, 2014 http://www.dinamalar.com//district_detail.asp?id=852526&dtnew=11/19/2013

http://www.dinamalar.com/splpart_detail.asp?id=93&dtnew=12/19/2013

http://epaper.dinamalar.com/PUBLICATIONS/DM/DINAMALAR/2014/01/12/ArticleHtmls/12012014408018.shtml?Mode=1 (Book Review)

GENERAL CHECK LIST FOR PURCHASE OF VARIOUS TYPE OF PROPERTIES

Normally Advocates conduct title investigation verification to their Clients. In many instances, intending Purchasers (incl buyers of Apartments) who avail loan to Purchase Properties do not know what documents should be possessed by them since they feel that the Bank which lends loan to them will take care of the required title documents. This is not a disputed fact. However in the better Interest of the buyers of Property, the following are the general documents which should be verified or scrutinized (rough broad parameters)

I - For Purchase of New Apartments

a) Check Preceeding Parental Documents for last 30 years

b) Check Original title deed documents in the name of the present owner

c) Check latest Patta/Pahani/RTC/Khasra/Khatian/Khatauni/Jamabandi/Thandaper/7/12 Extract (whichever land revenue record applicable in the respective state) issued in the name of the present owner

d) Check Field Map Sketch (FMB Sketch) of the land

e) Check Copy of Layout Proceedings issued by the appropriate authority along with layout plan copy with seal of the appropriate local body and permit issued by the appropriate authority (for layout or scheme) – wherever applicable

f) Check Copy of Gift Deed executed in favour of local body (for Open Space Reservation and Roads) in case if the layout or scheme land exceeds certain specific area prescribed by the respective state – wherever applicable

g) Cross Check the genuineness of present owner land revenue record online (if available in respective States)

h) In case if the Builder is not the owner, check the Development Agreement entered into between the Builder and the Owner and also check whether the Owner has granted Power of Attorney in favour of the Builder. Ascertain the extent to which the owner has given power to the Builder (whether to sell all the developed Flats or only specific number of Flats)

i) Obtain Certified Copy of the latest title deed by which the owner had acquired the title to the Property from the records of the concerned sub registrar office having jurisdiction over the Property to be Purchased (Genuineness of any document can be ascertained only when certified copy of the same is obtained from the records of Sub Registrar Office and compared with the Original)*

j) Obtain Permits issued for construction of building along with copy of sanctioned building plan along with seal of the appropriate authority

k) Check whether the total number of Apartments Constructed tallies with the number of Apartments mentioned in the Permit issued for Approval. The General Thumb Rule is that for each Apartment, there will be only one Kitchen. Count the total number of Kitchens shown in the Approved Drawing Plan and this will reflect the total number of Apartments for which permission had been issued for Construction.

l) The Builder/Developer should not retain any Undivided Share of land (unless any Flat is allotted to him) nor should have any terrace rights over the constructed building. Check whether the Construction Agreement is free from these Clauses.

m) For Societies (mainly in the State of Maharashtra), check Conveyance Deed executed in favour of Society/Condominium concerned. Also Check the Occupancy Certificate (or) Allotment/Possession Letter issued in favour of the member of the Society along with the Share Certificates issued by the Society. Also check Membership Details in the Society.

n) In case if any loan is availed from any Bank/FI by the Builder/Developer, ensure that NOC for Sale of the Apartment is obtained from the concerned Bank/FI. Also ensure that the payment transactions to the Builder/Developer are routed only through that Bank/FI which had granted loan to the Builder/Developer

o) Obtain Non Encumbrance Certificate (Computerised or Manual - wherever applicable) for last 30 years

II - For Purchase of Second Hand Apartments

a) All the Check list mentioned for Purchase of new Apartment

b) Obtain latest Original Property tax receipt, Water tax receipt and Electricity Charges receipt issued in the name of the present owner

c) In most cases for Purchase of Second Hand Apartments, the Parent Documents will be Xerox and only the Original Sale Agreement and Original Construction Agreement executed with the Builder/Developer and Original Sale Deed document executed in favour of the first Purchaser shall alone be available.

How to detect property fake documents?

How to ascertain title genuineness of land, Apartments and other kind of Properties?

How to verify online ownership of land in various states in India?

How to know Building Approval Procedures followed in Various States in India?

Book titled `PROPERTY REGISTRATION, LAND RECORDS AND BUILDING APPROVAL PROCEDURES FOLLOWED IN VARIOUS STATES IN INDIA’ will have answers for all the above said queries. (Author: G.Shyam Sunder, Advocate, Chennai, Ph:09841136901)