The document provides guidance on important documents to check before purchasing a plot of land in Bangalore, India. Key documents include: (1) title deed to verify seller ownership, (2) encumbrance certificate to ensure the land is free from legal disputes, and (3) tax details and approvals to confirm legal status. Additional steps recommended include measuring the land, checking development potential, and drafting a sales agreement as part of the registration process. Thoroughly checking all required documents is advised to avoid issues when buying a new plot.
The document provides guidance on important documents to check before purchasing a plot of land in Bangalore, India. Key documents include: (1) title deed to verify seller ownership, (2) encumbrance certificate to ensure the land is free from legal disputes, and (3) tax details and approvals to confirm legal status. Additional steps recommended include measuring the land, checking development potential, and drafting a sales agreement as part of the registration process. Thoroughly checking all required documents is advised to avoid issues when buying a new plot.
The document provides guidance on important documents to check before purchasing a plot of land in Bangalore, India. Key documents include: (1) title deed to verify seller ownership, (2) encumbrance certificate to ensure the land is free from legal disputes, and (3) tax details and approvals to confirm legal status. Additional steps recommended include measuring the land, checking development potential, and drafting a sales agreement as part of the registration process. Thoroughly checking all required documents is advised to avoid issues when buying a new plot.
The document provides guidance on important documents to check before purchasing a plot of land in Bangalore, India. Key documents include: (1) title deed to verify seller ownership, (2) encumbrance certificate to ensure the land is free from legal disputes, and (3) tax details and approvals to confirm legal status. Additional steps recommended include measuring the land, checking development potential, and drafting a sales agreement as part of the registration process. Thoroughly checking all required documents is advised to avoid issues when buying a new plot.
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Get Your Documents Right
(a) Title Deed: This document guarantees that the seller is the undisputed owner of the land. Make sure to collect the original document and not a photocopy. After receiving the documents, check whether the owner has complete rights over the property. This can be done by cross-checking on the registration website of the Karnataka Government. If possible, check for previous title deeds of the land.
(b) Encumbrance Certificate (EC): This document helps in ensuring the land is free from any legal disputes. This can be obtained from the sub-registrar’s office in which the Sale Deed of the land would have been registered. EC certificate can be acquired for the last 13 or 30 years. If you’re buying land in Karnataka, you check online by accessing this link: Kaveri Online Services
(c) Release Certificate: This is applicable only if you’re purchasing a resale plot. It is mainly done to check that the seller is free from any kind of loans taken for the plot. This can be confirmed by checking the bank release certificate.
(d) 7/12 Uttara: Also known as Original Land Deed, you should request the present owner and previous owners to present the original land deed.
(e) Taxing Details: Always ensure to gather all original bills and receipts from the seller.
(f) NA (Non Agricultural Land) Order: You should always make sure that your land is Non-Agricultural. Multiple types of NA can be obtained:
NA- Residential
NA-Warehouse NA- Commercial
NA-IT/ITeS
NA-Resort
You can request for NA-Residential copy from your seller.
(g) Local Approvals: All approvals related to BBMP (Bengaluru Mahanagara Palike), BDA (Bangalore Development Authority), BMRDA (Bangalore Metropolitan Region Development Authority- for Taluk level), BIAAPA (Bangalore International Airport Area Planning Authority) and other required approval.
(h) POA (Power of Attorney): In case the owner of the plot is an NRI, you can seek for POA certificate from the owner.
2. Get Going with the Ground Work: Post the paperwork, you can start with the ground activities:
(a) Land Measuring: With the help of a surveyor you can start measuring the dimensions of the plot.
(b) FSI Feasibility: Floor Space Index (FSI) helps in deciding the extent of land that be constructed.
For example, if you have a plot measuring 3000sq.ft. with an FSI of 50%, then you can build on 1500 sq. ft. of land.
(c) Appreciating Potential: Make sure to invest in land that gives good returns for future resale value. Always look for the location, city proximity, groundwater availability, drainage facility and other conditions. 3. Now Starts the Actual Process: Post the completion of arranging documents from Step1 and Step 2, as a buyer you can initiate your registration process.
(a) Sales Agreement: The first step is to draft a Sales Agreement between both the involved parties. Your document should include the following particulars:
Land Particulars
Agreed Cost Finalization between both seller and buyer
Advanced Amount received from the buyer
Date for Actual Sale
Clauses for Cancellation
(b) Title Deed: You are supposed to receive a Title Deed licensed from a government document writer.
(c) Receipt obtained stamp duty payment: All the above-mentioned documents can be produced before the sub registrar’s office for registration. With lands pricing above 5 Lakhs, the seller of the land must submit his PAN Card or Form 16 during the registration process. Even you require 2 witnesses during the course of action.
You as a buyer are required to pay for your registration fees, stamp duty charges and document writer’s fees.
Once your land has been registered you can start your house plan approval process. Hope this answer has clearly answered all your queries related to purchasing a plot in Bangalore.
Before you buy a property, you must check all property documents to make sure that you buy a genuine property. The documents that need to be checked are different for under construction and ready to move properties. Here is a list of all property documents to check before buying a flat or plot.
Property Documents to Check Before Buying a Flat or Plot
Under Construction Property
At the time of Booking
1. Land Records
When you want to book a new property, ensure that the builder owns the land where he is proposing the project. Land Records give details about ownership, rights, obligations and mortgages of the property. You can check land records with the Survey Nos. Nowadays, land records for most states are made available online. For more details, check out Land Records Guide.
2. Land Use Certificate
Before developing any property, a builder needs Land Use Certificate or Change of Land Use (CLU) certificate from the urban authority. Residential projects cannot be built in a commercial or industrial zone or on agricultural land. You can ask the builder to produce a copy of Land Use or CLU Certificate.
3. Layout Approvals
Many builders sell properties under soft launch without getting layout and building approvals. They will tell you that rates will go up significantly once all approvals are received. But never fall into this trap as approvals may not come anytime soon and you can get stuck for a long time. You should never invest in a project which has not received approvals. If any builder avoids showing you the copy ofapproved layout, you should refrain from investing in such project.
4. Master Plan
Builders and property consultants will often show you upcoming infrastructure projects like Airport, Metro, Expressway, SEZ etc. on the brochure. Again a word of caution here. A news item should never be the basis of such claims. You can cross check these with the approved Master Plan of the city. In the Master Plan, you can also check whether the project falls into residential zone or not. Check out Master Plans of Indian Cities. 5. No Objection Certificates & Clearances
The builder needs to obtain clearances from Electricity, Water, Fire and Safety authorities and environment clearance etc. Make sure that the builder has received all clearances.
6. Certificate of Commencement
A Certificate of Commencement, given by the Town Planning Department, is mandatory to commence
any construction of a property. This certificate is given only once all other approvals and clearances are obtained by the builder.
7. Allotment Letter
Once you give the booking amount, the builder will sign an allotment letter with you. It will mention payment plan and other important agreement clauses. Before you handover booking amount cheque, make sure that payment plan and other clauses are clear to you. You should ensure that there is a penalty clause for any delay in possession.
8. Builder-Buyer Agreement
Once you pay 20-30% of basic cost of property, the developer will signBuilder-Buyer Agreement with you. This will be a detailed agreement that will have layout plan, detailed specifications & features of the property. It will mention the possession time & penalty amount in case of delay. Make sure that you go through the agreement completely before you sign on it.
After Construction
9. Completion Certificate Completion certificate is issued by Municipal Corporation once the project is completed as per the approved layout plan.
10. Occupancy Certificate
Occupation Certificate is also issued by Municipal Corporation after ensuring that basic amenities like Electricity Connection, Water Supply, Sewage Connection etc. are provided as per the approved plan.
Before you are handed over possession, make sure that the builder has received Completion Certificate and Occupancy Certificate.
At the time of Possession
11. Sale Deed Registration
Once the project is complete in all respects and has received Completion and Occupancy Certificates, the Builder will transfer the property in your name by executing a Sale Deed that will be registered at the Registrar’s office. Sale Deed is the main ownership document and you should keep it safely. In case, you have taken a home loan, original copy of Sale Deed will be handed over to the Bank till the time you retire your complete loan.
12. Possession Certificate
Once, Sale Deed is registered in your name, the builder will give you possession certificate after handing over physical possession of the property.
Ready to Occupy Property
1. Original Title Deed
In a Ready to Occupy property, the first document that you should see is the title deed. Confirm that the property is in the name of the seller and he has the full right to sell it. Always insist on seeing the original deed to make sure that the property is not mortgaged. You have to also make sure that the property is not already sold in part or full to anybody else. Do not buy a property if the title is not clear. You can hire a lawyer for title verification to be sure.
2. No Encumbrance Certificate
You should also make sure that the plot or house does not have any legal dues. An encumbrance certificate, available from the sub-registrar office where the Sale Deed is registered, states any legal dues and complaints against the said property. You can ask seller to provide “No Encumbrance Certificate” for minimum 13 years or to have more clarification, you can get encumbrance certificate for last 30 years.
3. NoC from Bank in case of Bank Loan
In case the seller has taken a home loan and the property is mortgaged with a Bank, the seller should take a No Objection Certificate from the Bank or if all dues are cleared, then a No Dues Certificate.
4. Share Certificate
In case you are purchasing a Cooperative Group Housing Society Flat, you should check the original Share Certificate issued by the Society that mentions the name of the owner.
5. Entire Chain of Documents
You should ask the seller to show you the entire chain of documents right from the original allotment to the present seller. The transfer of property can either happen either by way of Sale or Gift or Inheritance. In case of sale transfers, the seller should be able to produce all Sale Deeds since original allotment. Similarly, he should be able to present any gift deed, will or nominations etc. You should also check Share certificates right from the original allottee. This will give you a fair idea of the titles and title transfers.
6. Utility Bills & Tax Receipts
You should check that all Utility bills like Electricity, Water, Gas & Telephone bills and Society Maintenance Dues are paid up to date and carry the name of present owner.
Property taxes are due to the government and are a first charge on the property. You should inspect latest property tax receipts. Ensure that they carry the seller’s name and that all taxes are paid since the beginning year of possession. You can also check property tax dues from the Municipal Corporation office. In case of any dues, ask the seller to clear them before you purchase the property.
7. Society Related Documents
At a convenient time, the seller can facilitate your visit to the society where you can inspect society registration documents, property card, occupation certificate and approved layout plans etc. In case, you are taking a home loan, the bank may ask a copy of layout plans or any other documents. You can collect a copy of any such document during your visit to the society.
8. Possession Certificate
In case, you are buying a property developed by a private builder, you should check the possession certificate and collect it at the time of sale deed registration.
9. No Objection Certificate (NoC) from Society
You will also need to get a No Objection Certificate from the Society stating that they don’t have any problems in transferring the flat to your name subject to all payments and agreements between buyer and seller.
10. Sale Deed Registration
Once you have checked all property documents, you can make full payment to the seller. Then you will have to execute the Sale Deed and get it registered at the Registrar’s office upon payment of appropriate stamp duties.
11. Change in Share Certificate
Upon execution of Sale Deed, you will have to submit a copy of Sale Deed along with membership transfer form duly signed by both buyer and seller to the society. The society will then issue new share certificate with your name as the new owner.
There are so many frauds possible at different levels during pre-sale & post-sale. I write this in more of a context from Bangalore !!
The details of fraud and then the amount they cheat is in brackets. The list is so huge and it can go on. I've written based on my 12 years experience in the field. Most of it I've personally come across and avoided, except once and I'm fighting it in court now.
Rules for you :-
Have a good lawyer beside you. Observe carefully for clues from frauds. Never trust on words. Use your contact. Do background check. Fraudsters won't be first timers and they would have left enough clues for you. Frauds in real estate that I've faced or heard from near and dear. This list is small
Collection of booking amount advertising on some very attractive property at a very cheap rate. All they do is advertisement & promise. (People generally loose from Rs.50,000 - 5,00,000.)
Collection of booking amount of same property from multiple people (people loose from Rs.5000 - 1,00,000)
Selling same property to different people. Same plots are sold to multiple people. They have innovative ways of doing this.(Depending on money spent. Also years together spent in courts)
Selling property under litigation. I've faced this so many times. They would be so sweet till they get the money.
Showing one property which looks great but they legally selling another piece. So even your lawyer won't find an issue.
So many times brokers have tried to sell me public ( government ) properties.
Selling plots that are kept for public ameneties.
Selling a plot including some road.
Selling excess land. It's very hard to find as only a survey of large portions of land can bring this out.
Selling government notified property claiming it can be sorted out or government would pull it back.
Re-routing Rajkalve, bandidhare, kaldhare (storm water drain, bull kart road, pathway) for convenience. Later after many years government officials comes to claim it. Right now Bangalore is facing demolition because of this.
Selling lake bed, buffer zone, sensitive zone etc
Selling agricultural land claiming its residential.
Threatening property owners saying they have some sort of claim. They come out with innovative ways of claiming legal heirship. Worst and funniest claim I've heard so far is that the guy claimed himself to be a son in an extra marital affair of a land lord. He sent even a legal notice through his mother. Even this took more than three years time to clear in a court.
Claiming unsettled legal heirships.
Selling properties for which the seller don't have full rights. They mostly give forged documents for verification.
Forging a will. We became suspicious of a will favouring a grandson. Later found that the will was done a day before grand father’s death. That too with thumb impression. Decided not to proceed.
Removing legal heirs from family trees claiming they are died even showing a forged death certificate.
So many issues because of bad family partitions.
Sending legal notices saying some partner of the company had not signed in the agreement or sale deed and extracting money. It is post sales of the plot.
Never finishing a project.
Not delivering bare minimum quality
Deviating big time from promised delivery terms.
Evicting a buyer based on silly reasons before sale deed registration.
Extracting fines based on silly reasons.
Threatening a buyer after collection of booking amount when they demand for agreement.
