Introduction to how to buy agricultural land in Kerala: Agricultural land is land that is used for raising livestock and producing crops. Agricultural land is generally land devoted to agriculture. Crop production, especially for raising livestock and producing food for humans. Thus, it is usually synonymous with farmland or cropland as well as pasture or rangeland.
Before buying arable land, you need to do several checks to make sure the land has a clear and marketable title. The first thing is to know the period of the landowner, the legal right in the official record. The seller must provide the buyer with all the necessary documents. Identify property by nature of property; Whether it is residential/commercial/industrial or agricultural, whether the land on which the building is being constructed or is about to be constructed is freehold or leasehold. Nothing prevents you from buying agricultural land in Kerala. The only condition is that you cannot convert it to any commercial purpose or any other purpose which is not for agricultural activities without permission. Despite the wide range of tools available, measuring and describing changes in land cover and land use in the tropics can be extremely difficult. Kerala is a long history of complex patterns of agricultural land use. The state plans to enact a new law, and amend existing laws, to allow the leasing of agricultural land on licensed leases, removing the decades-old restrictions imposed by the Basic Kerala Land Reforms Act.
A guide for how to buy agricultural land in Kerala, restrictions, documents required, and schemes for buying farm land in Kerala
The agricultural sector faces the most serious risks from over-exploitation and conversion of land into other uses, which results in degradation and degradation of agricultural land. The growth trend in the agricultural sector in Kerala has not been consistent with the decline in the share of state revenue. Agricultural land conversion, especially of which paddy fields, has been a serious issue in recent times in terms of both food security and its environmental impact. Most of the people in Kerala depend on agriculture and allied activities for their livelihood. Agriculture in Kerala has gone through many changing stages. Land depletion occurs on a large scale, mainly due to changes in land use hence agricultural land decreased dramatically. Biodiversity in agriculture is a thing of the past. In Kerala, farmers have lost their strong connection with the land. From Kerala, paddy fields and rice fields are rapidly disappearing and declining, threatening the state’s food security.
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Can NRI buy agricultural land in India?
NRIs can buy both residential and commercial properties in India but cannot buy agricultural land, farmhouses, or planting properties.
Conditions for buying agricultural land in Kerala
Anyone can buy agricultural land in Kerala except NRIs. According to the Kerala Land Reforms Act, 1963, the maximum area of ​​land is as under;
a) An adult unmarried person or the only surviving member of the family, five standard acres land and the ceiling limit is 6 and not more than 7 and a half acres.
b) For a family of two or more but more than 5 persons, 10 standard acres land and the ceiling limit shall not be less than 12 and not more than 15 acres.
c) If it is a family consisting of more than five members, then the standard acre for each member of more than five is exceeded by one standard acre, and not be less than 12 acres of land in the ceiling limit and not more than 20 acres land.
d) For any individual, 10 standard acres and maximum limit shall not be less than 12 and not more than 15 acres land.
According to the Kerala Land Reform Act, any land purchased for agricultural purposes can only be used for agricultural purposes. The village office has a list of all the lands within this panchayat which is under the recent survey which has been shown by the survey number. You get a survey number from the recent Land Tax Bill because each bill has a unique 12-digit number and you can request a copy of the bill from the landowner. You will need to find the Survey Number and Tandapar Number.
You can also view land details online by entering your survey number at a reasonable value for the land. The bill contains all the details you need such as Panchayat, Taluka, District, etc. Recently, the Kerala government has revised all land rates. Converting wetlands is a long and time-consuming process but you can do it. If it is more than 5 cents, it is discouraged unless you have strong political support. Land change usually occurs in large numbers when the UDF is in power. This is a risky process but if you can convince the village officials that the sole purpose of the land is to build your houses and not for any commercial purpose.
Kerala has diverse land use and crop pattern. The land reforms introduced in the state have brought about fundamental and comprehensive institutional changes which have resulted in drastic changes in the style of land ownership. As a result, the use of land has changed.
Agriculture is the dominant type of land use in the state. It covers more than 55% of the geographical area, followed by forest land (including degraded forest) at 28% but the area under non-agricultural use is only 11%.
Cost of agricultural land in Kerala
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This difference observed in cost regions can be attributed to lease rent according to different geographical and environmental factors such as the topography of the land, availability of market, irrigation facility, and soil productivity. Legalizing the lease farming system can increase the income of tenants and tenants by increasing agricultural production.
The cost of agricultural land will change based on many factors. Topography, soil quality, climate, and groundwater availability, etc., have a significant effect on land prices. Some other natural factors also affect the value of agricultural land.
Agricultural land prices vary based on many factors such as topography, agro-climatic conditions, soil health, existing irrigation facilities or type of irrigation infrastructure, average annual rainfall threshold, infrastructure including roads and markets. Facilities, surrounding social environment, crop sampling, crop rotation monitoring, and surrounding forest cover can be affected. The cost of agricultural land in Kerala is approximately 20 lakhs to 1 crore.
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Purpose of Kerala Gramin Bank agricultural loans
The agricultural loans offered by Kerala Gramin Bank can be classified into Krishi Card, term loans for agriculture, loans for the development of rubber orchards, the establishment of rural marketing and agribusiness centers, and agricultural uses can be classified into loans for the purchase of land.
Krishi Card Loans are designed to meet short-term financial needs. The annual cost of equipment and soil protection. Structured Terminal loans for agriculture are designed to cover all costs incurred in any type of agriculture and its activities. The loan covers agriculture, which includes everything from planting to coconut to circular culture, fish farming irrigation systems, and the resulting activities. The term loan for the development of rubber plantations is designed to replant traditional areas or to replant non-traditional areas and improve productivity through agricultural management.
Rural marketing loans are designed to enhance and maintain existing marketing facilities for non-agricultural products. Loans for agribusiness units are designed to provide additional funding for the establishment of centers that provide agricultural equipment for rent, among other services. Loans for the purchase of land for agricultural purposes are allowed to buy small and modest holdings or bring under fallow lands under cultivation.
Eligibility Criteria – These eligibility criteria are different for each loan. For a Krishi Card loan, the farmer must be the owner and cultivator.
For agricultural loans to buy land, the borrowers need small or medium farmers who will own a maximum of 5 acres of irrigated land or 2.5 acres of irrigated land. When considering an application for such a loan, the farmer is required to submit the details of the project proposal. To set up an agribusiness center, the borrower must be a graduate in agri-activities, whether it be Pisciculture or sericulture, and a rural marketing outlet.
Features of Kerala Gramin Bank Agricultural Loans – The interest rate for short-term agricultural loans is 12% p.a. If the amount received is Rs. 3 lakhs or less and is 13% p.a. If the amount received is more than 3 lakhs rupees. Interest Rate on agricultural term loans 13% p.a. regardless of the amount taken.
The rural marketing outlet loan provides a maximum loan amount of up to Rs. 25 Lakhs with a margin of 25% of the project cost. The payment period varies from 3 years to 10 years and the initial suspension period is from 12 months to 18 months. There is a loan margin for the purchase of agricultural land which is at least 20% of the project cost. For this loan, the land purchased from the borrower has to be kept as security. When purchased land is mortgaged in favor of the bank, it acts as security. In addition to mortgaging the land purchased, collateral guarantees such as land property worth the amount of the loan are also accepted. Borrowers can also mortgage a LIC policy or National Savings Scheme policy whose surrender value is equal to the value of the loan amount. The repayment period of this loan is 7 to 10 years in which the installments are annual or semi-annually and its maximum suspension period does not exceed 24 months.
Types of agricultural land in Kerala
The Government of Kerala has informed the classification of farmland into five agro-ecological categories based on soil type and topography. The Department of Agriculture is demanding amendments to the Land Reforms Act to include the cultivation of fruits and vegetables in orchards to achieve the targets. The 5 main categories are inland areas, coastal, valley, hilly areas, and the Palakkad plain. In addition, there are 23 agro-ecological units under five categories.
Check documents before buying land in Kerala
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1. Convention Deed or Sale Deed – Title Deed – This is a deed document performed by the seller and the buyer. Through this, the title of the property is passed on to the buyer through the seller. Conveyance is the process of transferring property ownership from seller to buyer. The first step is to look at the title deed of the land you are going to buy. Verify that the land is in the name of the seller and that the sole right to sell the land belongs to him and not to anyone else. It is better to review the original letter with experts. Along with the title deed, the buyer may also ask the seller to look at the past deeds of the available land.
2. Previous Document – This document issued by the office of the Sub-Registrar contains the names of the sellers and buyers of the property for whom this document is registered.
3. Receipt of basic tax issued by the Land Revenue Department -This document, issued by the relevant land authorities, includes details such as survey number, area, and date – from which the current owner is registered as the owner and whether or not his name has been altered. If the owner does not have a tax receipt, in which case contact the village office with the survey number. Verify the land and verify the original owner of the land.
4. Encumbrance certificate – Encumbrance certificate means the charges or obligations made on a particular property, under which it is held as collateral for any debt of its owner which has not been paid to date. Certificate can be obtained on the application in a prescribed form provided by the authorities from the concerned sub-register office. It usually takes about 2 weeks to get the certificate in a normal course. Government officials and financial institutions like banks etc. demand 13 years of encumbrance. There will be a small fee to receive, depending on the number of years. Arrangements are made to pay a “double fee” to receive it immediately in an emergency.
This certificate will show the authenticity of the title of the owner. In the normal course, this certificate will be a full-proof document, but it may contain clerical errors. The Sub-Registrar’s Office, our vigilance can investigate this error. Therefore, it is always advisable to personally inspect the property and verify and verify that the original title documents are available to the property owner.
5. Certificate of Occupancy – This certificate can be obtained from the office of the concerned village in which the officer of the village concerned has been directed to affix the required court fee stamp on the white paper. No fee will be charged for this. The certificate of possession will prove the current owner of the property concerned as per the date. Upon verification of the applicant’s relevant documents and site inspection by the village officer, he will confirm with his signature and official seal.
6. Title Certificate – An advocate issues a title certificate after searching for the title of the property required for purchase. The title certificate will state whether the property is irresponsible and has a clear salable title. The search for property titles is usually done over the last 30 years. The developer must attach a copy of these reports to the intended buyer of the apartment in the “Agreement for Sale”. These documents will state whether the title to the property is clear, salable, and free of burdens. It will clearly state whether there is an existing mortgage, litigation, condition, or claim, which is likely to harm the buyer’s title.
7. Location Map and Property Outline – This shows the location of the requested property. It includes distance from the main station and if any distance from subway main road to property etc. Landmark of property, boundaries of a property, measurement of property, if there is any building or house then a detailed description of the same will be done in the location map.
8. Non -attachment Certificate – The village officer should note the receipt of any tax-related legal issue through the unattached certificate tehsildar.
9. Building Tax Receipt – This certificate is issued by local government bodies like Panchayat, Municipality, Corporation. If you are buying a home with a property, you should also check the house tax receipt. Also, make sure the electricity and water bills are up to date and if any balance has to be paid, make sure the seller has done it.
10. Non-Agricultural Land Permission – If the land you intend to purchase is a paddy field or agricultural land and if you use it for residential/commercial/industrial purposes, then agricultural land is not allowed. Must be converted to agricultural land and must be a non-agricultural order has to be obtained from the District Collector where the property is located. In addition, one needs to get the latest receipts proving non-agricultural tax payments. In cases where the change from agricultural use to non-agricultural use does not occur within the stipulated period, an extension of the period should be ordered by the concerned authority.
Precautions for purchasing agricultural land in Kerala
Check the antecedents of the vendor – Verify all attached documents and title deeds before buying agricultural land. But we fail to confirm the vendor’s previous incidents. It is better to confirm the role and background of the vendors in advance. If vendors are habitual offenders and are involved in real estate crimes or other offenses, it is best to abandon the idea of ​​buying a property. If the vendor background is good; And if his character and reputation are undoubted, then the transaction will be very smooth. You don’t have to spend precious money and time.
Check the title of the property – Property title forms the basis of any agreement. No seller can give a buyer a better title under the Indian Contract Act. The title of the seller must be clear and free from any kind of burden. Verify seller title before purchasing the property. Records can be searched at the Sub-Registrar’s office for documents that affect the property and can be registered. The report will show the recorded owner of the property title and changes in the property title. If the land is the agricultural purpose, then the land can be demanded from Adangal / Pahani / Khatta or Pattadar passbook and title deed seller.
Check the original documents – Inspect the original documents of the seller. It is best to know the full facts about the lost documents if the original documents are missing/lost. Find out if the shopkeeper has lodged a complaint with the concerned police station and obtained a copy of the FIR regarding the loss of documents, and/or what other steps he has taken to find them as a sensible person. The original documents are likely to be kept in banks / private lenders/ financial institutions so that title deeds can be collected and mortgaged/charged on the property. Though, it is better to get complete information about the missing original documents. And it is always best to issue a public notice based on certified copies of title deeds instead of the original documents regarding the purchase of the property which were lost.
Encumbrance Certificate – Before buying land, it is necessary to verify that there are no legal obligations on the land. Carefully check the EC (Encumbrance Certificate) issued by the Sub-Registrar’s Office.
Agricultural land registration in Kerala
The land registration process is governed by Section 17 of the Registration Act, 1908. All transactions involving the sale of immovable property must be registered with the owner to ensure the transfer of the clean title.
Section 17 Indian Registration Act – Section 17 of the Indian Registration Act, 1908 states that all transactions including the sale of immovable property, gift of immovable property, and lease of immovable property for more than 12 months of immovable property for a value of Rs. 100 and above should be registered.
Purpose of Property Registration (Dead Registration) – Immovable property registration provides the following benefits;
- With the registration of the property, the transfer document becomes a permanent public record.
- Anyone can inspect the public record, and a certified copy of the document can be obtained.
- Property registration is informing the public that the owner has transferred the immovable property to the buyer.
Documents required for registration of property in Kerala – The following documents are required to be submitted to the Registrar for registration of property.
- Proof of Ownership
- Certified copy of original old sale deed, MC Assessment or Mutation
- Identity Proof (Ration Card, Voter ID, Driving License, Aadhar Card or PAN Card)
- NOC
- Two Witnesses Identity Proof
- Description of immovable property
- Digital image of the property
Purchase of land for agricultural purposes in Kerala
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Purpose – The purpose of this scheme is to provide term loans to small/marginal farmers in which share cultivators/tenant farmers have to buy agricultural land as well as produce/develop and cultivate fallow land.
Eligibility
- Small farmers who own 2.50 acres of irrigated land and a maximum of 5 acres of non-irrigated land.
- Sharecroppers or Tenant Farmer up to 2.50 acres of irrigated land or including purchased land 5 acres of irrigated land.
- Agri-Business people who do not own agricultural land but have an agricultural background are also eligible to obtain a loan to purchase agricultural land, provided the relevant state laws allow, non-farmers to purchase agricultural land.
- Farmers should remain in the category of small farmers.
Margin – Margin will be at least 20%.
Security
- Since bank-financed land is a basic guarantee, the mortgage on the land purchased should be considered regardless of the amount of the loan.
- In addition, the mortgage on the land currently owned, if any, is used as security.
- The loan amount should not be more than the current land value of the proposed land to be purchased.
Land purchase scheme in Kerala
Purpose – To help small and backward farmers and landless agricultural laborers who are our current creditors to purchase land to consolidate land ownership and develop barren lands and fallow lands.
Features
- Loan Amount – Cost of land
- Provision of irrigation facilities and development of land (shall not exceed 50% of the value of land).
- Purchase of agricultural implements.
- Registration charges and stamp duty.
- The loan amount will be 85% of the cost of the agricultural land. It is assessed by the bank, subject to the maximum of 5 lakhs rupees Security
- Mortgage of land to be purchased
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