The revival of the realty sector has once again brought cheers to investors. However, the recovery has also made unauthorised land brokers make a smooth comeback into this thriving business.

Land brokers are back to cash in on the new sentiments prevailing in the market. So, buying and selling plots should be done in a very cautious manner. Beware of being duped by unscrupulous brokers and mediators.

The boom witnessed in property two years ago went through a rigorous corrective phase and has now reached a fair level. The land mafia and the real estate brokers have jacked up prices in most parts of Kozhikode city as elsewhere in the State.

Hundreds of people who had earlier invested during the boom period in 2007-end and early-2008 on the advice of brokers had lost a substantial portion of their money. Many of them had invested in land after selling gold and shares in their possession.

On the other hand, many who have invested in flats and villas of reputable builders, instead of buying plots, have not faced such pitfalls. Several things have to be factored in before buying a plot. As far as possible, avoid utilising the services of brokers in striking a deal. Numerous instances have been quoted of clients being deceived. Seek professional help from firms such as the Bangalore-based Real Estate Bank India (REBI) that has a branch in the city.

Besides, the buyer and the seller have to pay commission to the land broker. The commission rate for selling a piece of land is 2.5 per cent and buying, 1.25 per cent. But more will be demanded.

Builders say that nearly 75 per cent of land transactions usually take place through brokers. So, the pertinent question is how to avoid their machinations? One of the options is to advertise in the media so as to get a one-on-one interaction between the seller and buyer. There are Internet sites offering help as well.

Do not get intimidated by fraudulent brokers who hold out as a threat the clauses of any agreement they have with the buyer or the seller. One can take up the matter with the police.

Always check the original title deed to get a clear idea of the plot. Verify the back documents of the property at least for 13 years. Get an encumbrance certificate from the registrar’s office. The land tax receipt issued from the village office should be checked. Another is the possession certificate.

Make sure that the seller has been remitting the property tax at the Corporation office if the plot has a building. Check the occupancy certificate. Get a certificate from an attorney based on the title deeds and tax receipts.

The buyer should also verify whether the seller is governed by the Hindu Succession Law or the Muslim Succession Law. Another aspect to be checked is whether minors have claim to the property. In the case of the seller, he/she has to get a no-objection certificate from the tahsildar and get permission from the court to sell the property. A minor after attaining 18 years of age can claim the property he/she has inherited within three years.

Deceitful brokers can land buyers in trouble by providing forged title deeds. They usually make fake title deeds for non-existent land in connivance with officials at the sub-registrar’s offices. A builder nearly lost Rs.1 crore after buying 30 cents of unclaimed land in Kozhikode city. The only way not to fall prey to such crooked methods adopted by land brokers is apply for a no-attachment certificate at the office of the tahsildhar. The prospective buyer can get this certificate within 20 days.

If one is planning to buy a constructed house, then go in for more details. The buyer should check the original plan of the house submitted by the owner to the Corporation. Check if the seller has deviated from the original plan and if he had secured a completion certificate and possession certificate.

The government has planned to bring in legislation to curtail unethical land deals in the State. The new law will give an idea to the buyer of the value of land at a particular place. Proposals for fair value have been made in 117 villages in Kozhikode district. There are 55 villages in Kozhikode taluk. The three villages in the limits of Kozhikode city are Nagaram, Kacheri and Kasaba.

Recently, the Registration Department has come up with a notification for a one-time settlement to get exemption from legal proceedings if anyone has deliberately undervalued land during registration. The facility will be available till March 2010.

News Published Under:  The Hindu