38 Legal Points to Take Care While Buying Land

Check List of Major Legal Points before Buying Land:

  • All the transactions related to the property during last 30 years from the office of Sub-registrar/Talati.
  • Copy of 7 x 12 abstract of last 30 years showing name of owners during last 30 years.
  • Whether the land is agricultural or non agricultural?
  • Copy of N.A. order from competent authority along with approved plans.
Things to Keep in Mind Before Buying Land
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  • Whether the land falls under Tenancy (Agricultural) act or Urban Land Ceiling act? If so whether premium has been paid for sale or whether you will have to pay premium before the sale deed is done?
  • Check whether the land belongs person to the of schedule tribe, as many states prohibit any purchase from persons of Schedule tribe.
  • Check whether there are any easement rights over the property like right of way, right of water, right of air and ventilation etc.
  • If it is leased land, what is the outstanding rent and what are lease condition? Whether the lease deed prohibits the sale?
  • Check the area of the land on the record of City Survey officer/District inspector of land records and compare it with actual area on site?
  • Check whether land is in appropriate zone and whether zoning certificate has been obtained from urban development authority.
  • Check whether construction permission has been obtained or not?
Also Read: 29 Factors that can Evolves your Land Value
  • Check whether the property gets effected by any development plan of city or town planning scheme of the city. If so study the impact, compensation available and betterment charges to be paid to the authority?
  • Check who has the possession of the land?
  • Check whether there are any illegal/unauthorized occupants on the plot of land?
  • Check documents of ownership and its heirarchy.
  • What is the legal status of the owner? In whose name the property stands? e.g. Individual, Hindu Undivided Family, Partnership firm, Co-op. Society, Pvt. Ltd. Co., Non Trading Corporation, Registered Trust etc.
  • If the land is owned by the Hindu Undivided Family the details must be obtained of all members along with family tree and everyone’s consent/signature is must.
  • Also check whether any minor has any interest in the property and if so details of the guardian and policy for preserving minor’s interest.
  • Check whether any minor has interest in the property and if so get proper consent from the court.
  • If the property is owned by a partnership firm, check whether it is a registered firm. Check the certificate of registration from registrar of firm. If only one partner is doing all the transactions, whether he has a valid Power of Attorney from all other partners?
  • If the property is in the name of company, check whether the Board of Directors/General Board has made resolution to sale the property and whether the director who is doing the transactions has been authorized by the Board of Directors?
  • If the property is owned by Co-op. Society/Non Trading Company the copy of registration certificate with competent authority. Byelaws of the Society/Company/Non trading Company. Resolution of the society resolving to sale the property and authority to the President/secretary.
  • Allotment letter by the society.
  • No due certificate by the society.
  • Check whether any legal cases are pending in courts of law or whether any stay order has been passed by any court. Obtain such declaration from the seller or get such declaration included in sale deed.
  • Check whether there is any decree or stay, attachment order by any court or revenue authority?
  • Check whether there are any prohibitive conditions in the old documents.
  • Check whether any other person has any rights related to the property like right of way, right to share common infrastructure etc.
  • Check whether all duties and taxes to all legal authorities, Govt., house tax etc. have been paid till date.
  • Check whether there is any other lien or mortgage over the property?
  • Check whether any person has tenancy rights/lease rights over the property?
  • Check whether any agreement to sale has been entered into with other person prior to sale transaction with you? Get a declaration to that effect in the sale deed.
  • Also check whether any rights including right to development has been given over the property to others?
  • If the property has been obtained under will, the copy of will and check whether a probate has been obtained from court?
  • Whether the will has been challenged by someone or not?
  • Check whether all the parties connected with property have signed the sale deed or will sign while execution of documents?
  • Check whether adequate stamp duty has been paid over the property during the last project?
  • Also check whether any payment is pending for payment of stamp duty against the property?

Also Read:

Check List Point While Buying a House
How to Sell your House for a Better Price?
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