Introduction to how to buy agricultural land in Andhra Pradesh: As its name suggests, agricultural land generally means land required for farming and agricultural purposes. The “Land” is used in agricultural relativity, about a crop or cultivated land. It is a valuable resource provided by nature to the state. Andhra Pradesh’s economy is mainly agricultural. Agriculture is an important source of income for the state’s economy. India’s two main rivers, the Godavari and the Krishna flow through the state, providing irrigation.
A complete guide to how to buy agricultural land in Andhra Pradesh, documents required, and the cost of agricultural land in Andhra Pradesh
Let’s know about agricultural land
The agricultural sector plays an important role in Andhra Pradesh’s lives in rural areas. Agriculture plays an important role not only in the economy but also in achieving food security for the state and the country. The main challenges are increasing water scarcity, scarcity of natural resources such as land, and per capita availability of land and water resources. In addition, rain-fed agriculture across the state and coastal irrigated agriculture are at high risk from the effects of natural disasters. These days it has been made easy to buy agricultural land in Andhra Pradesh but one has to check all the documents and be aware of all the issues.
Here is a checklist for anyone planning to buy agricultural land in AP. Similar land documents can be found in other states, although with different names or titles. It is important to correct the paperwork when buying such lands. Otherwise, it can lead the buyer into uninvited legal disputes that no one will want. Therefore, we have tried to simplify the whole process by compiling every little piece of information that you may need to simplify the whole thing. Andhra Pradesh consists of 5 different soil types and 6 agro-climatic zones in which different crops can be cultivated throughout the year.
Can NRIs buy agricultural land in Andhra Pradesh?
Even in Andhra Pradesh, anyone is allowed to buy agricultural land, regardless of their occupation, except NRIs. However, there is a limit to the land area. The Family Unit can hold or purchase a maximum of 10 acres in Class A, i.e., irrigated land, and 54 acres in Class K, including dry and non-irrigated lands. All over India, NRIs and foreign nationals cannot buy agricultural land/plantation property/farmhouses.
There are no restrictions on investors in Andhra Pradesh agricultural land. Anyone can buy agricultural land here except NRIs. According to the Andhra Pradesh Land Reforms Act, 1973, the maximum area of land is as follows;
A family unit (individual, spouse, and 3 minor children) can be acquired or purchased maximum extent of land is 10 Acres in Class A lands (irrigated and double-cropped wetland) and Class K lands are 54 acres (dry and non-irrigated lands). Agricultural lands owned by Scheduled Tribes (ST) in the areas of the Agency should not be transferred to individuals other than ST Cooperative Societies and its members (re-members should be Scheduled Tribes).
The process to find an Encumbrance Certificate (EC) online in Andhra Pradesh?
The EC (Encumbrance Certificate) is defined as it is the legal document of assurance that the land is free from legal or financial liability. The EC is a mandatory document required for property transactions and is used as the primary proof of title or ownership. In Andhra Pradesh, an applicant can easily download Encumbrance Certificate (EC) from the IGRS portal by following the steps below.
1. Go to the IGRS web portal of Andhra Pradesh Registration and Stamps
2. Go to the Services section and then tap on ‘Encumbrance Search’.
3. Then, you will be redirected to a new web page.
4. Carefully read the disclaimer and instructions and then click Submit.
5. Again, you will be redirected to a new ‘Search for Incumbrance’ page.
6. Enter the following parameters from the drop-down menu.
7. After that, go to document number or memo number and year of registration
8. House number or name of an apartment located in town/village.
9. The survey number (sometimes expressed by plot number) in the Revenue Village
It is must select the District and Sub-Registrar’s Office under each option.
Some things need to keep in mind when buying agricultural land
Make sure you are not buying disputed land
Other states in our country have different rules for buying agricultural land. In Andhra Pradesh, anyone is eligible to buy land except NRIs. So, make sure you know the principles of this state. Non-compliance with such laws can have the opposite effect.
The land must be a marketable title
Make sure you are not buying a piece of agricultural land for residential purposes. It is prohibited to build a house or a place to live on farmland. If you want to use an agricultural property as a residence, you have to go through the conversion process. Every other state has its guidelines that need to be followed according to the buyer. To obtain a certificate of conversion, a form must be completed and submitted to the relevant authorities. You will need to state the reason for the change and submit the required documents along with the form. Make sure don’t forget to get a NOC letter from the township to avoid any legal trouble in the future. However, make sure that if you are buying agricultural property, use it only for that purpose. The process of change can be frustrating. However, always keep in mind to hire or join a land or property lawyer if you can. This will help you to check the record of the land you are buying and also identify whether the seller is verified and trusted. It only reduces unwanted risks.
No one should buy a small farm at will. Whatever your reasons for buying a small form – whether it’s your retreat, weekend, hobby form, conservation or self-sufficiency block, or investment or working form, you need to consider any of these important things before you consider these important purchasing tips.
Use a reputable agent
Make sure, to use an agent who is familiar with the local area and has a good knowledge of agricultural land. Most agents specialize in residential real estate. However, very few people specialize in rural real estate. When choosing an agent, look for one that provides clear answers to the basic questions of the farm, including council rates, land size and use, soil type, water availability, and other important aspects for small farmers. Information. If the process is taking too long, write down a wish list (necessary, unnecessary, and required) and send it to several other local agents.
Check planning restrictions and legal obligations
Buying farmland involves several legal obligations, including;
- Control of harmful weeds and pests,
- Animal welfare,
- Chemical use,
- Boundary fencing (along public roads) and
- Fire preparation.
The three tiers of government – federal, state, and local – enforce these and other laws. Before buying a small farm, check with the local government authority to make sure the zoning of the property is suitable for its intended use. Appropriate zoning would be general agriculture, rural residential, or rural smallholdings. Also, look for property titles to find out if there is a concession agreement (i.e., the right to use the property for a specific purpose), carbon, conservation or heritage cavities (third party rights to the property), or covenants (written agreement between the seller and buyer restriction on land use) has its place.
Inspect the farm infrastructure
Farm infrastructure mainly includes houses, sheds, fences, yards, water supply like tanks, dams, pipes, and troughs, and power supply (location, single or three-phase). The infrastructure form should match your plans and if it does not exist or fit, you will need to consider the cost of implementing or improving it. Understand local council building requirements (development approvals) and restrictions (e.g., one dwelling per farm). Make sure the infrastructure of the relevant form involved in the sale is marked on the first page of the sales agreement.
Check access to markets and services
Its distance from farmland and markets can greatly increase the cost of farming and the cost of selling goods. If the markets are far away, investigate opportunities to pool and sell similar products with other small farmers in the area.
Not all rural areas generally have easy access to modern life-related services and facilities, such as health care, education, power, water, internet, and phone connection. Check that the necessary utilities are available and if not, check the cost of installing them. Make sure the field is accessible in all seasons (wet and dry) and if access is by dirt road, find out who is responsible for its maintenance.
Understand the land and the water
In case if you miss this: How To Buy Agriculture Land In Karnataka.
The type of field soil will directly affect the extent of the crops that can be grown and whether the land is suitable for its intended purpose. Before buying farmland, you should request soil tests (or previous test results) and use them with an onsite inspection to assess the suitability of the soil. Inspect the field for signs of soil erosion (salinity, erosion, and chemical contamination), as they can be expensive to repair. Though, assess farm water (quality and quantity) for domestic, livestock, fire control, and irrigation purposes. A comprehensive water test before purchase is worth it. If farmland is irrigated, contact the relevant government authority regarding water rights and restrictions.
Consider weeds and pests
Inspect the field for insect and weed infections. If you are unsure about locally procured herbs, consult an agronomist for accurate identification. Identify potential sources of herb and pest infection, including rail lines, neighboring land, waterways, state forests, and access roads. Control of weeds declared on private land is the responsibility of the owner and is a legal requirement of land ownership.
Assess natural resources
Natural resources – including remnant vegetation and wildlife habitats – can be important environmental and agricultural assets. Work affecting native plants will require a permit, which can be expensive and time-consuming to apply for.
Meet with neighbors and assess the effects of land use
It’s important to meet your neighbors in the rural areas, especially if you are an absentee owner. If you are buying a small farm for aesthetic reasons, ask your neighbors about their land use to make sure your ideas are safe. Investigate whether your intended use of land will affect neighboring farms and whether it has the potential to cause conflict.
Farms for sale
You need to know about agricultural land to help you understand the current market for productive land for sale. If you want to purchase or sell agricultural land, a field auction is one of the best methods to find, buy and sell land. Maintaining a positive return on investment (ROI) is essential to leading bidders to auction off their farms. With a positive ROI, farm sales across the Midwest have been strong over the past few years.
Necessary documents required for buying agricultural land in AP
The title deed of the land plot
The title deed of the land plot confirms the name of the seller’s name and also confirms whether the seller has full right to sell the property. The practices should be examined by a lawyer to confirm that the seller has not allowed access to others through this land. A certificate of release must be obtained from the other participants if the agricultural land is owned by more than one person.
Agreement of sale
For buying agricultural land, a written agreement is made about the cost, advance payment, and the actual sale time after all the documents have been verified. Based on the terms established in this document, future agreements are likely to proceed. Before signing a sales contract, it is important to set the terms and understand each clause to fully understand its implications.
Stamp duty on land
It is a government tax and varies from state to state. The stamp duty paid will be mainly considered a legal document and then submitted to the court as evidence.
Registration of the land
Land registration is the process by which a document copy is recorded and the title to the immovable property is transferred to the registrar’s office in the name of the buyer. Based on the Indian Registration Act, 1908, the deed must be registered in the office of the Sub-Registrar within 4 months from the date of execution of the document. The document should provide details such as the original title deed, previous deeds, house tax receipts, and two witnesses for property registration.
Conveyance deed of sale deed of the agricultural land
A conveyance deed of the sale deed is a document that transfers the title of the property from the seller to the buyer. This will help you to find the owner of the property, where the property is located, and details such as site measurements, boundary details, etc.
Tax Receipts and Bills
The buyer should check the latest property tax bills and ask about them at the municipal offices. Water, and electricity are other bills that must be updated in the receipts.
An encumbrance certificate for the last 13 or 30 years can be obtained from the office of the Sub-Registrar, to ensure that there are no legal duties or complaints on the land.
An accredited surveyor can ensure that the plot measurement and its boundaries are accurate and as indicated in the title certificate.
Change the title of the land (in the village office)
For purchasing the property all legal procedures are completed, only if the name of the new owner is included in the village office records. After that, an application can be made to the village office along with a copy of the registered deed.
Agriculture land market value checking in Andhra Pradesh
The applicants can check the market value or base rates for agricultural properties from the official IGRS portal of the Andhra Pradesh Registration and Stamps Department. Follow the steps below to know the market rate;
- Visit the IGRS web portal of the Registration and Stamp Department of Andhra Pradesh.
- Under the Find section, click on Market Value
- A ‘Unit Rate’ segment will open with different options
- Choose ‘Non-Agriculture Rates’ or ‘Agriculture Rates’
- Select the desired district, constituency, or village from the drop-down options.
- Results will appear on the screen based on the input.
Important checklist for buying agricultural land in Andhra Pradesh
How about this: How To Buy Agricultural Land In Telangana.
Find out the details of the land – Check the land extent, survey number, subdivision and land boundaries you intend to buy, and the revenue village in which it is located. It is important to find out if the details of the land shown on the paper and the land on the ground are the same. If you know more details, Village Map, FMB (Field Measurement Book), and RSR (Reserve Settlement Register) will help. Also, it is useful to survey the agricultural land before proceeding with the purchase.
Land classification – Purchasing certain categories of land is high risk and even purchasing certain categories is prohibited or illegal. Check if the land you want to buy falls into any of the prohibited or high-risk categories. Government lands allotted by the government to the landless poor and forest lands are some of the land categories which cannot be purchased, Inam lands, lands belonging to trusts, lands belonging to producer companies and there is a high risk of buying DK Patta lands. Only tribals can buy agricultural land in Scheduled Areas. It can be estimated from Adangal, IB Register, Pattadar Passbook, and Title Deed. Don’t come to any conclusions about the land classification based on the entries listed in Adangal alone.
Check online in Bhudhaar or Meebhoomi –The website https://meebhoomi.ap.gov.in helps to find a map of Adangal, 1B, FMB, and village map in the Andhra Pradesh Revenue Department. This allows us to check all the information related to the seller. The Andhra Pradesh government launched Bhudhar for transparency and security – this is a unique 11-digit number that will be issued for agricultural land. Land surveying and mapping should be done in a foolproof manner so that irregularities in land transactions can be detected by satellite images along with latitude and longitude measurements.
Check if the seller is the real owner or not – A person who owns the land can only sell it to others. The purchaser gets the same right as the seller and if the seller has no right or unsecured right then the buyer also gets no right or unsecured right. Check all Title Deed, Pattadar Passbook, and 1B Register records in Mebhoomi to see if the seller is the real owner. The Encumbrance Certificate also shows the name of the owner (s) on the land and previous transactions. And you can also check Bhudhar, whether the land has allotted any Bhudhar number or not.
Existing Claims and Disputes – Check if there are any existing claims or disputes on the ground. Carefully inquiry to the Mandal Revenue Office can reveal any existing claims.
Sale Deed and Registration – Get a detailed sale deed with complete details about the agricultural land and details about the owners. Most agricultural lands are native. That is why ancestral rights also need to be checked. The cell deed must be registered. Unregistered cell transactions are invalid.
Mutation – Within 45 days from the registration date in Form 6A for mutation in the land record, apply to the Mandal Revenue Officer and obtain Pattadar Passbook and update the record in the online web portal. However, the application can be made even after the expiry of 45 days.
Survey and Subdivision – Get the land surveyed and sub-divided
Entry in Adangal/Pahani – Enter your details in both Adangal / Pahani online and in the physical register.
Obtain copies of land records – Get certified copies of Adangal / Pahani, 1B Register, and FMB. Visit the online web portal frequently and check the Adangal Register every year to make sure your name is on the record. State governments are taking proactive steps to more easily assess the status of land as well as protect land data records.
Agricultural land value certificate in Andhra Pradesh –
The State Government periodically fixes the unit rate of land in Andhra Pradesh. Property registration charges and stamp duty are calculated based on unit rates for lands administered by the Government of Andhra Pradesh. The value of the government-administered property will be reviewed from time to time according to market value and reasonable price. This certificate is used to prove the fair value of a property in a particular area in the district.
Importance of Land Value Certificate – The importance of obtaining the Andhra Pradesh Agricultural Land Price Certificate is as follows;
- The Land Value Certificate is used to obtain the details of the property which is entered in the property registration.
- The document is to provide the current land valuation according to history.
- The land value certificate provides the year of value and time of assessment.
- A land value certificate is required to obtain a loan from a bank.
Landowners are recommended to check and obtain a land value certificate every 3 to 5 years.
The unit rate of agricultural land
The fair value of agricultural land or unit rate is calculated and reported by the Government of Andhra Pradesh. The rate is estimated based on the importance of the plot, the type of road, road access, and the nature of the land.
Documents Required for a certificate of the value of agricultural land in Andhra Pradesh – The following documents are required to obtain a certificate of the value of agricultural land in Andhra Pradesh.
- Application Form
- Registration Document
- Pattadar Passbook
- Title Deed
- Encumbrance Certificate issued by Sub-Registrar on the date mentioned on it
- Processing Time – The processing time for to certificate is Issued within 30 days from the date of application.
Cost of agricultural land in Andhra Pradesh
Approximately, the cost of agricultural land in Andhra Pradesh is 20 lakhs to 1 crore and it will vary depending on several factors. Below mentioned factors can be divided into a few categories;
- Accessibility and land use
- Physical attributes
- Price in surrounding and nearby area
- Market Value and property price
As an important natural resource, the land becomes a target of competition in the agricultural land market. The process of price formation is influenced by several factors. The size of the land market finds the value of the land. Even if the income on an asset is good, it will be difficult for a farm to sell at a premium price if there are few buyers in an area.
Many other natural factors can affect agricultural land prices. These include the major salinity limits of the soil, the status of the client and the water passage of the land, the status of the water table and the extent of the shortage of water table, the availability of surface and sub-surface irrigation, the sources of irrigation, Fertility revolves around status. Caste and religion around the area, facilities related to input and output delivery system, banking network and credit facilities around the area, soil and its health status, pests, and insect infestation, germination status, the influence of public and private sector, and infrastructure facilities, etc.
Land purchase scheme in Andhra Pradesh
Eligibility – Aims to assist small and backward farmers and landless agricultural laborers who are our current borrowers in purchasing land to ensure land acquisition and development of barren lands.
- Loan amount – Cost of land
- Irrigation facilities and provision of land development (shall not exceed 50% of the value of the land).
- Purchase of farm equipment.
- Registration charges and stamp duty.
- The loan amount will be 85% of the cost of the land, as estimated by the bank, subject to a maximum of Rs 5 lakhs
- Mortgage of land to be purchased
- Maximum 9 to 10 years beginning after the expiry of the gestation period, with half-yearly installments.
- For developed land, the maximum gestation period will be 1 year and 2 years.
Andhra Pradesh Property Registration
Registration of property in India is mandatory under the provisions of the Indian Registration Act, 1908. The transfer of immovable property is to be registered for the acquisition of property rights on the execution date of the deed. In the state of Andhra Pradesh, the Department of Registration and Stamps is responsible for property registration.
Purpose of Property Registration
The advantages of property registration are as follows;
- The main purpose is to serve for proper recording of documents which provide more authenticity.
- Preventing fraud, protecting evidence, and ensuring the transfer of title to the owner.
- From the registration of the property, the document will maintain an up-to-date public record.
Documents required for property registration
To register a property in Andhra Pradesh, the following documents are required along with the application;
- Passport-size photo of seller and buyer
- Photo Identification (Voter Identity Card, passport, AND Aadhaar card)
- Copy of certified original old sale deed
- Copy Latest Property Register Card Copy (from City Survey Department)
- Copy of Municipal Tax Bill
If you live in Andhra Pradesh (AP) state, this article may shed some light on the procedure of buying agricultural land.
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