Agricultural land investment & legal procedure involved in it


Are you a real estate investor but willing to invest in agricultural land? Then it is not a bad idea as many investors now invest in agricultural land. Investment in farm land has its own benefits. But don’t forget to learn the legal aspects for agro investment and the solutions for the same as mentioned here in this article.

You might not be able to invest in real estate because of sky shooting prices of real estate in urban areas. Thus here we are having a good option for you. You can invest in agricultural land, purchase of which is very trendy nowadays.

According to out experts, investment in agricultural land is very pocket friendly. It can also be source of tax free income. However, the process to purchase agricultural land is not as simple as purchasing an apartment. Purchasing of agricultural land includes many issues out of which legal issue is major one. You have to pass through a legal procedure to purchase an agricultural land.

In most of the states, only farmers are permitted to purchase agricultural land. Every state of our nation has its own rules for the sake of protection of our peasants. These rules states that agricultural land can be used only for farming purpose. If you dot have to use the agricultural land for farming and you don't fall under the category of a farmer, then you have options to present yourself as a farmer. Read what our experts say.

  • First, you can show your father or grandfather as a farmer, if they actually were.

  • You can show that you are already having some agricultural land. According to a lawyer (sorry, we can't publish his name)

  • You can also purchase the land on the name of a peasant and share profit with him. This process is purely based on contracts. Please note that this process may not be illegal but it is hard to justify it as legal.


We, at www.investmentpath.com, highly recommend going for legal procedure only to avoid any trouble in future. Our experts suggest that if you have not declared yourself as a peasant, even then you can purchase it. For this, you have to apply for conversion of agricultural land into non- agricultural land. Change in land usage is done for non- agricultural purpose. Such land can be used for any purpose other than farming. But for this purpose, you have to obtain conversion rights from related department. This is a very long process which takes long time period in completion.

Location and area of agricultural land


Generally, you will always find an agricultural land far away from your place. So, never consider the distance of such agricultural land from your location. But it is suggested to consider the facility of electricity, water and path from main road to the land. Also consider the size of plot to be purchased. According to experts, you should purchase agricultural land of large size so that farming can also be done easily there.

Legal issue while purchasing agricultural land and how to solve them


Once you select the land which you want to purchase, then your first and foremost step should be to know that how to handle legal aspects while purchasing agricultural land. Don't miss this important aspect while purchasing an agricultural land. For this purpose, you can talk of due diligence from a goof law firm. The title of the land should also be clear. If you are unable to understand the legal issues then you can contact a realtor or a local broker for this purpose.

Most of the people commit a mistake, i.e. they do not notice that whether the land is acquired by correct process or not &whether the farmers are rehabilitated or not. Ignoring such facts can send invitation to many legal conflicts.

But here we are not just to explain the problems; rather we have solutions of such problems too. They are listed as below:
1. Read the law of the state in which you buy land.

2. There should not be any legal issue or dispute on such land.

3. Make investigations of the title of the land prior to 30 years.

4. Any minor should not be the owner of land.

5. There should not be any road or street passing through the land.

6. There should not be any well on land.

7. No LT/HT electronic wire should pass from such agricultural land.

8. The boundary of land should be highlighted properly.

9. The seller should go for proper boundary or fencing of land before the transfer of title.


More articles: Agricultural Investment

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