Preliminary Components while buying Land in Maharashtra

• Original Title Documents
  • In case of purchase, the buyer should verify the entire chain of original title documents such as Conveyance Deed, Certificate of Sale, Gift Deed, Release Deed etc., properly stamped and registered as may be applicable, along with corresponding original payment receipts in respect thereof.
  • As many properties may have been devolved upon the current owners from their ancestors, care should be taken to identify the nature of rights of all family members and confirm that the sale document is executed by all the requisite persons having interest in the property. The buyer should ensure that these documents comply with personal laws in respect of matters related to inheritance or succession. Thus, no other individual rights originating on the property remain unaddressed.
  • In case any of these original documents are lost by the seller, the buyer may insist on a copy of the police complaint lodged and public notice published in newspapers along with and a letter from the Advocate issuing such public notice certifying that no claims were received in pursuance thereof.

• Land revenue records
  • Land revenue records[1] are issued by the government for a specific property recording all the details of the land including the area, the owner and the rights. It is also known as a record of rights.
  • The buyer should verify details on the land revenue records such as the 7/12 extracts known as ‘सातबारा उतारा’ issued for land in rural areas or property card known as ‘मालमत्ता पत्रक’ issued for land in urban areas. These documents should reflect the seller’s name as the owner of the land. The buyer should also check the other rights column ‘इतर हक्क’ for tenancies ‘कुळ’ and/or other third party rights i.e. claims existing on the land.
  • Prior to entering any details on the 7/12 extracts, the activities carried on the land are recorded in the mutation entries known as ‘फेरफार’. Therefore, the mutation entries should be thoroughly checked for any reservations, restrictions on transfer, encumbrances ‘बोजा’. All the mutation entries should be read to understand the nature of transactions taken place in respect of the land.
  • Further, special attention should be afforded to any restrictions, litigations, claims or other legal issues in any of the documents (especially mutation entries) and confirm that the same have been eventually resolved.
  • The buyer should not rely solely on the revenue records for ascertaining the title of the land but should also check other requisite aspects since it is settled law that revenue records do not confer title on the person whose name is appearing in such records.
  • Since many properties have been devolved upon the current owners from their ancestors, care should be taken to identify the nature of rights of all family members and confirm that the sale document is executed by all the requisite persons having interest in the property.  

• Ancillary Permissions for transfer
  • The buyer should check the type of occupancy of land in the revenue records – whether it is class I (freely transferable) or class II (restricted transfer). In case of class II, previous permission from the authorities is required for transfer.
  • Non-Agricultural permission is given specifically for the purpose for which the land may be used such as residential or commercial or industrial etc. Hence, that buyer should confirm that the specific permission required for the purpose of the activity carried out by him is available.
  • In case there is any structure/building constructed on the land, the buyer should obtain a copy of the construction permissions in respect of the same.

• Certificates and Plans
  • The buyer can be reassured about the land being free from any legal or financial liability such as a mortgage or pending loan by taking searches in concerned Sub-Registrar’s office having appropriate jurisdiction.
  • The buyer may obtain a village map[2] & block plan ‘गाव नकाशा’ for verifying the information of location of the land. 
  • The buyer can obtain a “Zone Certificate” which indicates the zones of land such as residential, Industrial Commercial, Agriculture and other details of the land like water bodies, and flood line. As each zone is assigned for a specific purpose, the buyer should verify that the purpose of purchasing such land is permitted in the zone under which the land is classified.

• Utility Bills
  • The buyer should check the property tax bills and their payment receipts in respect of the land have been issued in favour of the Seller to reassure themselves regarding pending dues if any on the land.

• Miscellaneous Documents
  • The buyer should check whether the land is affected by any provisions of Urban Land (Ceiling and Regulation) Act, 1976 (which has now been repealed).
  • In case the land was previously mortgaged, the buyer should check the ‘No Dues No Charge’ certificate issued by the bank after repayment of the loan.
  • In case of any pending or concluded litigations on the land, the buyer should insist on copies of the legal proceedings including the final order if the case has been dismissed.

Though the basics remain identical as above, each transaction being based on different facts requires a tailored inquiry. Thus, the above list remains indicative and not exhaustive. Generally, as land transactions are complex in nature, the buyer should seek legal opinion for an extensive due diligence before entering into such transactions to prevent and mitigate the occurrence of litigation.

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Endnotes:

[1] An e-copy may be available at – https://bhulekh.mahabhumi.gov.in/

[2] An e-copy maybe available at – https://mahabhunakasha.mahabhumi.gov.in/