Tuesday, June 27, 2006

What should one look @ while buying a land in chennai?

Offlate people have started thinking about investing their money in lands. I too think that to be a wise decision only! As most of us know buying a land in chennai (for that matter any where in the world) isn't an easy affair.

I was just wondering what all one needs to look at before deciding to purchase a land. I thought I would put down what ever I know about this subject here.

[Guys pls free to correct me if I my understanding is wrong somewhere. That way, it would help me understand as well as others who might read this in future].

Here we go ...

1. One should not buy farm lands if they want to build a residential house sometime later there. Because to my knowledge its illegal to build residential houses on lands meant for irrigation.

2. Encumberance Certificate -- This is what is shortly refered as "EC". One needs to get an EC from local sub registrar office (i guess we need pay a small amount for this). From this we / our lawyers :) can find out whether the guy who is planning sell the land to us is the "complete" owner of that land. If at all he is not the single owner of the property then he should have proper "Power of Attorney" granted by other co-owners.

3. One should verify the patta. This document would have details about property (length, width etc.,) and the survey number of the property.

4. Before buying a land check whether it has CMDA approval? (I am not sure what sort of approval one would get if they buy it outside chennai limits? May be Panchayat!?!)
Fyi, CMDA - Chennai Metropolitan Development Authority

5. Always better to involve a good / genuine lawyer in these process. Lawyers normally verify the EC, patta and cross check whether the copy of documents he have matches with that of the original document OR has it been tampered by somebody :). If the lawyer is satisfied we can be rest assured that we have choosen a good land only!

6. Now-a-days i think there are banks which lends loan for purchasing lands too. For ex: State Bank Of India, HDFC and Sundaram Finance. If possible its better to purchase via a bank loan; that way, bankers would be doing the background check and based on that only approve it.

7. You might want to do a soil test OR get an expert advice from some good civil engineer. Who know some 5 or 10 yrs back that land could have been a small pond :) So you might want to check before buying on whether this is suitable for constructing a house or not.

ppl i am done with my points. Now I am looking forward for your comments to know whether I have missed out something.

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36 comments:

Yoga said...

I think you can buy the farming land but you have to then get CMDA approval build a house. This is possible but might be a painful process.

Prem said...

Some more points..
1. The land value will be very less in the patta but we will pay more than that. So we will get load only what we have mentioned in the patta.
2. We have to check the actual path and it measurement for the land what we are buying.
3. Then regarding loan in SBI we have to give only the Sales Deed.But in nother banks we have to give the patta itself.

vasanth said...
This comment has been removed by a blog administrator.
Antony said...

Apply for 25 years EC. (20 years computerized and 5 years non-computerized)

There is something called Sittadal. I think u will have to go the the VO office to verify the validity of your land.

Also if u r planning to go for a Loan be aware that the bank will provide 85% of the loan amount only on the GUIDE LINE VALUE (Govt rate).

vasanth said...

must have a look at that area in rainy season...
Some areas may appear neat when there is no rain... but during rainy season we may not be able to see the land

Vadivel said...

Welcome to my blogspace antony :)

pandurang said...

Interest rates are going up the roof. When you buy something with a loan, make sure you have some commitment from the bank that the loan will not hike up later.

I never believed in investing anyway. Long-term is scarier!

Manivannan said...

Hi Vadivel,

I was quite searching for a long time for such kind of this information. Now i have got it, thanks a lot for the info. Awaiting some interesting topics like "How to choose an area where we can buy a land/house" also "Should we choose to buy flat or independent house". Hope I am pulling your legs :-).

rgds,
mani

Jegan Selvaraj said...

Now a days some developers are developing a whole area like 1 or 2 acres and they are selling that land by spliting it into 1 ground or two grounds per people.
# Pepole buying these kind of lands first check for "path lands had been donated(Gift Deed) to government" so that government will lay road or ditches or current supply etc...
# In that Developed area developer should allot land for park . They might sell park land to u :) . we should check this also

Jegan Selvaraj said...

be careful on land developers

Vadivel said...

Welcome to my blogspace jegan and Mani :)

Thks for ur comments!

Anonymous said...

Hi Guys, I need to know the meaning of patta? If we have patta does it mean that the land title is clear? How is this different from the approval by CMDA/Panchayat? Is the approval required only for constructing or buying the plot it self.

Anonymous said...

Patta mean... land registration document with the registrar seal. along with seller and buyer signature and address, land areas, survey number, location etc. You can check the history of the land in registrar office and veryfy if that land is under any dispute. Becasue in India it is possible any one can sell other people's land with the help of registrar office employees (only corrupted people).

Try to enquire that land history with the near by resident and land owner. If you are residing outside India ask your relatives and friends to study that.

Thanks,

Padmanaban

Kavi said...

Guys...g8 job !! a very useful website....3 cheers to the moderator !

Guys...plz tell me the procedure to obtain a patta for a land. Also let me know the contacts of people who can fix it..i mean can get a patta for a land !

Kutti mani said...

Hell Sir(s)...
I need some help. I bought a small home from a builder in coimabtore. The registration is completed last month. The builder is handing over the property next week. Now he wants a service fee for 80000....he says that this fee is newly introduced by our govt.
Where can I get more information. Is this true? Thanks..

Anonymous said...

Thanks for your tips Vadivel.. It's really useful.

Velu

Anonymous said...

I have purchased a land in Chennai suburbs (Chengalpattu disrict). I have not received the patta from seller as yet (Its been 6 months since I purchased the property). The seller says, patta will take several months to be issued from local Tasildar. Is this true? Is the transaction valid without a patta. I have gotten the other documents including sale deed & EC.
How do I deal with this?

Anonymous said...


Patta Transfer Process
=======================

I have purchased a land in Chennai suburbs (Chengalpattu disrict). I have not received the patta in my name from seller as yet (Its been 6 months since I purchased the property & applied for patta transfer). The seller says, patta will take several months to be issued from local Tasildar. Is this true? Is the transaction valid without a patta ttransfer. I have gotten the other documents including sale deed & EC.
How do I deal with this?

Anonymous said...

Patta-Transfer Process.
No problem. Get the parent patta (or copy of parent patta) of the land in question.
Unless you follow up with the concerned Talu office/Survey office, it is very difficult to get the Patta/recording in the FMB book about the transfer of ownership.

AR said...

Hi All,

Just to add up some points of my understanding in this very painful process of buying a land.Hope it helps somebody,somewhere..

1.Once the land which we plan to buy is identified,we need to ask for the copy of parent document (very important)and the copies
of patta and EC(Encumberance certificate)

There are 2 documents called CHITTA and ADANGAL.

From my understanding,Chitta and adangal gives the details of the land like extent of land, category(nanjai or punjai etc..).Chitta, adangal & patta details can be got from respective village officer quoting the survey number...

If chitta & adangal are there,then patta is issued for the land.This patta shows the land ownership details..

EC - My understanding is that that EC should be taken for 33 yrs - any encumberance before 33 yrs will be legally decided in favour of the current owner is what i understand..Just check it up in legal...

Other points needing check are
- patta number mentioned in the sale deed and on the patta copy SHOULD be the same...

We do not get copies of Chitta and adangal always...patta is very important
If patta is not clear,PLS DIG IT..It is very important that we hold a relevant patta..
With all these documents,take a legal opinion with a genuine lawyer..DONT MIND THE COST,ITS WORTH IT.

Also from the parent document, we should check all buying and selling that has happened on that land till the current owner.THERE SHOULD BE NO GAP PERIODS.CHECK FOR CONTINUITY.

If then ur legal is thru,Then u can go ahead buying...Most of the things mentioned here will be checked by legal,BUT I feel its better to have some knowledge on these matters rather that being totally blank..

Hope it helps..Bye

Anonymous said...

A really good post. How do these rules apply for farm land? Can any citizen of India buy/sell farm land in TN?

Also, if i am not mistaken you can build a house - but a farm house with certain restrictions - sloping roof, G+1 structure etc.

shivan

Anonymous said...

As a purchaser do we have to get the original copy of the parent document (i.e original sale deed, patta of the seller) after registration.

Srini

Vadivel said...

Hi, the informations are very useful. Thanks. I have one question..... If one wants to construct a building or to extend some portion of the present residential building, what is the legal procedure to be followed? Is there any area (Sqft.) or the work cost criterias involved in determining the approval? if yes, what is that? For example: one wants to construct a new small bed room to the attachment of already existing residentail house house.

Suresh said...

Hi ,
This is a great initiative ,as nowdays it is mandatory for everyone who is interested in buying a land to know all the details. From my experience i like to share one thing ,similar to farm lands , some lands are allocted for commercial purpose like to build a shop etc where we can't build a house . So kindly check the documents once . In Tamil these kind of land are termed as 'Kadai Manai'.

moha said...

I would like to know if an agricultural land could be sold as farm land plots. Is there any kind of permission or approval required.

bsnl said...

hi vadivel
how to calculate vacant land tax and easy method for bilding plan approval

Anonymous said...

Hi,
We are planning to buy land in Hosur meant for residential purposes. We plan to get legal advise. Could anyone suggest a good lawyer in Bangalore as we live in B'lore. I have noted the points to be checked before buying but it would be good if it was thoroughly vetted by a good lawyer who specialises in land purchases. Pls post a reply asap. Thanx

Anonymous said...

Could you please explain me the necessity of getting approval for the land .

Karthik D said...

Good post..

off-late there has been many talk of Vacant Land Tax. When i went for Plan approval, i was asked to pay certain amount (considerable) as Vacant Land Tax. Hence if you are buying Land ensure the seller has no dues related to this.

My 2 Cents!!!

Karthik

Anonymous said...

The VAO said that comupterised patta is now being issued. Where should I apply for this? I have an old patta.

Jvalar said...

Hi All,

Any one know the way to find out the agent who is selling land is proper person(owner) to sell the particular land, is the land register one?.i am going to buy the land from one seller, but i don't know exactly how to verify the land details properly, i am fear on fake sellers.

Ravi said...

Thanks for sharing the wealth of knowledge..

Here is my penny..
This is the site to validate the patta and the owner information.. I hope this will be much helpful us.

http://taluk.tn.nic.in/eservicesnew/index.html

Ravi said...

Fellows, Do you know any good legal service firm/lawyer to validate the accuracy of the land documents?

Anonymous said...

Hi,
Can u please tell the procedure for trasfer of patta in chennai.

Anonymous said...

Nice post!! Thanks!!

Bala said...

Hi i am bala we brought a land near tambaram in 2008 still now we cannot get patta.the reason told in taluka office in ur site layout are three different type in brokers hand our computer layout is differ from yours so we reject your form. We also dont know our plots place in that whole land.we have all our documents including ec our name in ec also.how to protect our land from the cheater