Sales

1. Capital Gains Tax When industrial land is sold, the seller becomes liable to pay capital gains tax under the Income Tax Act, as the transaction involves the transfer of a capital asset. Short-Term Capital Gains (STCG):Applicable if the land is sold within 24 months of acquisition. The gain is added to the seller’s income and taxed as per the applicable income tax slab rates. Long-Term...

1. Primary Responsibility of the Buyer In most jurisdictions, including under Indian property law and state-specific regulations, the responsibility for paying stamp duty on the sale of industrial land lies with the buyer (purchaser). This legal obligation is typically specified in: The Sale Agreement or Agreement to Sell, and Relevant state stamp duty acts and registration rules. The buyer...

1. After Completion of Due Diligence The sale deed should be executed only after the buyer has completed a full legal due diligence process, which includes: Verifying the seller’s title and ownership. Checking for encumbrances, liens, or legal disputes. Confirming land use, zoning, and regulatory compliance. Reviewing original property documents and approvals. Due diligence ensures...

1. Local Revenue Department Office The Taluk Office, Tehsildar Office, or District Collectorate is the primary government body responsible for maintaining and updating land revenue records. Individuals can approach these offices to verify: Ownership status of land. Mutation entries and history. Classification and usage of land. Boundary and survey information. These offices maintain...

1. Registration of Property Transactions The sub-registrar is a government official appointed under the Registration Act, 1908 (in India and similar jurisdictions), responsible for registering sale deeds and other property documents. Their primary role in land sales is to legally record the transfer of ownership by ensuring that the sale deed is formally entered into public records. The process...

1. Execution of a Legally Binding Sale Agreement The process of land ownership transfer begins with the drafting and signing of a Sale Agreement between the buyer and seller. This document outlines: The terms and conditions of the sale. Sale consideration (price). Time frame for execution. Obligations of both parties. This agreement is usually made on a non-judicial stamp paper and...

1. Proof of Clear and Marketable Title An Encumbrance Certificate (EC) is a legal document that provides evidence of the clear ownership status of a property. It lists all registered transactions associated with the land over a specified period, including sales, mortgages, leases, or gifts. This helps confirm that the current seller has valid ownership and that there are no legal claims or financial...

1. Buyer or Buyer’s Representative The initial responsibility to verify the land title typically falls on the buyer or their appointed representative. In most industrial land transactions, especially those involving high-value properties, buyers conduct comprehensive due diligence to confirm clear and marketable title before proceeding. Actions Taken: Requesting all ownership documents from the...

1. Proof of Ownership Documents These documents establish the legal right of the seller over the industrial land: Title Deed (Sale Deed/Conveyance Deed): The primary legal document that proves ownership of the land. It must be duly registered with the sub-registrar's office. Previous Chain of Title Documents: A record of past ownerships to verify continuous legal transfers and no break in...