Everything Buyers Need To Know About Patta Land

Everything Buyers Need To Know About Patta Land

Everything Buyers Need To Know About Patta Land

Colloquial terms are very popular in Indian property-related transactions, often leaving buyers and investors wondering about what their legally-binding interpretation could be. One such term, primarily used in land-related dealings in north India, especially Uttar Pradesh and Bihar, is patta.  While the term ‘patta’ conveys ownership over a land parcel, its legally binding meaning is slightly different.

What is patta?

The Hindi term ‘patta’ literally means tenure and its legal interpretation –lease – derives from this primary significance. When the rights of a land parcel are transferred by the owner to another entity for a specific period through a lease, a patta document would formalise the process.

“A patta document signifies that a land parcel has been acquired for a specific time period by an entity by carrying out a lease agreement. Thus, patta is nothing but a lease agreement. It must be noted here that the title of the land isn’t transferred in the name of the entity leasing the land; it remains intact with the original property holder,” says Brajesh Mishra, a Gurgaon-based lawyer specialising in property law. “Buyers often confuse this term with land holding, which is nothing but a widely-held wrong notion,” adds Mishra. The document, also referred to as record of rights, clearly mentions the name of the lessee as patta-dhari, the leaser as patta-data and the leasehold property as patta-dhriti. As this lease is registered before legally coming into effect, the local revenue department keeps a record of all lease agreements.

Word of caution

Buyers investing in plots have to remember that a lessee has no legal right to sell a property. For a plot purchase, one has to deal directly with the landlord while also making sure that the said property has not been leased by him.

Last Updated: Mon Apr 15 2024

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