Introduction to how to buy agricultural land in Rajasthan: Land can be a very lucrative investment. Unlike buildings, plots do not lose value, and when you invest in a plot of land in the right place, its value increases rapidly. India has ample agricultural land and our economy is mainly based on agriculture. Therefore, although buying or selling agricultural land can be profitable, the process can be a bit difficult as the rules and regulations attached to it are unique.
Agricultural land is defined as the land used for farming or farming purposes. Buying a piece of land is the first step in building a home for many people. Therefore, it is important to verify that there is a clear and salable title to the land to avoid getting into legal disputes. When buying agricultural land in India, one has to verify that there is no dispute and the registration process should be hassle-free. Ways of buying agricultural land change from state to state.
A guide to how to buy agricultural land In Rajasthan, process, restrictions, documents required, and schemes
Who can’t buy agricultural land in India?
Across India, NRIs and PIOs cannot buy agricultural land/plantation property/farmhouse. However, they can inherit agricultural land. If you are a Person of Indian Origin (PIO) or Non-Resident Indian (NRI) cannot buy agricultural land, farmhouses, or planting properties anywhere in India and you will be able to inherit them.
The benefits of investing in agricultural land in Rajasthan
If it is in an area where the government has planned some infrastructure projects soon, then an agricultural land plot can green the long-term profits. Compensation for rural land is higher than urban land in terms of government acquisition. For areas where the number of cities is increasing, state governments are also planning Land Polling Policy.
Most of us dream of owning a piece of farmland, where we can pursue our hobby of farming as well as use it as a weekend getaway. There are several benefits to investing in agricultural land in India. A piece of agricultural land guarantees some profit in the long run if it is in a particular place some kind of infrastructure project which will be completed soon.
For all kinds of development related to land, the asset you have purchased will never depreciate over time. However, this is not entirely true of apartments, flats, etc. Though the quality and overall structure of the building deteriorates over time and the owner has to spend a lot of money to maintain it. Investing in good quality agricultural land in a good location not only prevents you from incurring all the maintenance costs but gives you the option to use this specific piece of agricultural land for many purposes.
Restrictions for buying agricultural land in Rajasthan
There are no restrictions in these states. There were certain limits on the purchase of agricultural land from ‘Khatedars’ in Rajasthan, under section 17 of the threshold of implementation of the Agricultural Holdings Act. However, one has to apply for conversion within one year of acquisition and then start the proposed non-agricultural use within 3 years from the date of conversion in Rajasthan.
The largest units of land measurement in Rajasthan used are Acres, Bighas, and Hectares, and one small unit of land measurement in square feet.
Bigha in Rajasthan is used by farmers as a measure of land area for sale and agricultural land purchase in rural areas. An acre is a standard unit of measurement for the sale and purchase of agricultural land in Rajasthan.
Mistakes to avoid while buying agricultural land
It is important to make sure that one considers the importance of the land title. Before buying it, check the title of the farm. This is beneficial in two ways. They are it helps to avoid legal complications and help to get the land faster.
Buyers should be aware of agricultural land laws, especially if they belong to another state. Though agricultural lands fall under the jurisdiction of the state and the rules can change in different states. Before buying agricultural land, it is important to review existing laws. Buyers also make sure to physically verify the property and then look at the details. As the buyer knows the soil quality and other properties are important for buying agricultural land.
Little things keep in mind while buying the agricultural land in Rajasthan
- It is important to keep small things in mind when buying agricultural land.
- Make sure you are not buying disputed land and other states have different laws for buying agricultural land.
- Land should be a marketable title.
- If you want to use an agricultural property as a residence, go through the conversion process. According to the buyer, every other state has guidelines that need to be followed.
- A form must be completed and submitted to the relevant authorities, to obtain a Certificate of Conversion. You need to state the reason for the change and submit the required documents along with the form.
- For buying agricultural land, don’t forget to get a NOC letter from the township. If you are buying agricultural property, use it for that purpose only.
- However, always keep in mind that if you can, hire or join a land or property lawyer. This will help you to check the records of the land you are buying and also to identify whether the seller is certified and trusted. It only minimizes the unwanted risks.
Precautions to buying agricultural land in Rajasthan
Check sellers’ past events – We verify title deeds and all attached documents before buying a property. But we fail to confirm the vendor’s previous antecedents. It is better to confirm the role and antecedents of the vendors in advance. If vendors are habitual offenders and are involved in property crimes or other offenses, it is best to abandon the idea of buying property. Regardless of whether the title is perfect or not. If the shopkeeper’s background is good; And if his character and reputation are undoubted, then the transaction will be very smooth. Even in the future, if there is a property title or any other issue, you are dealing with a respected person in society. And you don’t have to spend your precious money and time on unnecessary litigation. You do not face any embarrassment in the form of physical or verbal abuse. Matters can be resolved through a gentleman’s agreement without the involvement of external forces.
Check the title of the property – In this segment, the title of the property forms the basis of any agreement. Under the Indian Contract Act, no seller can give a buyer a better title than he already has. Therefore, the title of the seller should be clear and free from any kind of encumbrance. Verify seller title before purchasing a property. Though the office records of the Sub-Registrar can be searched for documents that can affect the property and they can be registered. Though, the agricultural land can be demanded from the seller of Adangal / Pahani / Khata or/and Pattadar passbook and title deed. The Assessment register ledger entry known as Khata in some parts of the country is a supporting document of the title. This is the present owner’s entry in the municipal / panchayat record relating to the property of the house. By applying for a mutation, the absence of an assessment register entry in the name of the current owner can be corrected at any time. This is important because it is required for loans, title opinions, and renaming of electricity meters, etc. The Assessment Register Ledger entry is converted after the sale deed is executed. Though, if applied and a mutation is requested.
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Sales by the power of attorney holder – If the sale documents are being processed by the owner through the person holding the power of attorney, then the said power of attorney should be thoroughly examined. The person must not only have the power to sell the property but also the power of attorney must be properly exercised. A contract holder who also has the power of attorney to sell the land and/or building is usually a developer. Alternatively, a person may have paid full compensation to the owner and retained the property for some time to sell it at a later date for a profit. The sale effect will be from the owner’s power of attorney holder. Such power of attorney must be properly sealed and registered (if it is attached to the sale agreement/development agreement / given for consideration). It should also not be revoked.
Check the original documents – Read all the documents before signing them and always inspect the seller’s original documents. The vendor says that the original documents are missing/stolen/lost, then it is better to know the facts about the lost documents. Find out if the vendor has lodged a complaint with the concerned police station and obtained a copy of the FIR regarding the loss of documents; and/or what other steps he took as a sensible person to track them down. Then, the original documents are likely to be kept in banks / financial institutions / private lenders so title deeds can be collected and mortgaged/charged on the property. Therefore, it is better to get complete information about the original documents which are missing. And it is always best to issue public notices based on certified copies of title deeds, which were lost, rather than the original documents regarding the purchase of the property.
Encumbrance Certificate – Before purchasing land or house it is necessary to verify that there are no legal obligations on the land. Carefully check the encumbrance certificate (EC) issued by the Sub-Registrar’s Office where the deed is registered / Mee Seva Centers, stating that there are no legal obligations and complaints on the said land.
Payment of stamp duty – Always verify the title documents to check the payment of stamp duty. If the ownership of the property has changed more than once, review all the documents for payment of stamp duty by the predecessor. Many states have amended the stamp law to allow for the formation of a charge on property in the event of a reduction in stamp duty in any document relating to the property. Therefore, the present owner of the property is liable to pay deficit stamp duty and fines, if any, on the previously registered documents.
List of the documents checked before buying agricultural land in Rajasthan
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The title deed of the plot – It shows the title of the property seller and also checks whether the seller has full right to sell the land. To check that the seller is not allowed access to anyone else through this property, the original documents submitted and previous actions should be checked by a lawyer. When more than one person owns the property, it is necessary to have a certificate issued by the respondents before the documents can be registered.
Agreement for sale – The contract of sale is signed by a lawyer, the seller, and the buyer, after verification of all these documents, drafts and signs a written contract stating the price, advance payment and time or period of a sale, etc.
Stamp duty on land – It is a government tax that changes from state to state. Payment of stamp duty is a legal instrument and can be accepted in court as evidence.
Registration of the land – Land registration is recorded in the registrar’s office in a document signed by both parties, stating the transfer of property to the buyer within 4 months from the execution date of the document. House tax receipts, an original title deed, and previous actions are required at the time of registration in the presence of two witnesses.
Conveyance deed/Sale deed of the land – A land deed/sale deed is a document that transfers the name from the seller to the buyer. In this document, you will find property ownership, property location, and information such as area measurements, boundary information, and more.
Tax Receipts and Bills – Buyers should check the latest property tax bills and collect them at the municipal offices. The buyer must also ensure that the notices or requests for the property are not pending. Water, electricity, or any other bill, must be up to date.
Changing the title of the land – After all legal procedures have been completed, the name of the new owner of the property is added to the records of the Village Office. An application with a copy of the registered deed can be submitted to the village office.
Encumbrance Certificate – This document can be obtained from the office of the Sub-Registrar and is the correct evidence showing that there is no legal obligation or complaint of the land.
Land Measurement – An accredited surveyor can ensure that the measurement of land and its boundaries is accurate and as indicated in the title certificate. To avoid any errors, get it done with a digital survey.
Rajasthan Land Mutation – It is the process of transferring ownership of agricultural land from one person to another person. The transfer of title occurs when the property is transferred from one owner to a new owner. The change of land may change the name of the property in the records of the Revenue Department. Mutation documents must be submitted when selling land.
Agricultural land purchase scheme in Rajasthan
Purpose – To help small and marginal farmers and landless agricultural laborers who are our current creditors to purchase land to consolidate land ownership and develop barren lands and fallow lands.
Features:
- Loan Amount – Price of land
- Provision of irrigation facilities and development of land (shall not exceed 50% of the value of land).
- Purchase of agricultural implements.
- Registration charges and stamp duty.
- The loan amount will be 85 % of the cost of the agricultural land, subject to the maximum of Rs 5 lakhs security
- Mortgage of land to be purchased
- For the developed land, the gestation period will be a maximum of about 1 year and 2 years for the land to be developed.
Process of buying agricultural land in Rajasthan
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Land Measurement – A surveyor will measure the total area of agricultural land and mark the boundaries. It is important to know if you are paying for the right plot area. The surveyor will check the measured size along with the size specified in the title certificate.
A lot of documents are included when you want to buy agricultural land. These documents need to be checked for authenticity and legality. Therefore, it makes sense to seek the help of a professional property lawyer who can do this for you. Here are some documents you should get as part of the purchase process.
Title Deed and Release Certificate – It provides exact information about who is the rightful owner of the land and states whether the current seller is legally entitled to sell the land. If the land belongs to more than one person (usually in the case of large tracts of land), the seller must also provide a certificate of release from the owners of the other portion.
Property Tax Receipts and Other Bills – Property tax is required to be paid annually for the land, and you should ensure that the seller has paid all the arrears. Additional water, electricity, and sewerage services need to be billed.
Sale deed and Sales Agreement – A sale deed is a document that helps to finalize an agreement. It contains all the correct information about the property, including owner details, exact size, and location. A sales contract is a document that states the total cost of the sale, the advance payment, the names of the buyer and seller, and other details and their signatures. The sales contract is important and needs to be fully prepared.
Pay stamp duty and get registered – Once the final sale cost has been decided, you will need to submit the details to the local municipal department and pay the relevant stamp duty. Stamp duty varies from place to place. Talk to your property lawyer to find out the exact price of the stamp in the area. The registration process should take place in the office of the Sub-Registrar. This is the actual process by which agricultural property is transferred to the buyer.
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Significance of land mutation in Rajasthan
Land mutation is an important process in all legal transactions involving property or land. As mentioned above, by changing the land, the new owner gets a revenue record in his name. After the conversion, the details of the mutation will be further updated in the Mutation Register (P-21) in the Rajasthan Revenue Record (Jamabandi) administered by the State Government. A mutation letter will be issued to the applicant. In Rajasthan, the Patwari or Gram Panchayat is processing a request for a change of land.
A mutation document is required to settle property tax liability obligations. The mutation document is proof of ownership of a particular land. For the sale of land, the owner has to submit the mutation document to the buyer for verification. If the land is in joint ownership, a mutation document or certificate with all the names of the co-owners will be provided.
The new owner receives a revenue record in his name by converting the property. Details of converted lands are updated in Rajasthan Revenue Records (Jamabandi) and Mutation Register (P-21) which is with the State Government. Requests for conversion of land are processed through Patwari or Gram Panchayat in Rajasthan. The significance of the mutation document is stated below;
- When selling a property, the seller must provide the buyer with a mutation document for verification.
- It serves as proof of land ownership.
- It helps to identify property tax liabilities.
Disadvantages of buying agricultural land
There are many disadvantages when you buy agricultural land. The main disadvantages are;
Not everyone can buy agricultural land – as per the prevailing law, you have to join the farming profession to own agricultural land anywhere in the country of India. Although many states in India have this rule, some states have abolished it. You can also legally inherit a piece of agricultural land or as a gift.
Change is difficult – you are not allowed to convert a piece of fertile agricultural land into residential land. If you are considering converting it from agricultural land to residential land then the piece of land must be dry land.
Act of Land Ceiling – Some Indian states restrict land ownership. Therefore, you need to check the maximum amount of land that can be purchased in this particular state.
NRIs are not allowed to buy – NRIs are not legally allowed to buy agricultural land anywhere in India.
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