Precautions Buyers should take while Purchasing a Property

Contents:

1. Introduction.

2. Primary Documents and Secondary Documents.

3. Documents to check while purchasing an Agricultural Land.

4. Documents to check while purchasing a Non-Agricultural Land (Plot).

5. Documents to check while purchasing a House or Apartment.

6. Provisions of Scheduled Caste/Scheduled Tribes Land.

Introduction

A person spends a large portion of their life saving money in buying properties. For majority of the people owning a home is more than just a dream. However, in reality the process buying a home can be more challenging, especially for the first-time buyers.

Every state has different rules and regulations and buying a property in different states differs from each other. For example, in order to buy a property in Karnataka, the approval from BIAPPA/BDA is an essential factor whereas looking into any other state such a document will not be present and the process will be different.

Hence it is important for a buyer to understand and make a check list of documents before buying any property so that there occur no legal complications in the future. In this article, we will be discussing the essential documents which a buyer has to check while buying a plot, house or apartment, especially in Karnataka.

Primary Documents and Secondary Documents

There are mainly two types of documents that need to be investigated while purchasing a property namely, primary documents and secondary documents.

Primary documents are those documents which show the ownership history of a property, and includes documents like - sale deed, sale agreement, partition deed, gift deed, will, release deed, General power of Attorney, Mortgage deed, Discharge deed, Joint development agreement, SC/ST Grant.

Secondary documents help with the corroboration of information mentioned in primary documents and help in determining if the property is in accordance with the compliance and regulations. Secondary documents include documents like Conversion order, Encumbrance Certificate, Record of Rights, Tenancy and Crop Information, Mutation register, Patta receipt, Khata certificate, Tax paid receipt, Karnataka revision settlement Akarband, Village map and so on.

A buyer can obtain all these documents either from the seller, the registrar office and documents related to revenue from the Tahsildar office. However, in this digital world, all these documents can also be obtained online from the various websites of the Government.

Documents to check while purchasing an Agricultural Land

The documents that a buyer has to investigate while purchasing an agricultural land is as follows:

1. Sale Deeds: The sale deed defines the transfer of ownership to the new buyer. The buyer has to pay the stamp duty and registration charges according to the provisions, while registering the sale deed.

The sale deed of an agricultural land includes details such as the survey number, acre, guntas, revenue assessment and boundaries of the land sold.

2. Mother Deed/Previous Title Deeds: This document shows the ownership history of the property, where the buyer can check if the seller is the only owner of the property or any other parties are involved.The mother deed of a property can be obtained physically from the Sub-Registrar office or can get an online copy through the online citizen portal of the Governement called Kaveri Online Services.

3. Encumbrance Certificate: It is a certificate of the records of all registered transactions done over a property. The EC for an agricultural land should be checked from 1st April 1924 to up to date. The Encumbrance Certificate allows the buyer to determine whether the property is free of any legal or monetary obligations, such as unpaid debts or mortgages.

One can obtain an encumbrance certificate either physically by visiting the Sub-Registrar office and filling the Form No. 22 or a digital EC through the Kaveri online services portal.

4. Record of Rights, Tenancy and Crop(RTC): RTC is a significant land document which gives information regarding the land owner and details such as type of the soil, type of land, crops grown on land, area of the land, source of irrigation and water rate, claims and liabilities of the owner, nature of possession and tenancy.

RTC is locally known as Pahani. One can obtain a Pahani either physically under Form 16 or online through the BHOOMI portal.

5. Mutation: Mutation refers to the process of transfer of title from the existing owner to a new owner. It is the next process after the Sale deed is registered.Mutation is done when you buy a property or inherit, receives through gift or will or receives through GPA.

Mutation of property in the owner’s name acts as a proof of possession of the property. The document is also useful to seek power and water connections. One can obtain a mutation of the land by visiting the Municipal office.

6. Patta Book: Every holder of agricultural land (including a tenant if he is primarily liable to pay land revenue therefore), shall be supplied by the prescribed officer with a patta book containing a copy of the record of rights pertaining to such land.The patta book shall also contain information regarding the payment of land revenue.

7. Tippani: A Tippani or a Survey is basically as document which provides the short description of a particular survey number. It contains the measurements of the land along with a sketch of the property. It is issued by the survey department.

8. Akar Band:The Akar Band is a document which helps determine the survey number of a property and the particular party to whom the number was allotted to at the first place. It also contains details pertaining to land revenue assessment details. A copy of Akar Band can be obtained from the revenue department by paying a fee of Rs. 500.

9. PTCL Certificate: Prevention of Transfer of Certain Lands Act (PTCL) endorsement is a document to ascertain that the property which is being purchased is not on land granted to person/persons belonging to the SC/ST communities. PTCL endorsement document can either be issued by the Tahsildar or District Collector can issue this document.

10. Index of Lands: The index of lands is a rough copy prepared by the village accountant prior to the preparation of the record of rights. This document can be obtained from the Revenue Department.

11. 7 and 7A Certificates: It is an endorsement issued by the Tahsildar stating that no tenancy claims have been filed in Form No.7 or 7A in respect of the property in question pending before the Land Tribunal constituted for this purpose.

12. Latest Tax Paid Receipt

13. Caste Certificate of Owners

14. Aadhar Cards of Owners.

15. No Objection Certificate: While purchasing a land it is mandatory to obtain No-objection certificate from Gram Panchayath, Bangalore Development Authority, Karnataka Housing Board, Karnataka Industrial Area Development Board and the Town Planning Committee. This allows the government to keep a check on the growth of illegal colonies.

16. Village Map: It helps the prospective buyers to ascertain the exact boundaries and ensure they get what they pay for.

17. Comprehensive Development Plan (CDP): The CDP allows you to know the actual value or resources available on the land which can be developed in the future in accordance with the municipal regulations.

Documents to check while purchasing a Non-Agricultural Land.

The following are the documents to be reviewed by the buyer when buying a plot in Karnataka.

1. Sale Deed

2. Mother Deeds

3. NOC from Bank: Before finalizing the purchase of a plot in Karnataka, it is essential to obtain No Objection Certificate from the financing institution, in case you are availing a house loan. The NOC is a consent letter stating that the bank doesn’t have any objection to the property being sold to a third party.

4. Title Deed (Verification of Ownership): It is the legal document that proves the legal ownership of the land or property. Before making a purchase, it is essential to ensure that the Title Deed is in the name of the seller and that there are no disputes or discrepancies.

5. Encumbrance Certificate

6. Khata Certificate: When it comes to buying a plot or property in Karnataka, one of the most important documents to check is the Khata Certificate/ Extract. This property identification document is issued by the Bruhat Bengaluru Mahanagara Palike (BBMP) and contains crucial information such as the name of the property owner, size and location of the property, and property tax details.

There are two types of Khata, A Khata and B Khata.

A Khata: This document denotes the proper tax payment by the owner to the BBMP. A Khata means that the property complies with all government regulations and property-related construction regulations in Bangalore. The possession of the A-Khata document enables property owners to file for approval of the building plan, trade approvals, building licenses, and bank loans for the property.

B Khata: This document signifies that the owner’s property in Bangalore is illegal or is in violation of government regulations. The property which is enlisted under B Khata will be denied loans, denied extension and construction permits. The sale of such property is not possible as it is termed as illegal or semi-legal property. Also, obtaining the electricity and water supply to the property is very difficult for a B Khata property. On paying betterment fees and other penalties, B Khata property can be converted into A Khata.

7. Property Tax Receipts: It serves as a proof of tax payment and ensures there are no pending dues on the property.

8. Building Approval Plan: The approval plan will contain the blueprint of the building, including the layout and the specifications. It is essential to verify that the building plan is approved as per the guidelines by the competent urban development department. A quick check on this document will help the buyer ensure that there is no violation of any building laws or regulations.

9. Conversion Order: If the property is converted from an agricultural land to a non- agricultural land, then such a document is essential.

Documents to check while buying a Home or Apartment:

The essential documents to be verified while purchasing a flat or home in Karnataka is as follows:

1. The Sale Deed

2. The Mother Deed

3. Land Use Certificate: This document, also known as a CLU (Change of Land Use), must be studied before purchasing a property. Residential houses cannot be constructed on commercial or agricultural land, etc., and the CLU will give you all the relevant information. To ensure a risk-free land transaction, demand that the developer/builder display this certificate or a copy of the CLU.

4. The Sale and Purchase Agreement: The Sale and Purchase Agreement contains certain terms and conditions between the buyer and seller which is an important document to be cross verified.

5. The Building Approval Plan: Before starting construction, the builder must get the requisite sanctions under the terms of the Building Bylaws, Master Plan, and Local Body Acts. This authorization consists of two components: A) the Building Plan and B) the Layout Approval.

6. Encumbrance Certificate

7. The Possession Letter: The Possession letter is a document created by the builder that specifies the date on which the buyers will take possession of theproperty. After receipt of the Completion Certificate, this document will get generated in the builder's name.

8. Completion Certificate: A Completion Certificate (or Occupancy Certificate) is a document to check that confirms that the building was inspected upon completion and that it complies with all municipal corporation or local development authority requirements. This document must be checked carefully, as this paperwork is required to obtain services such as water, power, and drainage.

9. The Khata Certificate

10. The Allotment Letter: This document is important when buying an under-construction property as all the information regarding payment of the flat and any additional fees to be paid will be contained in this.

11. No Objection Certificate from various civic bodies such as water, fire, power.

12. Approval from BIAPPA/BDA: In order for a property to be in compliance with the regulations, it is necessary that the approvals have been obtained from Bangalore Development Authority (BDA), Bruhat Bengaluru Mahanagara Palike (BBMP), Bangalore Metropolitan Region Development Authority (BMRDA) and Bangalore International Airport Area Planning Authority (BIAPPA). The jurisdictional Commissioner or an officer authorized by such Commissioner may approve the building's authorization.

Provisions of SC/ST Land in Karnataka

The purchase of lands belonging to Scheduled Case/Scheduled Tribes directly from the grantees or third parties would be subjected to violation of Prohibition of Transfer of Certain Land Act wherein such a transfer will be illegal and will be returned to the original grantee or his legal heirs.

However, when such a land is converted to a non-agricultural land, it loses the label as granted land and will not be restricted under the PTCL Act.

Unless done legitimately, it is unlawful to take over any land owned, managed, or assigned to any SC/ST member, as well as to force an SC/ST member to leave their house.