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What is Agriculture land and Advantage and Disadvantage of buying Agriculture Land?

The land is always a lucrative investment because it always appreciates with time and you do not need to invest more in construction. India is an agriculture economy-driven country thus we have lots of agricultural lands but every state has different norms for buying agricultural land in some states only agriculturists can purchase agricultural land like Maharashtra.

Buying agricultural land is not easy because it is always family-owned for a few generations, and after generations, lots of people become partial owners. And you also have to check the master plan about the land use and road. Also, sometimes there is an issue of clear title and legal disputes.

what is agriculture land, advantage and disadvantage of agriculture land

Agriculture land is always beneficial if new infrastructure project is coming near to the land like any highway is passing, and residential scheme, any govt scheme.

Measurement Unit for Agriculture Lands in Gvt Records

Currently, most state governments use Hectare as a measurement unit of agricultural land to make a unified model. And general trading is done in local terms vary from state to state like Bigha, Killa, Rakba, and Nali.

Who can’t buy agricultural land in India?

Across India, NRI(Non-Resident Indian) and PIO(Person of Indian Origin) cannot buy agricultural land. However, they can inherit agricultural land.

want to sell agriculture land

Restrictions for buying Agriculture SC/ST land in India

In most of the states, you can’t buy sc/st land until and unless it is not converted to non-agriculture. Only SC/ST guys can purchase the land from SC/ST people. Lots of companies or people form the company (Legal entity) and keep 1-2 directors of SC/ST and then purchase the land because clear title land availability is very less.

Mistakes to avoid while buying agricultural land

Before buying agricultural land you should be clear about your purpose of buying like only for investment purposes, farming purposes, commercial purposes,s or residential purposes.

Always try to avoid buying land through the power of attorney holder if you are looking for investment purposes because in the future you have to sell it and there is a general tendency for people to avoid buying land through the power of attorney holders because of lots of cheating has been done in past.

And always check the background of the seller and the middle person or real estate agent, and ask about references and his past transactions just to avoid any mishap in the future.

Read – What are the Benefits of Investing in Industrial Real Estate?

It is important to make sure that you have checked the land title and taken a legal opinion from your lawyer. It is always advisable you should physically visit the property and verify it and measure it because in most cases there is always an issue of boundary in agricultural land.

Always check the land in the master plan of that city so you can be aware of the land use and if there is any road passing from the land or not.

Disadvantages of buying agricultural land

There are many disadvantages when you buy agricultural land. In most cases, there is a dispute or legal issue on agricultural land. In general, people don’t understand the terminology used in agricultural lands, like what is the purpose of the land. If there is a Well on the land then you have to keep it. Sometimes there is an issue with Mandir Mafi means the land belongs to the temple. Sometimes there is a case of Gochar bhumi, a land that is specifically allotted for animals, you can not use it for general purposes. IF your land is located near Talab, pond, or river then you can not do anything on it.

want to buy agriculture land

Things to keep in mind while buying the agricultural land

It is important to keep small things in mind when buying agricultural land. Make sure you are not buying disputed land. Land should be a marketable title. If you want to use an agricultural property for commercial or residential purposes, go through the conversion process.

List of the documents to check before buying agricultural land

  • The title deed of the plot
  • Agreement of Purchase / Sale / Gift Deed
  • Check Jama Bandi / Land Mutation Record
  • Check the Circle Rate
  • Registration of the land
  • Conveyance deed/Sale deed of the land
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