Buying a plot in Hubballi-Dharwad: 10 steps

1. Set a budget that includes the costs on top

The plot’s price is not the whole cost. In Karnataka you pay stamp duty of 5% with a small surcharge and cess on top, and a registration fee of 2%. Both are worked out on the sale price or the government’s guidance value, whichever is higher. Add your advocate’s fee and, if you borrow, the bank’s charges. The registration cost calculator gives an estimate in a minute.

2. Shortlist layouts, not just plots

A good plot in a poor layout is a poor buy. Look at the road into the layout, drainage, water, power and street lights, and at whether the layout itself is approved. On Real-Estate Explorer you can see each listed layout’s plots on the map and compare them side by side.

3. Ask for the papers before you pay anything

Ask the seller for copies of the title deeds, the encumbrance certificate, the land records, the conversion order, the layout approval and the khata. The full list, and where to check each one, is in Papers to check before you pay an advance.

4. Check the layout approval

Inside its planning area, the Hubballi-Dharwad Urban Development Authority (HDUDA) approves layouts. Ask for the approved layout plan and the approval order, and check that your plot number is on the plan and has been released for sale. See Is this layout approved?

5. Check the khata

The khata is the local body’s record of the property for property tax. In the twin cities, the Hubballi-Dharwad Municipal Corporation (HDMC) keeps it; in villages, the gram panchayat does. Find out whether the plot has an A-khata or a B-khata, because it can decide whether a bank will lend on it. See Khata types.

6. Check that the land was converted

Most layouts stand on what was once farmland, which needs permission for non-agricultural use before it can be sold as house plots. Ask for the conversion order or certificate and check that the survey numbers and areas match the layout. See Land conversion.

7. Get an advocate’s title report

An advocate who knows local property law can trace who owned the land and how it changed hands, ideally over the last 30 years, search the sub-registrar’s records and tell you what is missing. Ask for the report in writing. It costs far less than a bad plot.

8. Pay the advance safely

Pay an advance only after the checks above, by bank transfer, against a written agreement that says what happens to your money if the papers turn out to be wrong. If the layout is registered with K-RERA, the developer cannot take more than 10% of the price as an advance before signing and registering an agreement for sale with you (section 13 of the RERA Act). See K-RERA for plot buyers.

9. Pay stamp duty and register the sale deed

The sale deed is registered at the sub-registrar’s office for the area. In Kaveri 2.0, the Department of Stamps and Registration’s online system, you enter the deed’s details, pay the duty and fees online and book a time slot; the buyer and the seller then go to the office in person, where their photographs and fingerprints are taken. The deed must be presented for registration within four months of signing it (section 23 of the Registration Act, 1908). The stamp duty guide explains the charges.

If the price or the guidance value is ₹50 lakh or more, you must also deduct TDS of 1% from the payment to the seller and pay it to the government. See TDS on a property purchase.

10. Move the khata to your name and keep the papers safe

After registration, ask HDMC (or the gram panchayat) to transfer the khata to your name, and pay property tax in your name from then on. Keep the registered deed, the e-stamp, the receipts and the new khata extract together, with scanned copies.