Agriculture Land Registration Process In India

Introduction to agriculture land registration process in India: Agricultural land is used for farming or farming purposes and it has many benefits. Before buying a land, verify that the land has a clear and salable title to avoid getting into legal disputes. Methods of buying agricultural land will change from state to state.

Property registration is a complex process that involves a lot of documents. Property buyers need to know that for the transfer of ownership, the buyer has to pay some charges for stamp duty and also for registration. Pay stamp duty before registration land or performing this deed for which stamp duty has to be paid. Therefore, usually, you pay stamp duty either before the day it is complied with or the day you comply with it. Land registration is the process by which a copy of a document is recorded and the title of immovable property is transferred to the name of the buyer in the office of the Registrar. The deed must be registered in the office of the Sub-Registrar within 4 months from the date of execution of the document, according to the Indian Registration Act, 1908. Provide some important details such as the original title deed, past deeds, house tax receipts, and two witnesses for property registration in the document.

A step-by-step guide to agriculture land registration process in India, online registration, and documents required for registering agricultual property in India

Agriculture Land Registration Process In India
Agriculture Land (pic source: pixabay)

Agricultural Land Categories

Confined Feeding Operations – Ecosystems that have been modified or adapted by humans to function as large, specialized livestock production enterprises with large animal populations in relatively small areas. These include dairy operations with limited food and large poultry farms. This does not include shipping coral and other temporary holding facilities.

Cropland and Pasture – It includes cultivated land, summer fallow and fallow land, land on which crop failure occurs, soil-improving grasses and fruit crops, only pastures with crops includes pasture land used for cultivation, and more or less permanent land used for it.

Orchards and Vineyards – Fruits have been modified or created to produce crops. This includes floriculture and greenhouses, tree nurseries that provide seedlings for plantation forestry.

Other Agricultural Land – Those ecosystems that are modified or created by man to produce food and fiber, but they do not fall into other categories of agricultural land (crops, orchards, vineyards, nurseries, and ornamental horticulture areas; confined food practices). Then, these include breeding and training facilities on horse farms, small farm ponds, and similar uses.

Steps for agricultural land registration in India

In case if you miss this: Who Can Buy Agricultural Land In The USA.

Farm Land Registration in India
Farm land pic source: pixabay)

Agriculture land registration in India involves the following steps;

Buying a property is a tedious process. This includes extensive market research and a lot of time and money. However, it is not the search for a property that is the most complicated part of buying a property, but the registration of the property. The process of registering property is complicated and involves various stages.

Verification of property title – Verifying the title deed of the property will give you an idea of ​​the property ownership status and any dues such as property tax, water, and electricity bill, etc., which may be pending.

Estimate of property value – The value of agricultural land use is defined as the net income that can be expected from the crops grown on the land such as maize, alfalfa, and wheat, which the cost of horticultural land is defined as the net income one could expect to receive from tree fruits (e.g., apples, peaches, and pears). This aims to explore the underlying assumptions behind the use-value program and the cities participating in the program. Explain the process used to calculate the value of use for agricultural and horticultural lands.

Farmland can be valued in the following ways: (i) Fertilizing, manuring, and liming (ii) reclamation and drainage (iii) fallowing (iv) proper cultivation methods such as crop rotation (v) erosion control (vi) irrigation (vii) rotational grazing.

Preparation of stamp papers – The registration process involves making a stamp duty and payment of registration fee for the title document and the said title document is legally recorded with the Sub-Registrar. It is important to verify the property title. Non-judicial stamp paper or traditional stamp paper is used to carry out the said documents in states across India for sale deeds, transfer of immovable property, contracts, deeds, and wills, etc.

Getting the sale deed ready – Obtain the sale deed prepared by lawyers for registration. It is the most valuable legal documents in buying and selling agricultural land. The sale is drafted by the legal draftsman on the non-judicial stamp paper of the value required by the relevant State Stamp Act.

Stamp duty payment – The registration fee for a document is about 1% of the property value, subject to a maximum of INR 30,000. However, the stamp duty varies from case to case, which is about 3-10% of the value of the property.

Submit the local municipal department details and pay the relevant stamp duty. Stamp duty varies from place to place. Then, talk to your property lawyer to find out the exact price of the stamp in the area. The registration process takes place in the office of the Sub-Registrar. This is the actual process by which agricultural property land is transferred to the buyer.

Consult the sub-registrar for registration – The seller and the buyer, or to persons having the power of attorney with them, with two witnesses, to the office of the Sub-Registrar of Assurances, within which such property falls within the jurisdiction.

Submission of documents – The main purpose of registration is to record the execution of the document. Only when you register the document does it become legal and the ownership, if any, is transferred to the rightful owner. Simply put, a notice will be filed only if the agreement between the lender and the loan applicant has not been registered.

Who can’t buy agricultural land in India?

You cannot buy agricultural land, farmhouses, or planting properties anywhere in India if you are a Person of Indian Origin (PIO) or Non-Resident Indian (NRI).

Sale deed preparation for agriculture land registration

Requirements and Precautions;

A sale deed is one of the most valuable legal documents in buying and selling property. The sale is drafted by the legal draftsman on the non-judicial stamp paper of the value required by the relevant State Stamp Act. Today, in many states, including Andhra Pradesh and Telangana, stamp papers are available for only Rs. 100 / -. The parties will use 5-6 non-judicial stamp papers and the balance will be paid through challan system (AP) and stamping and other procedures provided by the state government (in other states). The draft man should include some of the following clauses in preparation for the sale deed construction;

Name of the deed – It is up to the parties to decide which process to prepare, such as the deed of sale or deed of mortgage or deed of lease, etc., and based on which the transfer of ownership of immovable property will take place. After this sale deadline, the parties may use the Dead Sale (or) Sale Dead.

Parties to sale deed – sale deed includes the names, ages, and relevant addresses of the parties to the transaction, and both parties. The seller and the buyer should be able to agree so that it does not affect the accuracy of the sale. The sale deed must be properly signed and implemented by both parties. An accurate sales process should begin with a clear explanation from the parties.

Description of the property sold – A valid sale deed includes a complete description of the property. This should include an identification number, total area of ​​the plot, construction details as well as its location along with the surrounding areas. A property schedule must be included in the sale deed that will specify the location of the property.

Sale Agreement – In a sales agreement, both parties may mutually agree on the terms and conditions of the agreement so as not to affect the rights of the parties. The sale deed may take place before the sale agreement.

Sale consideration clause – It includes the clause stating the amount of sale as agreed between the seller and the buyer. The amount of sale should be clearly stated in the sale agreement as agreed in the sale agreement so that the parties to the transaction have no liability.

Payment Method – It is always up to the buyer to decide how to pay for the sale whether by cash/check/demand draft and the seller has to agree to it.

Passage of title – The sale deed contain this clause when the original title of the land is given to the buyer. The seller must be given a time limit to transfer the title. Once the title to the immovable property is transferred, all rights will be transferred to the buyer.

Delivery of possession – After the completion of the registration process, the possession of the immovable property will be transferred to the buyer through the vendor. One clause in the sale deed must state when the actual delivery of the possession will take place.

Execution – All parties to the deed will execute it by putting their full signature. Each page must be signed by the seller and the buyer. Any erasure, alteration, addition, or deletion will be confirmed by the full signature of the parties. Two witnesses are required to carry out the sale deadline. Witnesses will have to provide their full details and addresses.

Registration as per section – According to 17 of the “Registration Act, 1908”, if the value of the property concerned exceeds Rs. 100/-. To register, both parties must appear before the Sub-Registrar’s Office of the jurisdiction in person or through their authorized agent within four months from the date of implementation with the original documents. To register, the buyer has to pay stamp duty to the Sub-Registrar. A certified copy of the registration document will be obtained for future reference.

Original Documents – All original documents of the property sold will be handed over to the buyer by the seller, once registered under the Property Registration Act. All legal rights including ownership, possession, title, interest will be in favor of the purchaser.

Searching for a title before registering agricultural land in India

A title search is an important exercise that the buyer starts before acquiring a property in India. It will ensure the buyer that the title is clear, marketable, and free from encumbrances and responsibilities. This will protect the buyer’s interest and reduce the risks involved in the property transaction.

Title Search Process – Find the title of the property to buy from Title Deeds and Revenue Records. To ascertain the property origin, one has to look at the title documents of the last 40-60 years. To detect any negative ownership or conflicting claims against the buyer, the documents of the last 12 years should be thoroughly examined. Obtained illegally and its illegal title is against the government, then the documents of the last 30 years will be searched and examined. After verifying the authenticity of the title, it is necessary to find out how the property was transferred from the previous owners. The present one means inheritance, gift, sale, mortgage, etc. It also includes scrutiny of all necessary documents to ensure that they have paid the applicable legal clearances and have the latest receipts and incumbency certificates for tax payments. Check property identification and physical measurement according to the title deed.

Documents required for agriculture property registration in India

You may also check this: How To Buy Agricultural Land In Canada.

Documents required for registration
Documents required for registration (pic source: pixabay)

You will need the following documents for property registration;

When you visit the sub-registrar office, you will need to submit the following documents for property registration;

  • Firstly, the sale is dead on a non-judicial stamp worth the deal value.
  • Two passport size photographs of the buyer, seller, and two witnesses.
  • Voter ID card, passport, Aadhar card, PAN card, or driving license of the buyer, seller, and two witnesses are the important identity proofs.
  • Copy of latest property register card.
  • Copy of Municipal Tax Bill.
  • Proof of stamp duty, registration tax, and payment to the seller.
  •  Copy of NOC (No Objection Certificate) is required.

Properly registered documents can be submitted to the office of the Sub-Registrar of Insurance after 2-7 days. A certificate with all required information is provided, and an original copy of the deed provided at the time of registration is returned.

Once the registration is complete, you need to apply for a mutation. A change changes title ownership. An application for conversion is filed with an affidavit, compensation bond, and a notarized copy of the registered sale deed. You will also need to submit biometric verification to the Sub-Registrar’s Office. Take 2 witnesses with you to the Sub-Registrar’s office. These witnesses will be required to bring with them original and photocopies of their identity and address proof.

Ideally, register your property land within 4 months of completing the sale. It is a good idea to seek legal help to draft a sale deed and to go through the registration process. You must register your property within 4 months from the date of execution of the transaction. If you fail to register within four months, you can apply to the Sub-Registrar for a waiver of the delay. The registrar may agree to register your property. However, you may have to pay a penalty of up to ten times the actual registration fee. Documents that must be registered must be submitted within four months from the date of their enrollment with the required fee. In the event of expiration, you may apply to the Sub-Registrar for a waiver of delay within the next four months and the Registrar may agree to register such documents upon payment of a fine of up to ten times the original registration fee.

Conditions to be taken before registering the property

Encumbrances (EC) – An encumbrance is a thing that makes it difficult to transfer property registration details from one owner to another, for example, outstanding mortgages, liens on real estate, non-paid property tax, etc. The buyer must first assess the value of the property before purchasing it. The property has been cleared of any kind of burden. All this can be checked in the office of the Registrar who has jurisdiction over the property.

Chain of documents – Any buyer should check the chain of documents before buying a property. A chain of documents that tell when and how the property was transferred from one owner to another.

Payment of dues – Any property should be free from any debts like property tax, electricity bill, water bill, etc. It is the buyer’s responsibility to check the property before registering it.

Preparation of deed – A draft deed (sale deed, lease deed, gift deed, etc.) that needs to be executed, with details and terms and conditions of all parties, before registering the property must be entered.

Stamp duty calculation – Stamp duty is a fee charged by the government and varies from state to state. Stamp duty is calculated based on the market value of the property involved. Upon completion of the above steps, the deed is executed in the office of the Sub-Registrar, whose jurisdiction comes under the signature or thumb impressions of the parties to the deed.

Advantages of agriculture land registration

Application for mutation of title deed – Mutation means a change of ownership from one person to another. Due to the mutation, the new owner receives a property record in his name in the Land Revenue Department. It also enables the government to collect property tax from the rightful owner. The City Survey and Land Records Department is the governing authority at the request of the mutation. After reviewing the application for mutation, the City Survey and Land Records Department decides the value of the property tax and finally issues a letter of mutation in favor of the buyer.

A registered title immediately provides the latest official record of who owns the land and individuals do not need to do any research on the history of the title of the land. A registered title is a state guarantee. You may be able to get compensation if you have lost interest in land property information due to a mistake or omission in the register by the registrar. Disputes over land ownership or rights can be resolved more easily. Once registered through the plan, each title is given a government land plan and can be used to prevent any encroachment by encroaching on the boundaries.

Upon registering your agricultural land, provided with a modern scale plan by the Land Registry. This ensures that your land and its boundaries are easy to identify. Projects associated with older title deeds often refer to historical features that no longer exist, and many different plans associated with multiple title deeds can make land identification difficult. Clear and coordinated planning can reduce the likelihood of future border disputes.

When unregistered land is sold or transferred, land registration becomes mandatory. Since 1990, unregistered land must be registered within 2 months of completion of sale or transfer. If the land is already registered, the transportation process is quick and easy. This can lead to a reduction in legal fees when selling. Also, the Land Registry offers a 25% discount on their first registration fee if the application for registration is made voluntarily, instead of when land registration becomes mandatory. The Land Registry guarantees the title to the land and notifies the landowner if a third party attempts to register an interest in the land. It protects you from registering land in your neighbor’s name and provides you with conclusive and undisputed proof of ownership.

Registration protects against situations where title deeds may be lost or damaged. If title deeds are missing, the landowner is required to submit proof of ownership. Once the land is registered, the Land Registry keeps all the required copyright documents online, and they can be easily downloaded on the Internet if required. When registering land, we can resolve any issues regarding rights of way or encroachments by neighbors. We can formally document agreements such as rights granted to third parties on your land, rights of way, and field swaps/land exchanges. These informal and non-documentary agreements were often made when the older generation of farming families managed the land. It is therefore imperative that these agreements be properly and legally documented before the knowledge of these agreements is lost.

Land registration provides state-backed guarantees to secure property title. This means that if you lose the title to your property due to an error or omission in the register, or the register needs to be corrected, you will generally be compensated. Land registration helps protect your land from negative possession of your land and property (“squatter rights”). It also protects the title deed from being lost, damaged, or destroyed.

Registration makes it easier to buy and sell a property because the information needed to transfer all information about the title of the property will be kept centrally with the Land Registry. This means that it is easy to determine who owns the property and what benefits and burdens are attached to the land. If the land is not registered, the conveyancer will have to obtain and examine the deeds from the client or mortgagee, which would cost time and money.

The online agriculture land registration process in India

How about this: How To Buy Agricultural Land In Kerala.

Online agriculture land registration in India
Online agriculture land registration ( pic credit: pixabay)

Technology has made property and land registration easier. Now, you can e-register your property and some states have an official online portal for online registration. Also, you can calculate stamp duty through these online portals. Net banking, credit/debit cards, and other online payment methods have made e-registration of property possible.

Online Property Registration – It is permitted in some states, you must keep the following in mind before registering your property online;

  • Make sure to check if your state has an online portal for the e-registration of land.

Only a few parts of the property registration can be done online such as:

  • You can know the stamp duty rates.
  • Pay registration and stamp duty fees online.
  • You can get a payment receipt online.
  • Once you receive your receipt, you will need to go to the Sub-Registrar’s office to complete the registration of your property.
  • If the value of the property is more than INR 50 lakhs, you will have to pay 1% TDS on the value of the property. You can pay TDS online.
  • You will need to provide some information for online property registration, such as property type, property status, property description, proof of property, and your details.

Note and Disclaimer

Some states for example Telanga implemented an online portal called “DHARANI” for agricultural/farm land registrations at local MRO offices, not at sub-register offices. Before you make any land transaction, find out with the local revenue department for an accurate registration process.

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