RANDOM

BUYING LAND OUTSIDE THE CITIES

KARNATAKA, INDIA



If you plan to buy land in acreage within the state of Karnataka, you have to be aware of a few things. I decided to document the lessons learnt during our quest to buy a piece of land of a couple acres outside of the cities. Beware that all brokers lie. So the better informed you are, the lesser the chance of you being taken for a ride. 

And of course, ALWAYS get a good lawyer to check the documents before you purchase. This data is to help prepare you for the land searching process and not the legal process. 


TECHNICAL INFORMATION


  • Use DISHAANK app to pull up the survey number of any land and do your research. This is a great government app that allows you to obtain the details of any Karnataka property by using GPS. 
  • Use the government website : http://landrecords.karnataka.gov.in/service63 to get all the information about any court cases on the land. Click on the SERVICES tab to get everything from RTC, Mutation Records, Revenue details.



PRACTICAL INFORMATION

  • Once you like a property, get a written agreement along with some token money offered to the seller. Also make sure the agreement states that you will only buy if all legal documents are in order, otherwise, the token should be given back (but in reality, be ready to let that money go). This ONLY holds the seller accountable to a certain degree even if it is not a legal agreement.
  • Get a written agreement, then get the land surveyed and finally go to legal for document verification after the survey results. This way, if survey comes messed up, you don't have to pay the lawyer unnecessarily. Happens more often than not! 
  • Banks can make mistakes, so do not fall for the false sense of security of a loan they might have given on a land you want to purchase. In one case during our adventures, the land documents were in order but we realized that a part of the land was actually occupied by someone else after doing a survey. And our seller was ignorantly cultivating in someone else's land. This is apparently more common than it seems.
  • The survey of most of the lands in India still depend on the stones laid down as markers during the British era! So it does not hurt to get a couple surveys done before purchasing.
  • If there is a loan on the land, then first get a 'No Objection' letter from the bank. Then get an official Sale Agreement registered and finally pay off the bank loan of the seller. This protects you from sellers backing out after you have repaid their bank loan. This also tells you before hand if all the members of the seller's party will sign the actual registration as well.
  • Always insist upon the seller to put up a fence before buying the land. This assures you that the neighbor's are indeed in agreement that the land belongs to the seller. 
  • Always ask how much of the property is "karab" land. This is land deemed by the government for road broadening in the future, etc.
  • Remember if you are not staying on the land while you build or cultivate, people will steal from your land, including construction material. In some cases, they will also occupy your land. You are the outsider and they will test you.
  • With regards to the rights of the minor children (in the Seller's party), remember that the parent who inherited the land should be the one who signs away the minor's rights. e.g. if the mother inherited the land then the father of the minor cannot sign on the minor child's behalf. Only the mother can sign away the rights of the minor. Otherwise, upon reaching his/her 18th year, the minor still has rights over the land despite a parent having sold it to you. 




GENERAL INFORMATION

  • Apart from the usual land documents such as Sale Deed, Encumbrance Certificate etc., non-residential lands have a document called the RTC (Record of Rights, Tenancy and Crops) that states all the details of the land including the lands Survey number.
  • If you want to explore the route of converting a land to non-agricultural land, then just buy the latest edition of the book "Karnataka Land Reforms Act 1986" and do the research yourself. Section 108 and 109 would be of most interest to you as it deals with this process. Also, conversion of land has its share of tax implications, so make sure to ask your lawyer and CA about that. Remember that whatever the time frame a broker promises you is probably half of what it will really take to convert. Same applies to the money involved in the process. 
  • The way to identify a plantation land is to see a document called the RTC, which the seller would possess. The seller's RTC should mention one of the 4 plantation crops under the section stating "Plants Grown". Most plantations are in the Western Ghats section encompassing areas in and around Chikmagalur, Coorg etc.
  • Be aware that buying lands from Govt protected people like highly oppressed minority groups have their share of requirements for the property to become sell-able.
  • If the land is a part of other larger properties, there will be a single survey number for the total area. In this case, make sure there is a 'pod' number for this particular property. e.g. if the survey number is 12, then your pod number can be 12/7.
  • If the Govt has granted a land for military service or as compensation for relocating people, the owner cannot legally sell the land for the first 15 years.
  • Never believe the seller when he promises to do anything after the purchase of his land. Some people have been duped into believing that the seller would maintain their estates for a nominal fee, and have often been dragged into court to settle the disagreement. It is best to buy and maintain a civil relationship with the seller.
  • Shockingly, most sellers are not serious. They just want to test out their property prices. So after making the first call, let the seller get back to you. Do not follow through as it is not worth it to listen to their lies.
  • Quiet a few brokers do not work out and they spoil the deal. They promise a higher number to the seller and a lower number to the buyer and ruin all future conversations as everyone comes in with totally different expectations. Most small time brokers also promise you a land that does not exist, and then begin hunting while keeping you on hook.
  • The broker does not get more than 1% from the buyer. He/she gets 2% from seller. Counter check everything he/she says to you.
  • Also, if there are working borewell/s in the land, you're saving yourself a monetary risk about 1 lakh per borewell. Same goes with regards to a road within the land. The average cost of getting a JCB to make a road is about Rs. 850 per hour. So do the math and take a wise judgement call. 
  • Get ready for a long journey of broken promises. The mental exhaustion of having worked hard and not having made any tangible headway will get your spirit down. Give yourself a break every now and then before getting back in the game. And despite all the failed attempts, at the end, you will be wiser than when you started off! 
HAPPY LAND HUNT! :)







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