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Is it ok to buy a land that has only patta?
Posted on: 10/Sep/2015 9:51:51 AM
In this case, whether the resident has been living in the place for decades or moved in suddenly, note that all pattas (authoritative title deeds) have been issued by the government in the year 1984 after thorough verification. This is known as UDR `Patta`.
In case of persons, who have been residing in the place for long periods, `pattas` will be available.
However, it the residents are residing in unclaimed place (`purampokku` land in Tamil) have been given pattas, they may not have the deed or bond paper of the land. They may have the `patta` only. Still, it is OK to buy it even if patta only is available. However, verify thoroughly whether the patta has been obtained with provisos or conditions.
If the patta has been bought under provisos or conditions, it is better to avoid buying it! This is because; the sales cannot be registered at the registration office under this condition.
However, it the patta has been procured without any provisos or conditions, then check the `Chiita` (the label), adangal (the limits) and the measurements of the land thoroughly and then go to the registration office to register in a fresh deed. There is no risk or harm involved in this process.
Is it OK to buy the land if only the `deed` (paper) is available?
If only the `deed` alone is available, there is room for thought. As explained earlier, `pattas` or titles have been given to all lands. Even if you are residing in the place, you can become the rightful owner of the place only if proper title or `patta` is given under your name!
Hence, the owner who has bought the land can register only after proper title or `patta` is obtained.As per the Tamil Nadu Government Act, registration of land cannot be done without having `patta`!
It a situation arises that the patta is not available under the name of the present owner, and it is available under the name of the previous owner, then there is no problem. By presenting and using the deed where patta is under the name of the previous owner, the sale deed can be processed.
How to check the Sale Deed?
1. Check the encumbrance certificate and confirm whether the name is registered under the name of the seller.
2. If the land happens to be a family property or a joint property, you have to think many times before making a decision whether to buy! You need to read the deed paper very carefully to confirm that the other related family members agree to this transaction.
3. If the buyer is buying the land from a company which had divided the area into plots and selling, they will tend to retain the power while selling the property. This aspect has to be checked thoroughly.
4. This will apply to all those who are buying a flat from apartment buildings. Check the encumbrance certificate and confirm whether the land is under the name of the seller. Also check whether all the dues and taxes such as property tax, water tax, etc have been paid without any dues.
How the price of the sale of land is decided?
When the land is being bought the price is decided as per the prevailing market rates and registered. Hence, when a house is bought along with land, the registrar/assessor will decide the value for the house. Based on this price, 7% stamp paper duty and 1% registration charges may be collected.
PAN Card is essential!
PAN Card is very essential when buying land worth over Rs. 5 Lakhs. There is a government rule that the registrar/assessor should keep the Income Tax Department/authorities informed about the details of the buyer.
