House on agri land .

Q: I have a land registered in my name . I also got it's mutation (dakhil kharij )done . Area is 2250 Sq Ft . I want to construct a house on it . The said land does not comes under authority . It is under village / panchayat jurisdiction . I have 02 doubts .
01 - Do i need to secure any legal approval before starting the construction ? Like conversion to 143
02 - Can i get a house loan from bank as title is clear ?

Amit,

21st March 2016

Legal in Lucknow

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Replies (2)

Hi Amit,
if you are looking to buy a plot, you may not be eligible for a home loan, but for a land loan. Home loans are available only for the property already constructed, under construction or likely to undergo construction soon. For funding the purchase of a vacant plot, you will have to go for a land loan instead.

Ravi Ji, Lucknow

22nd March 2016

Comment

Yes, but in your case as you have clear title, you can get land loan from co-operative banks in your locality. Also, lenders mostly only offer a land loan if the borrower plans to construct a house on it within a given time period. Once the construction is finished, the completion certificate or occupation certificate can be submitted to the bank so that the loan can be converted into a regular home loan and the borrower can avail the income tax benefit.

Aslam, Lucknow

23rd March 2016

Hi,
Land should be converted to NA before use of residential. Non-agricultural status of land can be obtained only from collectorate of the district under sec44 of MLRC. If your land has approach road ,and the land is located in R zone ,you get NA order by due process after lay out sanction by town planning dept. and NOC from various departments. Local Gram Panchayat can only sanction the building plan on NA plot for construction. Area of plot doesn't matter in this case.

Aslam, Lucknow

22nd March 2016

Comment

Hi Aslam,
I think you are partly right. Firstly, one has to convert the land to non-agricultural land and a non-agriculture order has to be obtained from the collector of the district where the property is situated. Along with this, you need to take the latest receipts evidencing the payment of non-agriculture tax. In cases where the conversion from agricultural use to non agriculture use is not done within the given time frame, there should be an order from the authority concerned extending the period.

Rubiya,

23rd March 2016