Looking to Buy a Farmhouse? Be Cautious about Few things!

Jun 11, 2011     Posted under: Investment

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Keep a few things in mind in case you are planning to buy a farmhouse: Check if the approvals are in place. The land should have been identified for acquisition under the government norms. Do a thorough due diligence of the khatouni reports (the revenue records of the government) and go through a bona fide seller. You must pick up a credible partner to facilitate the transaction; choose the zone carefully, ensuring that there is some connectivity and that there is an approach road to your property. Check how close it is to the airport, the width of the road and the general socio-economic system. Find out if the plot of land is located ahead of villages and try and ensure you do not have to cross too many villages to reach it. The area in which your property is located should have electricity connection and the water table should not be low. The Delhi Land Reforms Act, 1954 restricts the minimum land holding to eight standard acres whereby a land owner cannot transfer his/her land if s/he shall be left with less than eight standard acres after the transfer. This has been done to prevent fragmentation of agricultural land and to ensure that reasonably large, contiguous pieces of farmland are left as open and green spaces. Here the responsibility is with the buyer and not the owner to verify all these clauses and check for ground realities to protect his/her interest and investment.


  • Talk to a planning expert
  • Visit approved zones with the expert
  • Shortlist villages within which to buy land
  • Choose the best fit with the desired location and budget
  • Shortlist three before zeroing on the final one
  • Pay advance to the seller, but not more than 10% of the cost of the property
  • Collect coped of ownership records
  • Undertake due diligence with revenue records
  • Receive stamped copies from government records (the complete chain of last three owners)
  • Receive all NOCs
  • Complete financial transactions
  • Get the registration of sale done
  • Get the mutation of land under revenue records done
  • Apply for permissions and building sanction plans to construct farmhouse

NitiN Kumar Jain

Nitin works in an IT MNC professionally but blogs and owns NKJ Live. He is also the co-owner of a professional start-up ARGHAM BYTES

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