How To Buy Agricultural Land In Telangana

Introduction to how to buy agricultural land in Telangana, process, documents required: Let’s know about agricultural land, As its name suggests, it usually refers to land required for farming and agricultural purposes. Agricultural land promises profitable long-term returns. However, if a hasty decision is made, such miscalculations can lead to significant losses. If a person lacks the required information about the legal procedure involved in buying agricultural land in India, he can be easily deceived. Therefore, it is always advisable to do your homework and learn about the various legal procedures involved before buying agricultural land.

Before buying agricultural land;

  • It should be clear what to expect from the ownership of the farm.
  • Make sure there is a clear title to the land being purchased.
  • Check the seller’s background.
  • Ask the local body authority and the revenue and registration departments about the title of the land.
  • An encumbrance certificate must be verified to know about previous owners and land registration.
  • Must know the laws of the state to agriculture.

A guide to how to buy agricultural land in Telangana, the land cost in Telangana, documents required to buy farmland Telangana, agriculture loan schemes in Telangana

How To Buy Agricultural Land In Telangana
How To Buy Agricultural Land In Telangana (pic source: pixabay)

Benefits of investing in agricultural land

There are huge benefits to investing in agricultural land in India. The main reason is that the income from it and the profit from the sale of agriculture are tax-free. It is also unlikely that it will be taxable in the coming years.

Various benefits of agricultural land;

  • Owning an agricultural farm is a useful option for generating long-term wealth.
  • There is a similarity in supply and demand across the country, which leads to an increase in the prices of agricultural commodities.
  • A farm plot is a stable for-profit asset that has stood the test of time.
  • It has been a storekeeper of fortune, wealth, and value.
  • You will reap huge benefits in the long run because the value increases over time.
  • A great hedge against inflation

Necessary documents to purchase agricultural land in India

Title Deed of Plot – This deed is constructive to check whether the seller is authorized to sell the land in his name and especially in case more than one person owns the land. Owners of the land being sold; the lawyer confirms this if the consent of all the owners and other relevant debtors involved in the land is involved.

Agreement of sale – The buyer and seller have to sign a written agreement in front of a lawyer. This written agreement ensures that every document submitted by the parties involved has been duly verified and there is no room for doubt.

Stamp Duty – The payment of stamp duty is about the payment of government taxes, and may vary from state to state.

Land Registration – A document signed by both parties is recorded in the registrar’s office and tells the T&C about the transfer of property to the buyer. This includes house tax receipts, original title deeds, and past actions in the presence of two witnesses.

Tax Receipts and Bills – The buyer should ask for tax receipts and invoices and make sure that there is no outstanding bill or receipt amount left on the land they are buying.

Changing the title of the land – Once everything is done and dusted, the title of the land needs to be updated with the name of the new owner. Make sure it is recorded in the official village records.

Submit Certificate of encumbrance and Land Survey – These documents should be obtained from the Sub-Registrar’s Office as valid proof that the acquired land is free from any legal complications and obligations.

List of points to consider when buying agricultural land in Telangana

Find the address of the land – Find out the exact extent, survey number, and boundaries of the land you intend to buy and the Revenue Village in which it is located. It is important to find out if the land is shown on the paper and the details of the land on the ground are the same. Village map, Tippan / FMB and Pahani / Adangal will help to know these details. Also, it is helpful to survey the land before proceeding with the purchase.

Land Classification – The law prohibits the purchase of certain categories of land. Find out if the land you want to buy falls into any of the prohibited categories. Government lands, lands allotted by the government to the landless poor, and forest lands are some of the categories of land which cannot be purchased. Only tribals can buy land in Scheduled Areas. Land classification can be ascertained from Setwar / RSR, Pahari / Adangal, IB Register, Pattadar Passbook, and Title Deed.

Is the seller the real owner? The person who owns the land can only sell it to others. The buyer 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 insecure right. Title Deed, Pattadar Passbook, 1B Register contains details of the landowner. Check all three records to see if the seller is the real owner. The encumbrance certificate also shows the name of the owners on the land and previous transactions.

Existing Claims and Disputes – Find out if there are any existing claims or disputes on the land. Inquiries at the Tehsil (Block Revenue) office and with neighboring landowners may reveal any existing claims or disputes.

Sale Deed and Registration – Get a detailed sale deed with complete details about the land and details about the owners. The sale deed must be registered. Unregistered sale transactions are invalid.

Mutation – It means applying to the Tehsildar within 90 days from the date of registration in form 6A for mutation in land records and obtaining Pattadar Passbook and Title Deed. However, the application can be made after 90 days.

Surveys and subdivisions – Get land surveys and subdivisions.

Entry in Pahani / Adangal – Enter your details in Pahari / Adangal.

Obtain copies of land records – Get certified copies of Pahani / Adangal, Tippan / FMB, and 1B Register. Check the Pahari / Adangal every year to make sure your name is on the record.

Agricultural land cost in Telangana

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Agriculture Land Cost in Telangana
Agriculture Land Cost in Telangana (pic credit: pixabay)

The price of agricultural land has gone up since the implementation of the Rythu Bandhu scheme in the backward undivided Adilabad district. In Jainath Mandal, which is rich in black soil and suitable for growing cotton, a couple of years ago the price of agricultural land has gone up from Rs. 5 to Rs. 6 lakh per acre and now it is raised to Rs 8 to Rs 10 lakh.

In the erstwhile Nizamabad district, although no new irrigation projects have emerged, land prices have risen mainly due to Mission Kakatiya, which has increased water supply to the farmlands. Improvements in the Sri Ram Sagar Project flood flow canal have provided water to several tanks in the Balkonda Assembly constituency. The cost of agricultural land is rising due to irrigation projects and the construction of canals in Medak and Sanga Reddy.

In the Siddipet district, irrigation projects such as Ranganayak Sagar and Kondapochamma, as well as canals, have increased the value of agricultural land. In Gajwel, the price has gone up from Rs 10 lakh per acre, when the government acquired the land three years ago, to about Rs 1 crore now. There seem to be two main reasons for the declining trend in the price of agricultural land: the Telangana government’s approval and construction of new irrigation projects and the provision of redundancies to farmers – a scheme that guarantees a fixed annual income from land. This discourages their sale, and together they are turning the state into a land of milk and honey. The cost of one-acre agricultural land in Judcherla, Mahbub Nagar is about Rs. 39,00,000.

Precautions for purchasing agricultural land

Purchasing property/land requires extreme caution. To find out the nature of the seller’s title or his right and the seller can only sell what he has. So, if the seller has the right and correct title, you will get the right title on the purchase. If the seller’s title is defective, you will only receive a defective title. The simple argument is that he can sell what he has, and nothing else. When buying a property, legal precautions are necessary to avoid getting involved in legal issues later. Some important precautions are taken before finalizing a property deal.

Check antecedents of the vendor – We verify subtitle deeds and all attached documents before buying a property. But we fail to confirm previous vendors’ incidents.

Check the title of the property – The title of the property forms the basis of any agreement. According to the Indian Contract Act, no seller can give a better title to a buyer than he already has. Therefore, the title of the seller should be clear and free from any kind of burden. Verify seller title before purchasing a property. Records can be searched at the Sub-Registrar’s office for documents that may affect the property and may be registered. The report will show changes in the title owner of the property and the title of the property. If the land is agricultural, then the land can be demanded from the seller of Adangal / Pahani / Khata or/and Pattadar Passbook and Title Deed. The assessment register ledger entry is a supporting document of the title. This is the current owner’s entry in the municipal / panchayat record of the home property. By applying for a mutation, the absence of an assessment register entry in the current owner’s name can be corrected at any time. This is important because it is required for loans, title opinions, renaming of electricity meters, etc. The entry of the assessment register ledger is changed after execution of sale deed or inheritance of property through a will, gift, distribution, etc., if applied and a mutation is requested.

Personal inspection of property under sale – Buyer caution is the golden mantra in immovable property transactions. Therefore, the buyer is responsible for verifying the title, ownership, and possession of the property. He should take all reasonable steps to ensure that he is buying the right person from the right person and the right property. The most important precaution is to inspect the property under sale. During the personal inspection, the buyer will inquire from the neighbors about the ownership and possession of the property, if there are any disputes, about the seller’s personality, charges/mortgage on the property, joint owners of the property, or part of the property, etc. It is easy to inspect the site and building in densely populated areas. It is also easy to inquire in villages where people can identify people by name.

Check the original documents – Always inspect the original seller documents and read all the documents carefully before signing them. It is better to know the full facts about the lost documents if the vendor says that the original documents are missing/stolen/lost. Find out if the vendor has lodged a complaint with the concerned police station and obtained a copy of the FIR regarding the loss of documents. The original documents are likely to be kept in banks / financial institutions / private lenders so that title deeds can be collected and mortgaged/charged on the property. Therefore, it is better to get complete information about the original documents that are missing. And it is always best to issue public notices based on certified copies of title deeds rather than original documents regarding the purchase of property that were lost.

Color Photostat copies frauds – The technology used in color photo state machines today is very modern. And the copies made using these machines are of the highest quality. Clever shopkeepers can deceive innocent buyers by providing color photocopies instead of real ones. Therefore, a proper check will be made to verify whether the documents are genuine or color photocopies.

Encumbrance Certificate – Before buying land, it is necessary to confirm that there are no legal obligations on the land. In Telangana, EC (Encumbrance Certificate) issued by the Sub-Registrar’s Office will be checked where the deed is registered in mee Seva centers, stating that there are no legal obligations on the land.

How to check the market value of land in Telangana using the Dharani portal?

Currently, this facility is only available for agricultural lands. Follow the step-by-step procedure to check the market value of land parcels;

Step 1) Visit the Dharani Portal and click on ‘Agriculture’.

Step 2) Click on view market value of land for stamp duty and you will be redirected to a new page.

Step 3) Select District, Mandal, Village, Town, and Survey Number from the drop-down menu and then click on ‘Fetch’.

Step 4) The market value will appear on the screen.

Loans and schemes for purchase of agricultural land in Telangana

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Agriculture Land in Telangana
Agriculture Land in Telangana (pic source: pixabay)

Objectives of a loan scheme for agriculture land purchase

  • To assist different types of farmers in purchasing land to increase agricultural production
  • Use of fallow lands for farming
  • Easy access to land for purchase of land
  • Encouraging other agricultural sectors while diversifying existing activities

Eligibility – Individuals who have started farming and allied sectors are eligible for loans. Thus, the following people are eligible for loans through the purchase of agricultural land;

  • Small and marginal farmers (owners of less than 5 acres of dry land or 2.5 acres of irrigated land even after purchasing land from loan)
  • Sharecroppers and tenant cultivators (as above)
  • Entrepreneurs with an agricultural background

Required Documents

  • Land documents (Certification from Revenue Authorities)
  • No due certificate applicable in Cooperative Credit Society or Commodity Boards Financial Institutions
  • Documents of title
  • Some supporting documents as proof to right over the land
  • Simplified Application (Loans less than 3 lakh only)
  • Additional documents mentioned by the concerned bank

The processing charge for loans up to Rs. 25,000 will be nil but banks have decided to go beyond that.

Land purchase scheme in Telangana

This scheme will be the main focus of the Annual Action Plan under the SCSP (Scheduled Castes Sub Plan) for the financial year 2015-16, as most of the Scheduled Castes in Telangana are involved in their daily life and survival. Therefore, they depend on agriculture and related fields (horticulture, sericulture, fisheries, and animal husbandry, etc.). The poorest SC women beneficiaries who are landless agricultural families completely will be given up to 3 acres of land in the first phase and SC beneficiaries who have small plots of land i.e., ½ acre, 1.00 acres, and 2.00 acres land, etc. In the next steps with the land balance limit, to make the landowners of 3.00 acres of land. In addition to providing funds for land development, to provide irrigation facilities, drip facility, seeds, cost of cultivation, fertilizers, pesticides, plowing, micro-irrigation, energization of pump-sets, etc., for one crop year comprehensive package is envisaged preparation of nursery and agricultural inputs. The money will be transferred directly to the beneficiary’s account to cover the cost of cultivation etc. The land purchase scheme will be implemented with 100% subsidy and without any contribution from the users and also without bank link. District Collectors have been given powers to purchase agricultural land from Rs. 2.00 lakhs to Rs. 7.00 lakhs per acre in the 9 Districts of Telangana State excluding Hyderabad.

For the people of Telangana state, the Telangana government has issued some guidelines while purchasing agricultural land in Telangana. These are some of the important things to check before buying land in Telangana. Anyone can do this verification online from home before buying agricultural land. Therefore, if you are thinking of buying agricultural land or farmland in Telangana, it is better to follow the guidelines issued by the Telangana state government.

9 records need to be verified according to the Telangana government before buying agricultural land in Telangana. They are;

1. Original Sethwar – The original Sethwar shows us the total range of survey number ratings and survey number information. For example, land can be purchased if a person’s name is shown as Khatadar in comparison to the survey number, land should not be purchased if there is no rating in the survey as Gairan because the land belongs to the government.

2. Khasra Pahani 1954-55 – Khasra Pahani 1954-55, land can be purchased if the survey number is classified as the lease. For example, if the land classification is listed as a waiver reward, then the ORC should be taken from the RDO.

3. Protected tenant register for the years 1951-52 – In the protected tenant register, land can be purchased if a secured tenant is found. For example, if it is recorded that 60% share and 40% share to P.T. holder and if the seller has a record as a lessee, check if he is selling 60% of his share.

4. Ceiling register prepared in the year 1976-77 – Land can be purchased if the survey number is not found in the Ceiling Register. Land cannot be purchased if it is not found in the Ceiling Register.

5. R.O.R Pahanies i.e., 1979-80 and 1989-90 – If the name of the Pattadar is one in the Pattadar column and occupant column, then verify the boundary of R.O.R with the boundary in Khasra Pahani. Verify the flow of titles from 1954-55 to 1979-80 and 89-90 about the link documents. If not, an application for correction should be filed before the concerned Tehsildar. If the name of the lessee in the said survey number and the name of the Pattadar in the occupier’s column are different, then it is better not to buy such lands.

6. Last 5 years Pahanies – In the last 5 years, if it is found to be correct, the land with survey number can be purchased, if not, confirm the title flow of 1989-90 regarding the link documents.

7. Latest year Pahani – If the seller’s name is listed in the Pattadar column and the occupant column, the land with the survey number can be purchased, if the flow of title of 1989-90 is not confirmed, regarding the link documents.

8. Encumbrance certificate of last (15) years – If the link of survey number is found to be correct then the land can be purchased otherwise if the link of survey number is not correct then they should not buy land.

9. 22-A Register – If the survey number of the land you are trying to buy is not in the 22-A-register, the land can be purchased. If it is in the survey register, it is prohibited for registration, so, don’t buy land.

Telangana agricultural land value certificate

It is a document that confirms the value of the land at a particular time. The Telangana government periodically fixes unit rates for land or property in the state. Based on unit rates of land administered by the Telangana government the property registration charges and stamp duty are calculated. The value of the government-owned property will be periodically reviewed according to market value and reasonable price. The Telangana Agriculture Land Value Certificate currently measures the value of land in that particular area at the current market rate.

Uses of Telangana Agricultural Land Value Certificate

Agricultural land value certificate is used in many places but in addition to crop loans. Here are the uses of the Telangana agricultural land price certificate;

  • A land valuation certificate is an important document for obtaining a property loan from a bank.
  • This certificate is used to increase the credit limit of the loan.
  • When a person wants to register as a contractor, a certificate of land valuation is a must.
  • For security purposes, this certificate can be presented when applying for a loan.
  • The Telangana Agricultural Land Value Certificate is very useful for applying for a visa.

Attributes in Telangana Agricultural Land Value Certificate

The following details regarding agricultural lands will be entered in Telangana Agricultural Land Value Certificate.

  • The Telangana Land Assessment Certificate is one of the required documents to get the details of the property listed on the property registration.
  • This certificate provides details of the unit rate of land by date.
  • The Telangana Land Valuation Certificate also presents the year of value and time of valuation.
  • Landowners are advised to check and obtain a land valuation certificate every 3 to 5 years.

Documents Required to obtain Telangana Agricultural Land Value Certificate

The following documents must be submitted;

  • Agriculture land value certificate application form
  • A copy of the registration documents
  • A copy of the pattadar passbook
  • A copy of the title deed
  • A copy of the Encumbrance certificate issued by the sub-registrar on the date mentioned on it.

New rules for buying agriculture land registration in Telangana

The Municipal Administration and the Urban Development Department have introduced a new rule for agriculture land registration in Telangana to avoid any complications after the purchase of agricultural land. If its area is less than 2,000 square meters or 20 guntas farm plot registration is not possible and an approved layout copy is required if the farm plot abuts a new road.

To make it easier for you to better understand, no one can buy farmland if the size of the land is less than 2,000 square meters or 20 guntas and if the agriculture plot shares a boundary with a new road.

New rule – The Municipal Administration and Urban Development Department holds the power to curb unauthorized buildings and layouts which in the future can cause inconvenience for the end-users.

Despite arrangements in place, it has come to the notice of the state government that some developers continued to develop unauthorized layouts in the name of farmlands and prepared sale deeds for 2/3 guntas plot size. The new rule aims to prevent unauthorized farming transactions that make up the project, whether residential or commercial, safe and secure for investment purposes.

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