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Date:05/05/2007 URL:
http://www.thehindu.com/thehindu/pp/2007/05/05/stories/2007050500200700.htm
Back Property Plus Bangalore Chennai Hyderabad

Kochi Thiruvananthapuram

Precautions before land purchase

With buyers given false documents it has become imperative to examine titles and inspect
properties, writes C.H. GOPINATHA RAO
Photo: S.Thanthoni

SCRUTINY: Careful examination of documents mandatory.

Construction was about to start on a plot at Velachery, when a retired Government employee
stepped in and claimed that he was the owner of the land. He was agitated and wanted to know
who had authorised the construction. His documents showed that he had bought the property
about 10 years ago. The new owner too had documents in his possession. It was soon found that
a broker, who arranged the sale with a forged document, cheated the new owner.
Such cases where the buyers are furnished with false documents or shown wrong properties,
especially vacant plots, are on the rise. Therefore, , the property buyer should inspect the
properties considered for purchase and thoroughly examine the sale deed in favour of the seller
who is the present owner and prior link sale deeds tracing the ownership of the property for a
period of at least 30 years. And also the conversion/alienation order from competent authority
for conversion of agricultural land for residential purpose, encumbrance certificate for 30 years
are other important documents.
Certified copies
When copies of the documents are given for perusal, the buyer need rely only on them, but
instead can apply for certified copies too. The certified copies of the back documents should also
be obtained.
The copies of the sale deeds are preserved in the Sub-Registrar's office in Book One and are
given to anyone on application after paying a prescribed fee.
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Power of attorney is a document in which the principal grants authority to an agent to act on his
behalf. In real estate transactions, the power is limited to the sale of property in Tamil Nadu. If
power is given without receiving any consideration, the stamp duty payable is Rs.100/. If any
consideration is received by the owner a sum equivalent to 4 per cent of the value of the
consideration received is to be paid as stamp duty.
Nowadays promoters pay part or full consideration to the owners of the property and get the
power executed in their favour and transfer the undivided share of the land to the prospective
buyers of flats on behalf of the owners of the properties. Those dealing in land also get the power
and transfer the title deed of the properties in favour of the prospective buyers.
If the owner of the property who had executed the power dies and the power is no longer valid,
certified copy of the power executed is preserved in the Sub-Registrar's office in Book 4 and is
issued only to the parties, namely, the executor and the person in whose name power is
executed. Hence it is necessary to verify whether the owner is alive and if alive, the genuineness
of the power executed.
Wrong identification
If the property is a vacant agricultural land and not earmarked by proper boundaries, it is difficult
to identify it. There are instances of wrong identification where banks have advanced loan and
they raise it late when they decide to auction the property to recover the dues.
To avoid these hassles, the prospective buyer should approach the Village Administrative Officer
and utilise his services in identifying the land boundaries, extent and the ownership details.
The following land records are prepared and made over to the District Revenue Administration
for maintenance.
1) Village map, 2) Field measurement book, 3) Permanent settlement register or fair adangal.
Adangal is a book containing the accounts of a whole village.
Chitta is an account of particulars for land or cash, a rough draft.
Patta is the permanent land registering extract.
The Tamil Nadu Survey and Boundaries Act 1923 provides for maintenance of Survey marks.
Every registered holder is bound to maintain renew and repair all survey marks on the boundaries
of his holding.
Field measurement book has the details such as the name of the street, survey numbers, village
number, taluk, division, block number, shape, measurement of the boundaries, and diagonals. If it
is an agricultural land, the nature of land like punjai (wet land) or nanjai is indicated.
In addition, the buyer should make detailed enquiries from the neighbours of the site to get more
information.
The zone use prescribed by the CMDA in its master plan should be referred and ensured that it
conforms to the use for which the land is to be purchased. There are pockets of land where no
building can be erected.
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If the seller intends to sell part of land appurtenant to the house, the subdivision should be
approvable.
The subdivision should not result in violation of the development control rules.
It is quite common that even unapproved house sites are being sold and the buyers are not able
to get approval for construction of buildings. The Government discourages the purchase of
unapproved plots. Before purchasing an immovable property, it is safe to verify the documents,
inspect the site, make enquiries from the neighbours and identify the correct property.
The officers of the various departments of the Government can be approached for this purpose.
The author is former National President, Institution of Valuers.
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