Finding and registering a real estate property in India is a tough nut to crack. The process is so tedious and frustrating that many compare it to finding a good match for their daughters. Unending processes and lack of knowledge are just some of the few hurdles one faces during property search and registration. Tip of an iceberg we can call them. The problems are the same in Bangalore, one of Asia’s fastest-growing mega-cities and a much-loved real estate destination. The city attracts lakhs of enthusiastic people from the home state Karnataka and from all over India who wish to make the city their home.
The only thing that can save you a lot of time and probably money during your search for your future home’s perfect site is knowledge. Read on through the article to understand the complete land registration process for house construction in Bangalore.
1. The Initial Research
Search for locations according to choice but keep in mind a few points. Always gather information about crucial factors like availability of roads, drainage, proximity to schools, hospitals, and connectivity. Invest time in verifying the soil type in and around the area of your site. Consider getting a soil test done before buying the land. The soil test will tell about the water table and a glimpse into the structural and floor plan for your future project. Playing safe right from the beginning is a wise choice in the matter of buying a property. Always take the services of a good and experienced attorney in selecting a site and for all the processes relating to the registration.
Ask your attorney to obtain an Encumbrance Certificate from the sub-registrar to know the property’s past 25 years of ownership. An attorney will help you ensure the following:
a). Whether the site lies in a green or yellow belt. A residence can be constructed only in a yellow belt as green belts are reserved only for agricultural purposes. A green belt plot can be converted into the yellow belt if eligible by the concerned District Collector’s approval. Also, run a check if the site falls under an ecologically sensitive zone like a lake or forest. Such properties can run into legal problems with the government. According to a story posted by the Times Of India, the safe distance from lakes for construction in Bangalore is 75 meters.
Also, selecting the location wisely can save you a good amount during earth-work excavation.
b) Checking whether the title deed is in the name of the seller or if there are other parties involved. The title deed carries the name of the actual owner of the property. Check and ensure that there are no other stakeholders in the family of the seller. If any, minors must be included as stakeholders as they can raise their claims in the future. The title deed must be clear. It doesn’t only define the proper ownership but is also essential for getting financial approvals from banks and other financial bodies.
c)The property must be free from all kinds of Legal liabilities and shouldn’t face any government bodies and courts’ objections. Discuss your concerns with your legal help, and stay away from the site if such a matter pops up.
Expert tip: Industry experts suggest that one should always opt for taking a loan for buying any real estate property, even if there is no need for it. The loan amount needn’t be big. When we apply for a loan, the banks or financial institutions inspect all the aspects of the property under their robust systems. You end up with the property being double-checked for a minuscule price in the form of the interest you pay against the loan.
2. Locate the Sub-registrar office
Your advocate will locate the sub-registrar office in the area of your site’s location. The lawyer prepares the sales deed on your behalf and gets it stamped after you pay the stamp duty fee. The stamp duty is a state subject and is a percentage of the property’s total transaction value and changes according to the property’s value and the type of documents produced like gift deed, partition deed, and sales deed. The payment can be made both online and offline.
Registration of the site
After the stamping is done, next comes the site registration in the sub-registrar office. The registration process requires both the seller and the buyer to be present at the sub-registrar’s office and sign on the sales deed in the presence of two witnesses from each side. All the partaking persons must produce their original proofs of identity. A registration cost that usually equals 1% of the plot’s value is to be paid in cash or DD against which a receipt is made. The registration process completes with the verification of the original documents. Make sure to carry all the required documents and match the following checklist:-
Title Deed or allotment letter (The document must include the sketch of the site along with the location.)
Khata certificate (issued by BBMP)
Tax Determination receipt (issued by BBMP or corporation)
PAN (Applicable for properties valued more than five lakhs)
Conversion Certificate of Approval Plan
What is Khata?
Simply put, a Khata is a set of registers maintained by the Revenue department (BBMP(Bruhat Bengaluru Mahanagara Palike)). The concept of Khata is aimed at simplifying streamlining the process of collecting property tax. The BBMP maintains two types of Khatas or registers for mainly two kinds of properties.
A KHATA– An A Khata property is an entirely legal one. The term legal here signifies that all the property taxes to date have been paid and that the property doesn’t violate any government regulations. An A Khata property owner can apply for loans, water and electricity connections, and construction approvals. One should always opt for an A Khata property.
B Khata– The B Khata is the register of all the other properties maintained by the revenue department. The civic body collects taxes from these properties too. These properties might violate construction rules, or the owner may not have paid the taxes.
Though there is a provision to convert a B Khata site to an A Khata, one should always refrain from B Khata properties. The Khata system doesn’t stop buying and selling properties, and the conversion process is too hectic and involves a lot of bureaucracy.
Application For Title Change
After the application process is done, one needs to apply for changing the ownership title to their name. This is done at the City Survey and Land Records Department office. An application called the ‘Application For Mutation’ is submitted at the office with documents like a sales deed copy and an affidavit. The tax on the property is calculated after submitting the application, and the office issues a Letter of Mutation in the buyer’s name. This is the final document that seals your ownership of the property.
The Karnataka government has put up all the required procedures on its website- Kaveri, to make the registration process more accessible and curb corruption. Almost all of the processes mentioned here can be done easily with this online console. The site also provides you with all the information about the necessary steps throughout the land buying journey. That being said, one still should hire an authorized and experienced advocate as apart from making the process safer, a legal advisor can also fasten up the process to a great deal. For all such requirements and legal help, you can always rely on Constructure. We promise to take care of all your construction needs from the beginning to the end. Contact today for any kind of consultation regarding your construction dreams.