Encumbrance Certificate (EC)
Commence a computerized search of the Encumbrance Certificate (EC) starting from 1975 onwards. For the period between 1975 and 1908 or 1858, manually examine the EC records.
Zero-Value Land: If the EC indicates that the land has zero value, it implies that it is barren or uncultivable land. Avoid purchasing zero-value land categorized as outlying or wild.
Beware of power of attorney (POA) double documentation.
Do not purchase land associated with a power of attorney, as it indicates the existence of duplicate documents.
If the land is being sold based on a power of attorney, confirm whether the person who granted the power is alive and conscious. Obtain a copy of the POA agreement and personally meet the person who granted the power at the address mentioned in the document.
Determine if the power of attorney has been revoked. Inquire whether the person who issued the power of attorney has canceled it. Both the agent and the principal (the person who issued the power) can sell the land individually. If the land has been sold by both parties, it constitutes a case of double documentation.
Be cautious of will-related land double documentation.
Determine if ownership can be transferred through a will.
If the land is being sold based on a will, understand the concept of a final/last will. If the sale is conducted through a registered will, it qualifies as a land sale deed.
Check if there are any unregistered wills subsequent to the registered will. Inquire with the relatives of the land seller. If the sale is being conducted based on an unregistered will, it constitutes a case of double documentation.
Be cautious of settlement-related land double documentation.
If the land is being sold through a settlement deed, ensure that the validity of the settlement can be canceled.
Between 1990 and 2015, the Register Office canceled several settlements, resulting in additional property issues related to the land.
Only a civil court can cancel a settlement deed.
A cancellation deed at the deed office does not provide sufficient assurance. If the cancellation is not registered by the Sub Register Office (SRO) in the Encumbrance Certificate (EC), refrain from purchasing the land.
If the purchase is based on a maternal will, carefully examine the link between the purchase deed and the parent deed.
Be cautious of purchase through non-updated belt double documentation.
For lands purchased through the 1987-UDR or 1995-Nattam land scheme, check if the person who bought the land is listed in the revenue records. If the current owner is not updated and the previous owner and their heirs are selling it based on an old deed from 1987, it constitutes a case of double documentation.
If the land is purchased and left without updating the original owner’s details, it can be sold to their heirs, resulting in double documentation.
Consider the layout, form, and shape of the land.
Ascertain if the land is designated as bad land or part of a layout.
If the land has been approved by the Directorate of Town and Country Planning (DTCP) or the Chennai Metropolitan Development Authority (CMDA), verify the authenticity of the approval by cross-referencing the approval number on the respective websites.
If the approval information is not available online, visit the Local Planning Authority (LPA) office of DTCP or CMDA and confirm the validity of the land approval.
Inquire about any previous approved layouts that may have been unlawfully modified and sold.
If you have access to the layout blueprint, take it to the park and school authorities and verify if the layout has been properly implemented.
Verify the land’s classification and zoning.
Check the land’s classification and zoning status with the local planning authorities. Ensure that the land is designated for the purpose you intend to use it for, whether it’s residential, commercial, agricultural, or industrial. Review the master plan or zoning regulations to confirm that the land use is consistent with your plans.
If there are any discrepancies or if the land is not zoned appropriately for your intended use, consult with the local planning authorities to understand if there are any possibilities for rezoning or obtaining necessary permits and approvals.
Conduct a physical inspection of the land.
Visit the site and conduct a thorough physical inspection. Examine the boundaries, access roads, neighboring properties, and any existing structures on the land. Check for any encroachments, unauthorized constructions, or boundary disputes.
If possible, engage a professional surveyor to accurately measure and demarcate the land boundaries. This will help avoid future boundary disputes and ensure that the land area matches the documents and representations made by the seller.
Verify the ownership and title documents.
Obtain a copy of the current owner’s title deed and examine it carefully. Verify that the seller is the rightful owner of the land and has the legal authority to sell it. Check for any encumbrances, liens, mortgages, or pending legal disputes that may affect the title.
Engage the services of a competent lawyer or property expert to conduct a comprehensive title search and due diligence. They will review the chain of ownership, search for any previous transactions, and ensure that there are no legal issues or discrepancies with the title.
Review the financial aspects.
Assess the financial aspects of the land purchase. Consider the asking price, market value, and any negotiation opportunities. Evaluate the potential costs involved in the transaction, including stamp duty, registration fees, legal fees, and any outstanding taxes or dues.
Additionally, review the potential for future appreciation or development of the land. Consider factors such as infrastructure development, upcoming projects, and the overall growth prospects of the area.
Consult with local authorities and experts.
Seek advice and guidance from local authorities, such as the municipal corporation, town planning department, or revenue department. Inquire about any specific regulations, permits, or clearances required for the land purchase and your intended use.
Consult with professionals such as lawyers, real estate agents, surveyors, and architects who have expertise in land transactions and local regulations. Their insights and expertise can help you make informed decisions and navigate any complexities involved in the process.
Consider environmental and geological factors.
Evaluate any potential environmental or geological factors that may impact the land. Check for proximity to environmentally sensitive areas, protected zones, or areas prone to natural disasters such as floods or landslides. Consider conducting an environmental impact assessment or a geological survey, if necessary, to understand any potential risks or limitations.
Inquire about the stolen and sold old approved layout.
If you have the layout blueprint, take it to the park and school and inquire if they have implemented the layout.
Many land promoters show the park and school to obtain approval and then deviate from the approved layout. Be cautious.
Avoid purchasing land approved by the Panchayat. After purchase, you will need to define the land under the framework scheme.
If the land is disputed, consult the Village Administrative Officer (VAO). Personally visit the Field Measurement Book (FMB) to verify your survey number for the Urban Land Ceiling (ULC) period of 1987 and inclusion in the chitta register.
Check if the land has been leased under the Natham Landwari Scheme after the abolition of Inam village. Also, confirm if the land falls within the ULC period and chitta register.
If the VAO does not provide the information, submit an RTI petition. It is mandatory to disclose this information through RTI.
Verify if the property tax is in the seller’s name. If not, request a transfer and proceed with the purchase.
Ensure that the land is registered in the seller’s name.
In case of joint lease land, the division of land among the shareholders must be established. If this is not determined, buying the land can lead to problems. The seller may attempt to sell the land without proper rights. Buying leased land involves a complex process and complications, so request a change in the deed to the seller’s name before making the purchase.
Inspect the land classification:
- Nanchai, Punchai, Nattam, Nattam Purumpokku, pasture, channel, Odai Purumpokka, paddy fighting place, park, sports field, land reserved for a temple, common place for cattle.
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Dama, geological path (government land), geological stream, etc.
Identify the beneficiary of the Patta (land document). Determine if the land was previously zamin land, inam land, or ryotwari land.
Verify if the land falls under major prize land or minor prize land. Minor prize land refers to land granted to Depressed Class (DC) individuals by the British before independence. Confirm if the land is designated for service grants such as Pusari, Devadasi, Poo kattum, which were recognized as fines during the colonial period. Check if the Sostram grant has been abolished and if Haji Inam land is subject to abolition.
Investigate the classification of land given to castes other than DC. Examine the settlement details, among other factors.
These categories were established during the colonial period. Post-independence, land assignments were made.
For assignment land (HSD lease), examine the conditions mentioned in the assignment sheet.
Confirm if the land falls under AD assignment Land (Adi Dravidar), granted to Scheduled Caste (SC) and Scheduled Tribe (ST) categories.
Verify if the land falls under F-belt. This land was granted by the Land Reform Department. Differentiate between F-Patta and B-memo land. B-memo is not a land title deed but a government notice indicating encroachment on government land. The government can ask occupants of B-memo land to vacate at any time.
Check the conditions mentioned in the assignment sheet. Do not purchase land without checking the conditions. Also, confirm if the government has taken back any granted lands.
For land donation in 1956, refer to the manual Encumbrance Certificate (EC) from 1950-1965. Only manual EC will display land grant deeds given by land grantors.
Check if the Bhumi Thana Board at Panagal House in Saidapet, Madras confirms the land falls within the ULC period. The ULC (Urban Land Ceiling) Act was enacted to prevent excessive concentration of urban land in the hands of a few individuals or entities. Verify if the land falls within the ULC period and whether it has been included in the chitta register.
Examine the Encumbrance Certificate (EC) to ensure there are no pending dues, legal disputes, or litigation on the land. The EC will provide information about any mortgages, loans, or legal claims on the property.
If the land is part of a housing society or cooperative society, review the society’s documents, including the registered bylaws, NOC (No Objection Certificate) from the society, and the share certificate of the seller.
Engage the services of a competent lawyer who specializes in property law. They can conduct a thorough due diligence process, review all relevant documents, and provide legal advice to protect your interests.
Visit the local sub-registrar’s Office to verify the authenticity of the seller’s title documents. Cross-check the survey number, boundaries, and measurements mentioned in the documents with the physical land.
Inquire about the availability and connectivity of basic amenities such as water, electricity, drainage, and road access to the land. Ensure that the land is suitable for your intended use, whether it’s residential, commercial, or agricultural.
If the land is agricultural, confirm the nature of the soil, availability of irrigation facilities, and any restrictions on agricultural activities imposed by local authorities.
Consider the future development prospects of the area. Research upcoming infrastructure projects, zoning regulations, and potential changes in land use that could affect the value of the land.
Consult with local residents, neighbouring landowners, and real estate agents to gather information about the reputation of the seller, any past disputes related to the land, or any other relevant factors that could impact your decision.
Obtain a valuation report from a qualified valuer to assess the fair market value of the land. This will help you determine if the asking price is reasonable and negotiate effectively with the seller.
Lastly, ensure that the purchase agreement is drafted by a legal professional and includes all necessary clauses to safeguard your interests, such as representations and warranties, payment terms, dispute resolution mechanisms, and timelines for the completion of the transaction.
Remember, thorough due diligence is crucial before purchasing land to mitigate risks and make an informed decision. It is advisable to consult with professionals and seek expert advice throughout the process.
Taking these immediate actions when a piece of land is presented for sale will help you gather the necessary information, conduct thorough due diligence, and make an informed decision before proceeding with the purchase.
