Do you get excited by the thought of investing in nature?
Are you interested to own a
Is it a good investment to buy a farmhouse near
As a commodity land has various features and uses. However, if you own a plot of land, it brings a huge amount of background checks and paperwork. Legal formalities might be frightening for some people, but once you have successfully finished these, then it might be extremely fulfilling and worthwhile to own farmland.
Here is a list of 5 major mistakes to avoid while investing in Managed Farmland. Generally, first-time landowners make these kinds of mistakes which may be unsafe for them. We will make you aware that how can you avoid such mistakes.
Neglecting the Necessity of Un-disputed Land Ownership
It is the primary compliance to check the ownership of the farmland that you must do before purchasing it. If you will not check and confirm the clear and marketable ownership of the land then it would lead you to legal complications.
It is extremely crucial for you to make sure that there are no disputes associated with the area and ownership of the land. The reason is that it would result in a delay for you to acquire the land. You must do the verification of the ownership of the land date back to a minimum of 40 years from the date of purchase.
The verification of the ownership of the farmland is also inclusive of the careful perusal of mother deed documents. The team of Urban Farmers efficiently carries out all such verification procedures. These also include existing claims, disputes, and the classification of the land.
Considering the laws of one state also followed in another state
Agriculture in India is a subject of the state. It signifies that there are different laws in different states. If you are not aware of the agricultural laws of the state in which you are going to purchase the managed farmland, it may lead you to face different kinds of complications. It is dependent on the state in which your farmland is situated.
Urban Farmers take the responsibility of following State laws that are in force. They strive hard to gather all the necessary documents related to farmland. They also confirm a clear owner for the land.
The government lawyers and agents do the verification of the documents and the records of historical land use for confirming authenticity. Apart from this, the verification of the land area and the boundary is also done by physical verification & government survey records.
Given below you can find the list of the basic documentation which is necessary when you are doing land due diligence:
● Ownership documents
● Encumbrance certificate
● RTC- Record of Rights or Pahani
● Mutation Extract
● Family Tree History
● Patta Book
● Survey documents which are inclusive of Akarband Extract, Hissa Tippani Book Extract, Survey Sketch, Phodi Extract, Hudbust Register Extract, Atlas & Village Map
● Conveyance Deeds
● Khata Certificate
● Grant Certificates
Failure to conduct a site review & proper physical land survey
There is much more to review than the history of the land. If you will not do the verification of the land physically, it may result in a false evaluation of the appropriateness of the land for agriculture.
If you are looking for managed farmland for sale in Bangalore, then just verifying the documents would not be sufficient. It is also quite necessary to do the verification of the land and its boundaries physically.
Urban Farmers conduct physical verification of the land with the support of government officials and surveyors to facilitate people with maximum transparency regarding the legal status of the land. It also assists them in examining the nature and the boundaries of the farmland.
Unawareness about the seller
Investigating the origin of the property is one of the major reasons behind extensive document verification. Investigating ownership should always begin with examining the earliest recorded document. For example, if the agricultural plot is available for sale, and if you are aware of the history of the landowners, it would tell you about the history of the land use itself.
You must perform these activities because you would never desire to buy the apparently fertile land only to find out that it is under dispute or located in an environmentally sensitive zone. We acquire the land after considering the historic use of its account.
A Short-term vision & getting failed in setting an objective
There are numerous people for whom it is just about connecting with nature and experiencing farm life to invest in agricultural land. However, it is extremely crucial for you to keep in mind that it is still an investment that you are going to make in the future. You must remember that you are going to invest in sustainable farming, growing your assets, and investing in the plant & the community.
Most agricultural lovers often take goal setting very lightly. But, if you will not set goals then it may drive you to uncertainty and disappointment when you will not get your desired returns. When you are going to invest in a farmland setting your objectives is highly dependent on the type of your desired ROI.