How to buy agricultural land in Haryana: Agriculture plays an important role in the development of the economy and the improvement of agriculture is essential for the balanced development of the economy. It can be said that agriculture has played an important role in the development of Haryana. This is one of the best agricultural states in India.
Agricultural land is generally a land devoted to agriculture, in which other forms of life are used in an organized and controlled manner, especially for raising livestock and producing crops – to produce food for human beings. It is usually synonymous with both farmland or cropland as well as pasture or rangeland. With increasing purchasing power, investors in India are now looking for innovative ideas to maximize their investment. One such important way is to invest in agricultural land. There is a segment of investors who take advantage of the growing market for organic fruits and vegetables to supplement their income.
Agricultural lands also provide open spaces and vital habitats for wildlife, while the proximity of agriculture to natural areas challenges farmers to use management techniques that reduce the negative effects of farming on sensitive areas. Agriculture is an important part of the economy, especially with the growing number of businesses and residents who choose local food products. Agricultural land protection provides essential environmental benefits and enables long-term food security. Haryana can be divided into two homogeneous regions based on its agro-climatic conditions: Eastern Semiarid Zone and Western Arid Zone.
A guide to how to buy agricultural land in Haryana, documents required, cost, schemes, and restrictions of buying agriculture land in the state of Haryana
How much land is used for agriculture in Haryana?: In Haryana, the cultivable area is 3.809 million hectares or 86.2% of the total geographical area and the net sown area is about 3.566 million hectares or 93.6% of cultivable land. The total crops area is approximately 6.504 million hectares with a cropping intensity of 182.39%. The two major forces driving change in land use in Haryana are its population size and growth rate. Their relationship to these forces and migration, land availability, and urbanization is examined in this section.
The Revenue Department is using Information Technology [IT] to update the Haryana Land Records. This is mainly designed to help people access Haryana government land records like Registration, Mutation, and Jamabandi. By using the owner’s name, Khewat number, and Khasra numbers, some people can view the approved details of Mutations and Jamabandi. The site also provides information on property registration and the necessary documents required for it. There is also a knowledge base available to educate people about income terms.
The Council of Ministers in Haryana approved a draft ordinance amending the Haryana Ceiling on Land Holding Act, 1972, exempting land put to or proposed to be put to agricultural use by its provisions of the ceiling law.
Haryana plays a major role in meeting the needs of other states of the country and is self-sufficient in food grains. The world-famous Basmati Rice is produced in abundance here. The major cereals produced in the state include wheat, rice, maize, and millet. Haryana’s crop production can be widely distributed in Rabi and Kharif. The major Kharif crops in the state include Sugarcane, Groundnut, Maize, and Paddy. The small crops of Kharif are Chillies, Millets, Millets, Pulses, and Vegetables.
Factors affecting the value of agricultural land in Haryana
Location – Location is an important factor determining the value of the land. The kind of development that takes place in the area affects the price of land. Proximity to main roads, transport linkages, incoming highways, population centers, or any important landmark makes the plot more appreciated.
Topography – Topography, soil quality, climate, presence of groundwater, etc., have a significant effect on the value of agricultural land. For example, land with weak soils or rocky terrain will not be able to support the structure and will therefore be given less priority. Fertile agricultural land will fetch more than one plot with no significant features.
Demand for land – In simple terms, anything that is tradeable and available in abundance has a lower price than what is available in smaller quantities. Property prices at key locations in any city are higher than suburban prices because such key areas are equipped with all the amenities and thus attract investors and buyers. Similarly, parcels of land in the suburbs of the city are available in abundance and their price is more reasonable.
Present and future land use – Often, government or local authorities impose restrictions on land development. The value of the land is also determined by the permission to use the land on the premises. It is also an important factor in determining land prices. In general, the use of industrial or institutional land attracts higher prices.
Can an NRI buy agricultural land in Haryana?
Foreigners cannot buy agricultural land in India. Some areas of Haryana have been declared as ‘Controlled Areas’. Suppose someone (except NRIs) wants to buy agricultural land in these areas for non-agricultural purposes. In this case, they will need to get a certificate from the Haryana government indicating the land-use change.
Cost of agricultural land in Haryana
The cost of agricultural land will change depending on several factors. Topography, soil quality, climate, and groundwater availability, etc., have a significant effect on land value.
Some other natural factors also affect the cost of agricultural land. Agriculture land prices vary based on several factors like topography, agro-climatic conditions, soil health of the land, existing irrigation facilities or type of irrigation infrastructure, average annual rainfall range, infrastructure facilities including road and market, surrounding social environment, crop sampling, crop rotation tracking, and surrounding forest cover, etc., may be affected. The cost of agricultural land in Haryana is approximately 20 lakhs to 1 crore.
Benefits of investing in agricultural land
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The following are the benefits of investing in agricultural land;
Agricultural land can guarantee long-term returns. Moreover, in the case of acquisition by the government, the compensation for rural lands is higher than for urban lands.
State governments are planning a land polling policy. Though, if you become an owner under the Land Polling Policy, you will be guaranteed a regular return from the polls. All land developments, assets do not diminish over time that cannot be said about the property. The investment in agricultural land gives you the option to use the land for many purposes in the future within the limits of the law.
The final price of the land is low because the cost of preparing it is shared between the owners. Thus, an investor has to pay less for such plots. The return on investment is higher especially due to the promotion of organic farming and the change in consumer tastes and preferences. Investors’ efforts and total costs are lower than any other investment but more profitable than that. There are two main benefits of investing in agricultural land, one is that it can save on maintenance costs and the other is that the value of agricultural land does not decrease. That way, investors don’t have to worry about the plot declining over time.
Necessary documents required for buying agricultural land in Haryana
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Jamabandi (Record of Rights) – Jamabandi is a document prepared as the record of rights in each revenue state. It includes entries on the latest information on a property, farming, and various land rights. It is reviewed every five years when a deposit is prepared by the Patwari and verified by the Revenue Officer. All changes to land rights in the Revenue Agency’s notice appear in the deposit according to a set procedure after being verified by the Revenue Officer.
Mutation register – Mutation identifies the changes that have to be made in land ownership and title. There are many types of mutations, they are sale, gift, a mortgage with property, mortgage without possession, exchange, mutation of property based on orders of a civil court, change of inheritance, distribution, term lease of land, and redemption of the mortgage.
Khasra Girdawari – This is a register of harvest inspections. Patwari inspects the field every six months in October and March. He records the facts about the crop grown, soil classification, cultivation, and the potential of the farmers. Khasra Girdawari’s document remains in the custody of Patwari for 12 years after it has to be taken back and destroyed.
Kharif Girdawari means the first 6-month inspection starting from October 1 and the 2nd from March 1 is called Rabi Girdawari. If necessary, different dates may be fixed by the Commissioners of the Divisions for any or all of the districts under their charge. In addition, in the case of additional rabi crops such as melons and tobacco which cannot be seen in March, the Patwaris carry out an additional inspection of such fields as Zaid Rabi Girdawari. In some cases, similar Zaid Kharif inspections are performed.
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Shajra Nasab – Shajra Nasab prepared at the time of settlement and to be a part of the record of rights. This is referred to as the genealogical table showing the periodic property rights in the property. It is reviewed and updated every five years and periodic changes are reflected in Patwari’s copy with appropriate references.
The Sharjah Nasab, which was developed at the time of the settlement, is a source of information on previous ownership, the history of the property, and, from time to time, the transfer of property rights. A copy is sent to the district record along with the deposit made in the township. The second copy remains with the Patwari and is withdrawn from the Tehsil or District Record Room when the new settlement takes effect.
Latha (field book) – Patwari puts a copy of the genealogy on the cloth which is called ‘Latha’. It gives the survey number and field dimensions, which are now usually produced on a scale of 40 Karam to 1 inch. The original copy is kept in the Tehsil Record Room and is updated every five years. Patwari’s copy is kept up to date by including field inspections and all transfers verified from time to time.
Important checklist of agricultural land buying documents in Haryana
Sale Deed – Also called Title Deed, Mother Deed, or Conveyance Deed, it is great proof of the sale of property and transfer of ownership from the seller to the buyer. It is also important for the buyer to make sure that the other party is the legal owner of the property at the time of resale. To add, this is proof of the buyer’s approval of the sale agreement. Must be registered with the Sale Deed Registrar within 4 months from the date of execution, within whose jurisdiction the purchased property is located. The buyer must have this document in its original form. This is necessary to buy a property or take a home loan.
Encumbrance Certificate – In case of resale, this certificate is shown to the new buyer so that he can be informed about all the transactions which have taken place since the purchase of the property from the previous seller. This confirms that the title of the property still belongs to the person who is selling it. An original copy of this Encumbrance Certificate is required.
RTC Extracts – This includes some details of the extent of land in a survey or non-survey number, names of seller and buyer, extent of Kharab land, and names of the tenants and issued by the Village Accountant. This includes the type of soil, any mortgage, charges levied on property, the status of the land, conversion order number, date if any property was converted from agricultural to non-agricultural land, mutation, inheritance certificates details are also included. It is necessary to establish the title of the land if the property is located on non-agricultural land, which used to be agricultural. You do not need to keep this document in its original form but you must have a copy for purchasing the property.
Khata Certificate and Extracts – This is an entry in the records of the local municipal committee and confirms that the property has been built based on the agreed and approved plan. This document is required for registration of new property and transfer of any property. The sour extract is required to obtain a commercial license. This certificate is required in its original form for property purchase and home loan.
Allotment Letter – It is issued to the buyer through Builder / Housing Society at the time of applying for a bank loan to purchase the property. It mentions the amount of money that the buyer has already paid to the builder to verify that the loan amount requested by the buyer is reasonable and the rest is equal to the unpaid amount. This document must be displayed in its original form.
Copy of Possession Letter – Possession letter confirms the delivery of property from builder to buyer on the date mentioned in the letter.
Receipt of payment – Receipt of original payment should be submitted to the builder as concrete proof of payment. Original format required.
Mutation Register Extracts – This is mainly used to establish a title if the land is built on converted land. An original copy of this document is not required.
Joint Development Agreement: This agreement is established in cases where the seller (landowner) contributes part of the land and the buyer (builder) carries out any development activity on it. This document states which party owns the original title to the property and does not need it in its original form.
General Power of Attorney(GPA) – The power of attorney is the authority that delegates to the buyer, making him his legal representative who can make legal and financial decisions, including the sale or purchase of property by the buyer. This is an important document and should be in its original form.
NOC – These are government approvals for power supply, and water supply, etc., which the builder needs to obtain before starting construction. These approvals are necessary to ensure that all required government approvals are in place.
Ratification Deed – Also called a supplementary agreement, if any changes are to be made to the principal clause, it must be entered into. It also avoids any future shocks to the amended clauses, which you may not be aware of. No original copy is required.
Certificate of Completion: A Completion Certificate is required from the municipal authorities as to whether the building complies with the rules regarding permitted building heights, and road distance, etc. This ensures that the building is constructed according to the approved plan.
Occupancy Certificate – It is issued when the construction is completed as per the approved plan and ready for occupation.
Agricultural land registration in Haryana
Land registration involves the documents preparation and applicable stamp duty registration charges for legally recorded sales deeds in the office of the Sub-Registrar.
What is Land Deed Registration?
Land Deed Registration is a land management system under which all important instructions relating to the ownership of a parcel of land are marked in the Government Administrative Register (Revenue Record). Deeds must be entered in the government’s revenue records to ensure the transfer of title (ownership) of a particular piece of land.
The state government has now started registering the names of agricultural lands in rural areas, which will start with e-appointment.
Process of taking re-appointment for registration of land deeds in urban areas – The state government discovered that under Section 7-A of the Haryana Development and Regulation of Urban Areas Act, properties No-Objection Certificate (NoC) are being registered at various places in urban areas. This led to an increase in the number of unauthorized settlements in the National Capital Region (NCR) that includes Gurgaon, Faridabad, Sonipat, Panipat, and Rohtak. According to the amended section 7-A, no agricultural land less than two Kanals in an urban area can be transferred by sale or lease through the Town and Country Planning Department with NOC.
Three types of security features have been introduced in the registration process. These include the application programming interface of the Town and Country Planning Department for issuing NOCs for notified urban area lands under Section 7-A of the Haryana Urban Development and Regulation of Urban Areas Act. Another feature is the One Time Password (OTP) which will be generated after handing over the registration documents to the original owner of the land. The third feature is for Revenue Department officers to upload a copy of the sale deed to HALRIS (Haryana Land Record Information System) within 24 hours of land transfer registration.
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Legal points important for buying agricultural land
It is important to verify that the land has a clear and salable title to avoid getting into legal trouble. Make sure the agricultural land registration should be hassle-free for buying agricultural land in India. The process of purchasing agricultural land will change from state to state.
The title deed of the land plot – It confirms the name of the seller of the title of the property and also confirms whether the seller has full right to sell the property. The actual current practice and past practices should be examined by a lawyer to confirm that the seller did not allow access to others through the land. If the land is owned by more than one person, a certificate of release must be obtained from the other participants before the documents can be entered.
Sales Agreement – After all documents have been verified, a written agreement is made about the cost, advance payment, and actual sales time. The sales agreement must be prepared by a lawyer and signed by the parties and two witnesses. It is important to mention here that the document sale agreement is a prelude to the sale deed. In this document, future agreements are likely to proceed based on the terms and conditions established. Consequently, before signing a sales contract, it is very important to carefully set the terms and read each clause diligently to fully understand its implications.
Stamp duty on land – Stamp duty on land is a government tax and changes from state to state. It will be considered a legal document and submitted to the court as evidence.
Land registration – It 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 based on the Indian Registration Act, 1908. Provide details such as original title deed, past deeds, house tax receipts, and two witnesses for property registration in the document.
Sale deed of the land – A land deed is also called a sale deed; it is a document that transfers the title of the property from the seller to the buyer. A conveyance deed 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 inquire about them at the municipal offices. The buyer must ensure that notices for the property are not pending.
Encumbrance certificate (Ec) – An Encumbrance Certificate for the last 13 or 30 years can be obtained from the office of the Sub-Registrar, to ensure that there is no legal liability or complaint on the land.
Land Measurement – A certified surveyor can ensure that the measurement of the plot and its boundaries is accurate and as indicated in the title certificate.
Changing the title of the agricultural land in the village office – All legal procedures for purchasing the property are completed, only if the name of the new owner is included in the records of the village office. A copy of the registered deed can be applied at the village office.
Purchase of land from NRI landowners – An individual residing abroad may sell his land in India by authorizing a third party to sell the land on his behalf. In such cases, the power of attorney must be attested and signed by an officer of the Indian embassy in his province.
Mistakes to avoid when buying agricultural land
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No matter how well prepared you are, buying agricultural land can be a stressful experience. Taking a cue from some of the issues, identify the top mistakes that farmers make and how you can avoid them.
1. Not to check if the seller has all the necessary permission to sell – Make sure the seller has all the necessary documents and permissions to sell his property. If he does not, you may get in trouble later because you will be asked to provide those documents as well. The title of the land you are going to buy should be non-controversial and free of charge. You need to ask the seller and confirm whether he has a legal right to sell the property. Ask the seller for a title deed that clearly states his name.
2. Not going through the land laws of the state – Land is a state subject and thus each state has different laws governing the sale and purchase of land. For example, all the states require a farmer or a person belonging to your farming family to buy land for agricultural purposes. If you do not meet any of these conditions, you will have to go through a different procedure that varies from state to state. So, if you are going to buy a piece of land in a state other than your own, don’t forget to go through the rules and regulations of that state.
3. Do not test the soil – If you want to buy land for farming, it is important to test the soil before making a purchase. The type and quality of the soil may vary from region to region, so you may want to test it before planting. Make sure you should ask the seller if you can take a sample of soil. Learn the correct way to collect soil samples for testing here. After you submit your soil samples, you will need to send them to a government-approved soil testing laboratory. Here is a link to a list of approved laboratories in your state.
4. Not measuring the land with a recognized land surveyor – Buying land is a big investment for anyone, and so it is important to make sure you get accurate land measurements. The measurements on the map and paper may not be the same, so make sure it is from a professional for you. If you don’t, you could lose money in the future.
5. Not getting an Encumbrance Certificate – An Encumbrance Certificate is a document that details all previous transactions on land for the last 13 or 30 years. You should be aware of all the charges and taxes associated with it before buying land. To pay them off, you need to know about all the loans taken on them. If there is any outstanding debt left, you will have to pay it off. That is why it is important to get an Encumbrance Certificate. You can get an Encumbrance Certificate for the land from the office of the Sub-Registrar where the land sale deed has been registered.
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