I am not a farmer can i buy agricultural land
Question : I am not a farmer can i buy agricultural land ?
The Answer is Yes and NO.
Fact is : In Maharashtra, only farmers can buy agricultural land. But, If one ofyour parents or grandparents of a person are a farmer, then you are also entitled to purchase. This means you need to check your family history record of properties AND locate the proof of owning a Agriculturla land ( by sibling, either of parents or Grand parents in family ) ANYWHERE in India. If you are able to provide a document to prove ownership of agricultural land elsewhere in India, you can still be considered a farmer in Maharashtra, and allowed to purchase agricultural land. The maximum area of such land you can buy is 54 acres.
Non-resident Indians (NRIs) cannot buy agricultural land, horticultural property, or farmhouses.
A guide to how to buy agricultural land in Maharashtra, process, restrictions, documents required, the cost of agriculture land in Maharashtra, and schemes
How and why investing in agricultural land can be profitable?
1, Buying Agicultural Land as and investment is a Low level of risk and high level of capital security. Investing in agriculture is having a solid asset that is almost certainly going to appreciate obver time and is very unlikely to depreciate. Remember Land is in Short supply. Also, history and past data show that agriculture has demonstrated strong capital protection and appreciation over a long period. In addition well-organized farming is a completely renewable resource that remains productive and adds to your tax free income until it is sold.
2. Agricultural Farmland is an effective inflation antidote. If you look at past history, agricultural land prices and value have generally increased much faster than inflation, thus making agricultural land the most effectivesolution for beating or controlling inflation and protecting your capital. This can be especially appealing to investors who have patience and want to protect and Increase value of thier investment.
3. Agricultural Farmland is a stable ( income tax free ) income-generating asset. Unlike other investment options such as shares, commodities and precious metals, farming also provides regular income to the investor, which allows him to make cash deposits and low-interest rates make a useful alternative to income lost on account of inflation. Although the real estate sector may not necessarily have the most appreciation, the tax free revenue is being generated on assets that are unlikely to depreciate. And you have to see the balance of capital appreciation as well as income over a period of time.
4. Agricultural Farmland investment provides very low-income fluctuations If you look at agricultural commodity prices, the prices have always increased and you will see long-term growth trend.
5. Buying Agricultural Farmland and investment Agricultural land provides much higher total returns compared to all other asset classes/ Farmland investments offer both operating and capital returns in the form of a combination of tax free Agricultural income and appreciation in asset value over period of time.
Important things to remember while buying agricultural land in Maharashtra
The list of the common documents that need to be checked before buying agricultural land in Maharashtra are given below.
7/12 Extract This includes some details like survey number, size of land, full names of owners, crops grown on land, hissa number, gat number, if there is any loan on land, etc. It can be downloaded from the website mahabhulekh.maharashtra.gov.in or obtained from the local Talathi office. When downloading it you will need district name, taluka, village name, and Gat / Sr number or owner name.
6/12 Extracts : 6/12 extracts have mutation entries for different types of rights that have been transferred to legal heirs or land buyers. It shows the details of how the land was transferred and what other rights or conditions have been added or changed. Other names for the 6/12 extract are Fer Far, Mutation extract, Hakka Patra, and D Patrak.
8-A Extract : This extract is in the form of a book that shows the details of land revenue tax paid on land, types of crops, names of owners, etc. Though, it has to be read with 6/12 and 7/12 extracts.
Soil Testing : If the purpose of buying land is to grow crops, then soil testing is very important. It tells you which cropscan to be grown in the land. Soil testing can be done by government as well as private institutions.
Reservations or Acquisitions : Reservations or acquisitions must be checked whether any part of the land has been acquired by Panchayat, Irrigation, State Government, or any other authority.
Agricultural Land Limit Categories must certify land. If required, a certificate of objection must be obtained from the Collector. (For non-farmers, seek guidance from local lawyers). The land size is based on the Land Selling Act of Maharashtra
Land Revenue Tax Receipts The Tehsildar or Officer of the Tehsil Office issues a receipt for the tax paid on the land revenue.
Village Map and Block Plan This map is needed to identify the location of land in the village. This is to calculate the actual location and location on the document.
Access roads : There must be certification by the Revenue Office. In addition, there must be a record of the approach road in register-26 of the Panchayat office.
Original Title Deeds They should be thoroughly examined by a legal adviser to ensure that the land is clear of all litigation and the title is clear.
Public Notice Notice of purchase of land should be given in at least two local newspapers to check the title of the land with the guidance of your legal advisor.
Encumbrances Bank loans, private party mortgages, government liabilities, or any such charges should be thoroughly checked before the sale deadline.
Litigation All litigation, if any, should be carefully studied before selling the land.
Cultivators Land This type of land as listed under Total Holding u / s 32-G is not permitted to be sold to the Collector or Revenue Tribunal. Therefore, the lands of all farmers should be strictly avoided.
Aadivasi Lands Aadivasi lands should not be purchased at any cost.
Inami land There are many conditions attached to this type of land. It is advised not to get involved in such lands.
Demarcation, Boundaries, and Surveys DILR and Circle Inspectors are authorized to survey the land.
Boundary Disputes These types of disputes need to be settled well before the actual commencing of the sale deed.
Claims from outsiders Any boja, isaar, power of attorney, or any claim must be settled before the sale deed.
Family disputes It should be well known and resolved before the sale deadline. All disputes over family, joint owners, and succession entries, etc., need to be resolved first.
Only an agriculturist can get agricultural land. A non- agriculturist can purchase agricultural land with the prior consent of the District Collector
Selling Agreement All of these terms and conditions must be drafted and executed by your legal advisor.
Deed of conveyance This is, after all, execution and payment of stamp duty.
Deed Registration Transportation must be formally registered with the Registrar of the Sub-Registrar Office with all stamp duty paid for legal effect.
The names of the new owners should conclude new 7/12 within six months of registration.
To make this difficult task easier for you, we have listed a few essential legal points to consider when buying agricultural land in India.
Check the title deed of agricultural land to verify ownership The title deed ( 7/12) of the land confirms the name of the seller and whether the seller has the right to sell the property. If there is more than one owner of existing agricultural land in the current title deed and the previous title deed, then, ithe documents be checked by a lawyer before registering to ensure that the owner has not given access to others through the land.
Verify the documents and sign the land sale agreement After all documents have been verified, sellers and buyers must prepare and sign a written document stating the amount of the advance payment, the balance to be paid, and the actual term of the sale. All of thsi should be supervised or prepared by a lawyer and signed by two witnesses. This is an important part of buying agricultural land. Therefore, you should be very careful and read the terms and conditions carefully before signing the agreement.
Find out the stamp duty on the land : Stamp duty is important aspect of buying real estate. Stamp duty is property transfer tax imposed by the government, and stamp duty imposed on land by the government varies from state to state. Stamp duty is a legal document that can be used in court.
Documents required for land registration ; Land registration is a document stating the transfer of property in the name of a new buyer and must be signed by both parties in the office of the Registrar. According to the India Registration Act, 1908, a deed must be registered in the office of the Sub-Registrar, and documents such as house tax receipts, past deeds, and original deed are required with two witnesses at the time of land registration.
Sale Deed/Conveyance deed of the land The Sale deed is important document that transfers ownership from the seller to the buyer. These documents contain all the required details, such as location, measurement, and boundary details.
Collect the land measurement and encumbrance certificate : This document assures the buyer that the agricultural land is free from any legal hassle or complaints. Anyone can get an incumbency certificate from the Sub-Registrar Office
Make sure land record tax receipts and bills are not pending : Before jumping into buying a property, the buyer must ensure that there are no outstanding land bills or notices. They should make sure that water, electricity, or other bills are clean and up to date.
Changing the title of agricultural land ( ferfar ) After doing sale deed and all the legal procedures and important aspects of buying agricultural land, make sure the name of the new owner of the land is included in the records( 7/12) of the village talathi / patwari office.