Buying A Plot: Understanding The Process And Legality Involved

There is a considerable gap between simply wanting to buy a plot and actually undertaking the elaborate process of buying it. Several steps are involved in the process and many of them come with legal implications. Pay close attention to the steps you need to take to ensure that your plot has a marketable and legally cleared title. Here’s a brief overview of the process and the checks involved.

Know Your Deed

First, check the current owner’s deed, as it documents the ownership information and history of the plot. Unless an agent is involved, the plot is invariably in the possession of a seller. Ask for the previous deeds that the seller might possess from their earlier deals and get them checked by a property lawyer to ensure single ownership. If a second party is mentioned, ask the seller for a release certificate from them. The deed also helps ascertain if you will be buying directly from the seller, the builder, or a development authority.

Tax Receipts

Next, you will have to visit the municipality office to examine the property tax details and check if the seller has made timely payments. Ask especially for a copy of the latest tax payment. Talk to officers from various departments and inquire whether there were any unserved notices or outstanding requisitions pertaining to the plot or the seller. And don’t forget to ask the seller to settle the pending water and electricity bills, if any.

Encumbrance And Land Pledging

Legal clearances are of prime importance in making land deals. An encumbrance certificate helps you stay clear of the regular troubles. You can procure this certificate from the sub-registrar’s office after a check on the legal dues is made. Find out if the seller had ever pledged the plot for any mortgage deal, and if so, get a release statement from the bankers.

Power Of Attorney

Power of Attorney is the authority vested in the person dealing with you directly, and that needn’t necessarily be the principal seller. Whenever an agent is involved, the Power of Attorney authorizes the agent to act on the seller’s behalf, and sets deed clauses. Check if the Power of Attorney is general or specific, as the former is usually preferred.

Stamp Paper Agreement And Title Deed

This document specifies the details of the transactions, such as the actual land cost, the agreed advance payment, the deal timeline, and what needs to be done in case of defaulting. This is best drafted by a lawyer, as it is a legal agreement.

The Much-Awaited Registration

For the purpose of registration, you need to arrange all your documents, namely Original Deed, new Title Deed, tax receipts, and encumbrance certificate. Once the registration is complete, the transfer of ownership stands confirmed. Ensure that the registration is completed within the time frame mentioned in the Stamp Paper Agreement.

Now that you have a basic understanding of the process and the legal implications involved in the act of buying a plot, it’s time to turn that dream of buying a plot into reality!