Property Purchase Precautions

Nov 6


Vinay Choubey

Vinay Choubey

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Purchasing of property / land in Urban and Rural areas has become a complicated problem as it involves multiple issues of different fields. The purchaser of land/property should be well conversant with all related Acts, Rules and Regulations which are applicable on the related land.


These Acts,Property Purchase Precautions Articles Rules and Regulations vary from area to area.  The area wise general precautions which are required to be looked into by the purchaser are described as below:

1. Purchasing of Agricultural Land in Rural Areas     • Before initiating purchasing process, the purchaser of land should obtain the certified original copies of Nakal Jamabandis, Aks Shajra Plan, Mutation and Girdawri from the concerned Patwari by paying the fee prescribed by the Govt.   The entry relating to said fee should be got made in the Roznamcha of the Patwari.  This entry would help if any fraud is detected later on at any stage.

• On obtaining the aforesaid document the purchaser should also get it verified from the concerned Patwari whether the land in question is not affected by any proceedings / notifications issued under the Land Acquisition Act, 1894. 

• The rural areas coming within the radius of 5 Kms. from any Municipal Town are also covered under the Haryana Development and Regulation of Urban Areas Act, 1975.  In such areas selling of land in pieces by sub dividing the Khewat having area of more than 1000 sq. meters is considered an offence.  Therefore, before signing any agreement with the seller of land, No Objection Certificate is required to be obtained from the concerned District Town Planner.

• The purchaser should not purchase the excess land beyond the limit prescribed under “The Haryana Ceiling on Land Holding Act, 1972”.

• After making payment of advance/token money and before execution of conveyance deed, the purchaser should give a public notice in three local and reputed newspapers to the effect that so and so land (by mentioning the particulars of Khasra Nos., their areas and names of the owners of the land) is being purchased by so and so person (name and address of the purchaser) and if any person has any objection for the said transaction, the same may be intimated in writing to the purchaser of the land within 15 days to be reckoned from the publication of said notice in the newspapers. 

2.      Purchasing of Plot from Govt. Agencies in Urban Areas• In Urban Areas of Haryana, the Haryana Urban Development Authority (HUDA) or Haryana State Industrial Development Corporation (HSIDC) or Improvement Trust or Housing Board etc. and licensed colonizers are the main agencies involved in development of residential, commercial, industrial, institutional plots/land.  These Govt. agencies allot plots/built up houses etc. as per their policies by inviting applications and thereby allotting such plots through draw of lots or through auction.  The allottee of plots have to comply with the terms and conditions prescribed in the allotment letters.

• The persons who want to purchase such property/plots originally developed and allotted by aforesaid Govt. agencies have to seek permission from the concerned authority for transfer of property.  Before making advance payment or signing  memorandum of understanding, the purchaser should get it verified from the concerned development agencies about the dues required to be paid by the seller of property and should also obtain No Encumbrance Certificate from the concerned authority. 

• After getting the plot transferred in the name of purchaser, the purchaser should get the building plan approved in his name and should get D.P.C. and Completion Certificates from the competent authority.   

3.  Purchasing of Flats from the Members of Group Housing Societies The Group Housing Societies registered under the Societies Registration Act, 1960 are governed by the Haryana Apartment Ownership Act, 1983.  Generally, Builders gets the Group Housing Scheme executed at site by taking licence under the Haryana Development and Regulation of Urban Areas Act, 1975. 

After allotment of flats and on obtaining completion certificate, it is the liability of the licensed builder to execute declaration under the Haryana Apartment Ownership Act, 1983. The purchaser should verify the genuineness of the flat allottee and should also obtain No encumbrance Certificate from the Society before making agreement for purchase of a flat.  The purchaser should verify the genuineness from the following documents:

• Validity and genuin-ness of the Licence of the Developer ;

• No encumbrance Certificate to be issued by the Developer and  President of the Society;

• Approval of Building Plans;

• Completion Certificate issued by the competent authority;

• Succession Certificate (if original allottee is not alive).

4.   Purchasing of Other Urban Property If purchaser is purchasing urban property from a private person, who is not developed by aforesaid Govt. agencies, in that case following precautions are required to be taken care off :

• It should be verified whether the property in question does not involve the violations of the Haryana Development and Regulation of Urban Areas Act, 1975, the Punjab Scheduled Roads and Controlled Areas Restriction of Unregulated Development Act, 1963 and the Haryana Municipal Act.  Before purchasing such property, No Encumbrance Certificates are required to be obtained from the concerned Civic Body and Haryana Vidyut Parsaran Nigam.

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