Buying Agricultural Land in Karnataka: A Comprehensive Guide

Published on:
May 22, 2023

Are you considering investing in agricultural land in Karnataka? It can be an exciting opportunity for individuals who are passionate about farming or looking to diversify their investments. However, it's important to approach the process with caution and care to avoid costly mistakes. From ensuring proper due diligence to understanding the land use policy, there are several critical factors to keep in mind to make a wise decision. But don't worry, we've got you covered! 

In this article, we'll dive into how to get agricultural land, the documents required, policies and regulations in place, and common mistakes to avoid while buying agricultural land in Karnataka. Also, can non-agriculturists buy land in Karnataka? So, let’s dive in. 

Things to Consider When Buying Agricultural Land in Karnataka

If you are considering buying agricultural land in Karnataka, there are several important factors to keep in mind. Here are some things to consider:

1. Land Use:

Before purchasing agricultural land, it is important to confirm that the land is designated for agricultural use. Karnataka has strict land use regulations, and land classified as agricultural cannot be used for non-agricultural purposes without obtaining necessary approvals.

2. Soil Quality:

The soil quality of the land is an important consideration for agricultural purposes. Karnataka has a variety of soil types, with red soil being the most common. It is important to have the soil tested to determine its fertility and suitability for the crops you plan to grow.

3. Water Availability:

The availability of water for irrigation is crucial for agriculture. You need to consider whether the land has a water source like a well, borewell, or canal. Check the water table levels in the area, rainfall pattern, and ensure that there is adequate access to the water supply.

4. Location:

The location of the land is important. The proximity of the land to the market, transportation facilities, and availability of labor are some of the factors that could affect the profitability of your agriculture venture.

5. Legal Status:

Before purchasing agricultural land, it is essential to check the legal status of the land. Check for any existing liens, disputes, or encumbrances, and ensure that the land has clear titles.

6. Permits and Regulations:

Check with local authorities about any permits or regulations required for agricultural activities in the area, such as obtaining licenses for agricultural use, obtaining environmental clearances, etc.

7. Price:

It is important to compare the prices of similar agricultural lands in the area to ensure that you are paying a fair price for the land. However, do not compromise on the quality of the land just to get a cheaper price.

8. Accessibility:

The accessibility of the land is an important factor to consider, especially if you plan to transport your products to the market. Ensure that the land is easily accessible by road, and there are no restrictions on the transportation of agricultural produce.

9. Infrastructure:

Check if there is adequate infrastructure in the area, such as electricity, irrigation facilities, and storage facilities, to support your agricultural activities.

10. Title Deed:

The title deed ensures the ownership of the land. Ensure that the seller has a clear title to the land and that there are no legal disputes or encumbrances on the land. You can obtain a copy of the title deed from the sub-registrar's office.

11. Agreement of Sale:

An agreement of sale outlines the terms and conditions of the sale, including the price, payment schedule, and other details. It is important to have a legally binding agreement of sale in place to avoid any misunderstandings in the future.

12. Registration of Land:

Registration of the land is a legal requirement, and it ensures that the transaction is recorded in the government's records. The registration fee in Karnataka is 1% of the transaction value.

13. Tax Receipts and Bills:

Ensure that the seller has paid all the necessary property taxes, water bills, and electricity bills. Obtain copies of these receipts and bills to verify that there are no outstanding dues.

It is always advisable to engage a lawyer to help you with the legal formalities involved in purchasing agricultural land. The lawyer can guide you through the process, review the legal documents, and ensure that all the necessary legal formalities are completed.

Agricultural Land Policy in Karnataka

Karnataka has a well-defined agricultural land policy aimed at promoting sustainable agriculture and ensuring food security in the state. Here are some of the key features of the agricultural land policy in Karnataka:

1. Agricultural Land Use:

Karnataka has a strict land use policy, and agricultural land can only be used for agricultural purposes. The state government encourages the use of scientific and sustainable agricultural practices, such as organic farming, to promote soil health and reduce the use of chemicals.

2. Land Reforms:

The government of Karnataka has implemented various land reform measures to promote land redistribution, provide land to landless farmers, and prevent land grabbing. The government also provides financial and technical assistance to small and marginal farmers to enhance their productivity and income.

3. Irrigation:

The state government has made significant investments in irrigation infrastructure to ensure the availability of water for agriculture. The government provides subsidies to farmers for the installation of drip irrigation systems and other water-saving technologies.

4. Price Support:

The government of Karnataka provides minimum support prices for various agricultural commodities to ensure that farmers get a fair price for their produce. The government also procures grains and other commodities from farmers at a fair price to stabilize market prices.

5. Crop Insurance:

The state government has implemented crop insurance schemes to protect farmers from the financial impact of crop failure due to natural calamities, pests, and diseases.

6. Sustainable Agriculture:

The government of Karnataka encourages the adoption of sustainable agricultural practices, such as conservation farming, integrated pest management, and soil health management. The government provides technical and financial assistance to farmers for the adoption of these practices.

7. Land Conservation:

The state government has implemented various measures to conserve the environment and protect natural resources. The government encourages farmers to adopt agroforestry, afforestation, and other land conservation practices.

Documents Required for Buying Agricultural Land in Karnataka 

Here are some of the key documents that you may need when buying agricultural land in Karnataka:

1. Title Deed:

The title deed ensures that the seller has a clear title to the land and that there are no legal disputes or encumbrances on the land. You can obtain a copy of the title deed from the sub-registrar's office.

2. Sale Agreement:

An agreement of sale outlines the terms and conditions of the sale, including the price, payment schedule, and other details. It is important to have a legally binding agreement of sale in place to avoid any misunderstandings in the future.

3. Khata Certificate:

A Khata Certificate ensures the ownership of a property and records the details of the property in municipal records. This certificate is essential to obtain a trade license and apply for building permissions.

4. Survey Records:

Survey records of the land, including the survey number, village map, and land records, may be required to verify the boundaries of the land and the ownership details.

5. Encumbrance Certificate:

An encumbrance certificate verifies that a property is not subject to any monetary or legal obligations or liabilities. This certificate may be required to verify that the seller has not mortgaged the property or used it as collateral for a loan.

6. Tax Receipts and Bills:

Ensure that the seller has paid all the necessary property taxes, water bills, and electricity bills. Obtain copies of these receipts and bills to verify that there are no outstanding dues.

7. Aadhar Card:

Aadhar card is a unique identification document issued by the government of India. It may be required to verify the identity of the buyer and the seller.

8. Property Card:

A property card is a document that contains details of the property, including the survey number, location, and size. It is issued by the revenue department and is used to verify the ownership of the land.

9. PAN Card:

The PAN (Permanent Account Number) card is an exclusive identification document that the Income Tax Department issues. It may be required to verify the income and tax status of the buyer.

10. NOC (No Objection Certificate):

If the land is located in a special economic zone, forest area, or other restricted zones, a No Objection Certificate (NOC) from the concerned authorities may be required to purchase the land.

11. Power of Attorney (POA):

If the buyer is unable to be present physically to complete the legal formalities, a Power of Attorney (POA) document may be required to authorize a representative to act on their behalf.

12. Invoice or Demand Draft (DD) for Full Stamp Duty:

Stamp duty is a tax that is levied by the state government on the sale of the property. The invoice or DD for full stamp duty is proof of payment of the stamp duty for the purchase of agricultural land.

13. Proof of Payment of Transfer Duty:

Transfer duty is a fee that is payable to the government for the transfer of ownership of the property. The proof of payment of the transfer duty is an important document that verifies that the transfer duty has been paid.

14. Proof of Identity of both Buyer and Seller:

It is mandatory to provide proof of identity of both the buyer and the seller. Documents such as Aadhar Card, PAN Card, Passport, or Voter ID can be used as proof of identity.

15. Registration Fee and User Charges:

A registration fee and user charges are payable to the government for registering the sale deed of agricultural land. The proof of payment of these fees must be submitted along with other documents.

16. Tax Receipts:

The tax receipts, including property tax receipts and land revenue tax receipts, need to be obtained and submitted to the concerned authorities to verify that all taxes have been paid.

17. Address Proof:

Documents such as Aadhar Card, Voter ID, Passport, or Driving License can be used as proof of address.

Mistakes to Avoid When Buying Agricultural Land in Karnataka

Buying agricultural land is a significant investment, and it is important to approach the process with caution and care. Here are some common mistakes to avoid while buying agricultural land:

1. Not Doing Proper Due Diligence:

It is important to conduct thorough due diligence on the land you are planning to buy. This includes verifying the title deeds, checking for encumbrances, surveying the land, and obtaining the necessary permissions and approvals.

2. Not Consulting with Experts:

Buying agricultural land involves various legal, financial, and technical aspects. It is important to consult with experts such as lawyers, real estate agents, surveyors, and agronomists before making a decision.

3. Ignoring Location and Accessibility:

The location of the land and its accessibility to markets, transportation, and other amenities are critical factors that can impact the value and profitability of the land.

4. Underestimating the Cost:

Apart from the purchase price of the land, there are various other costs involved such as stamp duty, registration fees, and legal fees. It is important to factor in all these costs before making a decision.

5. Not Understanding the Land Use Policy:

Agricultural land in Karnataka is subject to various land use policies and regulations. It is important to understand these policies and regulations before investing in the land.

6. Not Checking for Water Availability:

The availability of water is critical for agricultural activities. It is important to check for the availability of water sources such as borewells, rivers, or lakes before investing in agricultural land.

Can Non-agriculturists Buy Land in Karnataka?

If you are wondering how to buy agricultural land in Karnataka by non-agriculturist and if it can be done, the answer is ‘yes’, non-agriculturists can buy agricultural land in Karnataka but with certain restrictions. As per the Karnataka Land Reforms Act, non-agriculturists can buy agricultural land in Karnataka only for specific purposes, such as:

  • Setting up an industry for the production of goods that are essential for agriculture, such as fertilizers, pesticides, or agricultural machinery.
  • Setting up a dairy, poultry, or fisheries farm.
  • Constructing a farm or farmhouse for personal use.

However, non-agriculturists are not allowed to buy agricultural land for any other purposes. They also need to obtain prior permission from the Deputy Commissioner of the district where the land is located before making the purchase.

DC Permission to Buy Agricultural Land in Karnataka

As per the Karnataka Land Reforms Act, non-agriculturists who wish to buy agricultural land in Karnataka need to obtain prior permission from the Deputy Commissioner (DC) of the district where the land is located. The DC's office is responsible for verifying the purpose for which the land is being purchased and ensuring that the transaction complies with the relevant laws and regulations.

To obtain DC permission, the buyer needs to submit an application along with the required documents to the DC's office. The application should include details such as the purpose for which the land is being purchased, the extent of the land, and the proposed purchase price. The buyer may also be required to pay a fee for processing the application.

Final Thoughts 

Investing in agricultural land in Karnataka can be a lucrative opportunity, but it requires careful consideration and due diligence. Understanding the legal, financial, and technical aspects of purchasing agricultural land is crucial to making a wise investment decision. From checking for water availability to ensuring proper documentation, it's important to take all the necessary steps to avoid costly mistakes.

Just to recap, in this guide, we covered points such as how to get agricultural land in Karnataka, can non-agriculturists buy land in Karnataka, DC permission to buy agricultural land in Karnataka, and how to buy agricultural land in Karnataka by non-agriculturist.

FAQs - How to Buy Agricultural Land in Karnataka

1. Can anybody buy agricultural land in Karnataka?

No, only agriculturists are eligible to purchase agricultural land in Karnataka. However, non-agriculturists can purchase agricultural land in Karnataka subject to certain conditions, such as obtaining prior permission from the Deputy Commissioner of the district where the land is located and only for specific purposes.

2. What is the minimum agricultural land to buy in Karnataka?

The Karnataka government has ordered that no agricultural land measuring less than 5 guntas, or 5,445 sq ft, can get a survey number. This decision was made to prevent the fragmentation of agricultural land into smaller parcels, which can lead to difficulties in cultivation and affect agricultural productivity.

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