PROPERTY ACQUISITION PROCESS IN INDIA
The property acquisition process in India has been simplified and made very easy in the recent times. In most of the area sale and purchase of property is allowed subject to certain terms and conditions. From the point of view of acquisition of property in Indian we can group the property in some major classifications to effectively understand the differences and distinguish them accordingly;
I Agricultural land: The title of the agricultural land can be verified from the revenue records, the sale deed or transfer documents are executed in the district concerned where the land is situated. In some cases NOC from the government or the local authority is also required. The applicability of local laws assumes importance in transactions related to the agricultural land in India. In some states there are strict restrictions on transfer of particular types of agricultural lands hence any transaction done with regard to the said land is invalid.
II Urban residential land: The acquisition of urban residential land has been simplified and any one can purchase the said land after negotiation with the owner. The ownership records of the urban residential land are vested with the landowning agency which is often the housing development bodies or the Municipalities. The record regarding the ownership is also maintained by the House tax department also. In most of the cases the sale and purchase of the urban land is allowed but in some cases there are restriction on the sale an purchase of the urban lands as well and the landowning agency does not allow any sale and purchase of the land owned by it as the holder is only a lessee subject to the terms and conditions of allotment of the said land.
III Commercial or industrial land: The acquisition of commercial land has been simplified and any one can purchase the said land after negotiation with the owner. The ownership records of the urban residential land are vested with the landowning agency which is often the industrial development bodies or the Municipalities. The record regarding the ownership is also maintained by the House tax department also. In most of the cases the sale and purchase of such land is allowed but in some cases there are restriction on the sale an purchase of the urban lands as well and the landowning agency does not allow any sale and purchase of the land owned by it as the lessee only subject to the terms and conditions of allotment of the said land. In some cases obtaining a NOC is required before the sale and purchase of such lands.
IV Built up property in from of either house or a flat: The process regarding acquisition of the built up property can be summarized in the following manner:
a. Check the title deeds with the chain of the documents after preparing a chart from the earliest to the latest which will reflect the continuous titles of the property.
b. Check documents pertaining to the usage of the property and other construction-related documents (Such as Occupation Certificate, Completion Certificate, electrical connection, water connection etc.)
c. Check with the relevant authorities about the payment of the property tax and utility bills (water, electricity, telephone, gas, maintenance charges etc)
d. Get a list of the fittings and fixtures inside the property.
e. For the properties situated in a cooperative group housing complex, specific checks regarding the share certificate, membership records etc to be done. Buyer’s Agreement /Sale Deed should contain the details of the specifics of Annual maintenance charges for installations are provided by the developer.
FOR THE PROPERTY WHICH IS STILL BE CONSTRUCTED (LAUNCHING STAGE OF PROJECT)
a. Verify about the status of the land, whether the land has not been notified as a reserved area by the state government or acquired by the government for any other purposes.(with the land revenue department )
b. Ensure that the developer has obtained all necessary approvals and permissions from the authorities for the requisite approvals, permissions and sanctions for carrying out such construction in accordance with the local laws and bye-laws. (Insist for all such documents, letters and go through them carefully)
c. Check the sanction of the project issued by the government against the said property. (A sanction letter is issued by authorities detailing the extent of construction allowed)
d. Check which features and facilities (flooring, parking, electrical connections, etc) have been included and excluded from the house’s cost.
As a law firm in Delhi we provide all the services pertaining to property acquisition services and the Indian attorneys at our Indian law firm are well versed and competent to provide all the legal services pertaining to acquisition of property in India.
Important: It is always safe to avail the services of a local specialist property agency and/or lawyer who are well-versed in the region’s language, local rules and regulations.