4 Important Things/Departments one needs to

understand regarding any real estate transaction

Wednesday, 6 May 2020 1:37 PM

You got a solicitation for buying a land parcel in a high-growth potential area in the city with excellent
developments happening all round that area. The price is also attractive and within your budget.

Before, you sign on the dotted line and part with your money, ensure that Legal Scrutiny Report (LSR)
place with a clear-cut and un-conditional title opinion.

This post seeks to provide you with relevant information to look for in the LSR with respect to various
aspects

REVENUE DEPT RELATED

- Government Grants viz., Inam Lands, Assigned Lands, ULC Retainable/Surplus Lands

Post-Independence, Governments both at the Central and State levels have undertaken various Land
reforms from time to time.

Some of these land reforms tried to

A) Abolish Intermediaries from British Era viz., Zamindars, Inamdars, Jagirdars etc,
B) Ceilings on Land Holdings of the original land owners

Inams Abolition Act,1955 applies to Telangana area of State of Andhra Pradesh. It is made applicable
Inams as defined in Section 2(1)(c) of the Act. The Act seeks to abolish all Inams besides providing for
registration of certain categories of holders as occupants of the land by the Inams Tribunal/Revenue
Divisional Officer (RDO), granting them Occupancy Rights Certificate (ORC).

The Urban Land (Ceiling and Regulation) Act was enacted in India in 1976 with a view to curbing land p
increases and promoting low-income housing through socialisation of urban land. The law tried to limit
size of the plot of land one can have in the cities. This act was later on repealed in 1999 at Central leve
at State Level in 2008. However, this flip-flop policy of the government gave arise to enormous amoun
litigations even till date.

In another set of initiatives meant to boost social welfare and prevent exploitation, legislators across In
granted land to members of scheduled castes and tribes. Most of these grants came with restrictions
the ability of the grantee to resell the land. There was often a minimum holding period before a resale w
be allowed, and there were requirements for government permission prior to any future transfers.

Keywords one need to be aware: Pahani’s, Tippons, Sethwars, Pattedar Passbooks, ORC Proceeding
ULC Proceedings

LOCAL ADMINISTRATIVE BODY’S - MASTER PLAN RELATED

- Residential/Commercial/Industrial/ Mixed-Use Zoning, Road extensions, Bio-Conservation Areas, Wa
Bodies (FTL, NALA)
government permission prior to any future transfers.

Keywords one need to be aware: Pahani’s, Tippons, Sethwars, Pattedar Passbooks, ORC
Proceedings, ULC Proceedings

LOCAL ADMINISTRATIVE BODY’S - MASTER PLAN RELATED

- Residential/Commercial/Industrial/ Mixed-Use Zoning, Road extensions, Bio-Conservation
Areas, Water Bodies (FTL, NALA)

Here one needs to be aware of the zoning guidelines set out by the city planners.
Some famous Government Circulars in this regard are G.O. MS No. 470, G.O. MS No. 111.
Also, to curb encroachments of water bodies by unscrupulous real-estate developers,
stringent guidelines with respect to water body Buffer Zone is in place now-a-days with
respect to lakes, culverts, nalas etc.,
Further, due to the ongoing expansion of urban agglomerations, the local bodies come with
various infrastructure developments viz., road expansion / widening, additional roads getting
planned for future etc.,

Keywords that one need to be aware of: CITY MASTERPLAN, Land Use Certificate, NOC
from Irrigation Dept reg. FTL

ENCUMBRANCES - REGISTRATION DEPT

Multiple Registrations, Mortgage

Multiple Registrations often used to take place by creating fake identities of the owners by
un-scrupulous people. This has come down after the computerisation of land records and
installing Bio-Metric authorisations during the registrations.

Further, some people used to dupe the Bank authorities by registering the mortgaged land
with the Bank to third parties as the Banks weren’t mandatorily doing the registration for the
Mortgage of Title Deeds.

Keywords that one need to be aware of: Certified EC, Prohibited Order Book

JUDICIARY RELATED
- Property Attachments via civil / commercial disputes, Partition Suits, Un-registered Sale
Agreements

One needs to ascertain the family tree of seller especially if the property being bought is an
ancestrally acquired property. If the seller is a company, proper board resolutions need to be
checked for.

Sometimes, there could attachment suits on the property being sold by third parties due to
various reasons. This can revealed through a proper search by a lawyer.

Keywords that one need to be aware of: Legal Heir Certificate, relevant Court Case-Registers

However you choose to invest, make sure you understand your purchase in the full context
of Indian property law. If you invest on your own, hire the best attorney you can find to pore
over the papers. Once you’ve paid heed to the principle of caveat emptor and feel confident
about all the other aspects of your investment, then—and only then—it’s time to pick up that
pen and sign.
4 Important things that one should be aware of while investing in Property Transactions.