Things you need to keep in mind before buying Gram Panchayat Land

Despite All the benefits offered by community living, property buyers still like the idea of having an independent home on a parcel of land that they call their own. As the cities are saturated, this has become nearly impossible in cities. So, most buyers turn to the outskirts of the cities to fulfill their desire to build large and spacious homes. A scarcity of land in cities, rising prices, and prospects often motivate buyers to invest in gram panchayat land. However, such investment requires converting the agricultural land into non-agricultural land by paying a nominal conversion fee to the government. This article will illustrate everything you need to know about Gram Panchayat land. 

What is Gram Panchayat land? 

Urban areas fall under the ambit of municipal bodies, and rural areas are governed by the gram sabhas or the gram panchayats. Although these bodies existed before independence, they were provided constitutional validity during the 1990s. The majority of the development in these areas happened after this.

However, since land in rural India is majorly agricultural land, using it for housing projects is not allowed unless due process is followed to change the land use. Depending on the land’s location, the collector or the district magistrate is authorized to grant leave for this conversion. In Delhi, however, all gram sabha land belongs to the Delhi Development Authority (DDA).

Only after submitting all ownership-related documents (List provided below) and payment of the requisite conversion charges would the land become legally allowed for residential use. Earlier, Gram Panchayats only had the power to lease the land within their jurisdiction for agricultural and associated activities. However, through several judgments, various courts in India have established that gram panchayat land can be sold for construction purposes.

Essential documents required for buying a gram panchayat land are:

• Sale deed
• Commencement certificate
• Building approval plan
• Completion certificate
• Conversion certificate
• Power of attorney (POA)
• Khata certificate and khata extract
• Encumbrance certificate
• Mother deed
• Betterment charges receipt
• The latest tax-paid receipt
• Occupancy certificate

Here are a few quick tips to consider before you purchase Gram Panchayat Land:

1. Make sure that conversion of agricultural land into residential property accounts for transfer costs. In general, the registration fee is around 5-6%.

2. If the property is not located outside the city’s suburbs, you have to respect the rules & instructions for the panchayat layout.

3. Make sure to leave open 1/3rd of the area. Check for clarity with the town or Gram Panchayat. There are waivers available under some circumstances.

4. Loans for Gram Panchayat land are well-known to the housing loan companies, finance company & cooperative banks. You should try to contact the financial institution to get more information regarding the loan and how to avail of the loan for a gram of panchayat property.

5. Gram panchayat lands generally are not too costly. Make sure the proper documentation and ID records are available to ensure a smooth transaction.

Pros of investing in Gram Panchayat land

Following are a few advantages of buying Gram panchayat or Gram Sabha land: 

1. During re-sale, the opportunity of earning a profit is higher, as the capital appreciation is generally higher in such properties, unlike the tightly situated markets in the city.

2. The cost of living is also significantly lower in gram sabha areas, as you will likely spend less on groceries, travel, & other entertainment. 

3. Gram panchayat lands are way cheaper to purchase than city land. Thus they are relatively more cost-effective. 

4. You feel closer to nature in greener, pollution-free, and peaceful areas than anything that comes within the city limits. 

Cons of buying a Gram Panchayat land

Following are a few advantages of buying Gram panchayat or Gram Sabha land: 

1. Investing in a gram panchayat land can be paralleled by low infrastructural development. 

2. You might have to sacrifice the availability of several amenities that generally come with land within the city limits. 

3. Electricity, water supply, and improper sewerage system are a few common issues you can face. 

4. Connectivity may also be an issue, especially during the months of July-September. 

Is it not safe to buy a gram panchayat land?

Experts believe investing in Gram Panchayat land is safe, provided the land has been converted, following due process. However, while buying a gram panchayat land, the buyer must verify the authority’s name that comes under the area’s jurisdiction. In various instances, it has been reported that the gram panchayat lacks the authority to convert land for residential use.

In these cases, the buyer must approach the Directorate of Planning and Town Welfare (DOPTW). In addition to the authority, the buyer should also check and verify the land use details to ensure that the given land does not fall under the reserved category.

Lastly!

While Gram Panchayat land is ideal for buyers seeking a serene lifestyle with a limited budget, you should also remember the inherent drawbacks before finalizing any deal. Remember to have the necessary paperwork in place to have a smooth transaction. Gram panchayat land is generally more affordable than plots in cities or towns. Buyers enjoy a relatively peaceful life at a lower cost of living. We hope that now you’re aware of everything you need to know about buying a gram panchayat land. 

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.