6 Mistakes to Avoid when Investing in Farmland in India

Here are the top 5 mistakes to avoid when buying farmland:

Neglecting the significance of undisputed land titles:

Before purchasing farmland, it's essential to verify the land's title, which is a fundamental compliance. Legal issues can arise if the clear and marketable title to the land isn't verified. Disputes over the title and area of land can lead to delays in acquisition and cause significant stress. Title verification should date back a minimum of 40 years from the date of purchase. Detailed examination of mother deed documents is another vital step in the title verification process. Some other documents that need to be verified include:

Encumbrance CertificateRTC – Record of Rights or PahaniMutation ExtractFamily Tree HistoryPatta BookSurvey Documents including survey sketch, Akarband extract, Hissa Tippani book extract, Tippani, Phodi extract, Hudbust Register extract, atlas, and village map.Conveyance DeedsKhata CertificateGrant Certificates

Note: The above list is not exhaustive, and the land may require additional verification documents. Please consult a legal team for better understanding.

Presuming a state's law applies to all other states:

Agricultural and farmland laws vary from state to state. For instance, prior to recent modifications, those without an agricultural background were not permitted to own agricultural land in Karnataka. Therefore, it's essential to understand the land laws of the state where you intend to purchase farmland. Also, know the ceiling limit on the number of lands that can be purchased by an individual.

Failure to conduct a proper land survey:

Merely checking land details and boundaries is not sufficient when purchasing land. A detailed physical land survey is essential to determine the suitability of the land for agriculture or gardening. You should examine the soil's state and quality, ensuring it is well-drained, rich in minerals, and organic. Additionally, assess the connectivity of the land via road and mobile. Skimping on this step when considering purchasing farmland is not advisable.

Failure to know the seller:

The earliest document that was ever kept should always be examined to trace ownership. Learning about the history of the landowners can reveal information about the land's use history. It's crucial to know whom you are buying from, as this may help resolve any land disputes in the future.

Failure to set a proper objective:

Before purchasing agricultural land, it's essential to set clear objectives. Determine whether you want to keep the land for investment purposes, as a holiday home/retirement home for leisure and recreational activities, or if you want to pursue farming as a hobby, second occupation, or retirement profession. Your goal-setting should align with the expected return on investment (ROI). While a hobby or retirement profession may not yield significant ROI, thoughtful investment in agroforestry can generate good long-term returns.

Not exploring FarmlandBazaar.com:

Lastly, explore India's first and only one-of-a-kind online marketplace, Farmland Bazaar, to find the best properties in your region at the best prices. Farmland Bazaar not only filters the best properties for you but also allows you to compare them in one place without hassle. You can compare properties, amenities, and locations to make an informed decision.