How to convert agricultural land to commercial land


There is a standard procedure for conversion of land from agriculture to commercial or industrial use land. Though state to state there may be some small differences in the procedure but in general you have to approach the local land revenue office for this.


Can agricultural land be converted to commercial or residential?

 · If your application is complete in details the revenue office will verify the details and inspect the area and the plot for ascertaining that the plot can be converted to commercial use. They will also calculate the fee required and you will be asked to deposit the same in their office, bank or treasury.

What is the conversion rate of commercial land to industrial land?

 · Generally changing agricultural land to commercial or residential use would be considered to be a radical change in character and identity. As to the increase in burden, that will be a question of fact. Particularly when considering changing the use of agricultural land, it is worth bearing in mind that neighbours may also have agricultural …

How to convert agricultural land to commercial land in Karnataka?

 · Firstly, check with your local authority for your land usage zoning. If zoning allowed for commercial, you need to appoint Planner plan your commercial units for Planning Approval from local authority. Oh thanks for your reply. Yes, the land is zoned for industrial or commercial. Not sure which one.

What is the meaning of land use conversion?

Answer: Well gentleman i am residing in U.P. and i will tell you that here for this there is a law named CLU i.e. change in land utilization. Stamp duty and taxes have to be paid to the govt. In …


Why is it important to have the correct easements in place?

If landowners want to change the use of their property from agricultural to commercial or residential, then it is important to ensure that they have the correct easements in place to support that change of use.

Can an easement exceed the amount of land granted?

There is an established principle that an easement must not exceed that which was granted or acquired. The area of law is complicated, and there is some contradictory case law. In the leading case of [McAdams Homes v Robinson & Anor], the Court of Appeal issued some guidelines on the extent of which an applied easement can continue to be used if the use of [dominant land] has changed and/or additional buildings have been constructed. The two questions that the court focused on were:

Can neighbours have agricultural land?

Particularly when considering changing the use of agricultural land, it is worth bearing in mind that neighbours may also have agricultural land, and this gives rise to specific additional considerations. If the drainage is through open ditches, then landowners downstream of the development may be concerned about the content of the water.

Is changing agricultural land to commercial land a radical change?

Generally changing agricultural land to commercial or residential use would be considered to be a radical change in character and identity. As to the increase in burden, that will be a question of fact. Particularly when considering changing the use of agricultural land, it is worth bearing in mind that neighbours may also have agricultural land, …

Can you change agricultural land to residential land?

If the answer to both questions is ‘Yes’, then the landowner’s right to enjoy that easement will come to an end, or at least be suspended for so long as the change in character and a substantial increase in burden are maintained. Generally changing agricultural land to commercial or residential use would be considered to be a radical change in character and identity. As to the increase in burden, that will be a question of fact.

Does rain run off land?

Still, with commercial developments, where they are predominantly covered with hard surfacing, rainwater and particularly stormwater will likely run off the land more quickly into the drains and ditches. This will intensify the amount of water significantly that the drains need to carry.

What is the premium for agricultural land?

For agricultural land to commercial land, the premium would be 75% while for semi-public land to residential land, it will be 20%. For residential to industrial use, the premium would be 20% while for forest to agricultural, it would be 40%.

Which section of Karnataka land revenue act laid down the procedure for conversion?

In Karnataka, section 95 of Karnataka land revenue act laid down the procedure for conversion and District Commissioner of the respective District has the authority to convert the lands from agriculture to residential purpose.

Can oil companies set up a pump?

Yes you can do that. Traditionally this is the procedure followed by oil companies to set up Petrol Pump. First of all you need to make sure that oil company is willing to setup Petrol Pump at that piece of land. Land does not have any overhead electricity or telephone cables passing over it.

Can land be mortgaged other than agriculture?

According to current and old acts land can not be mortgaged other than agriculture purposes. UPZALRA section 143 and UP Revenue Code act section 40 has a provision of land conversion from agriculture to non-agriculture purposes by Sub Divisional Magistrate (SDM). You have to prove your version.

What is the difference between commercial and agricultural land?

The difference between the two lies mainly in the use of the land. Commercial land can be used to construct houses, schools, hotels, offices etc. However, agricultural land can be used only for farming.

How many documents are needed to convert land?

Only 2/3 documents to be submitted instead of 20 for land conversion

Can agricultural land be converted to commercial land?

Land can be broadly categorized as commercial and non-commercial or agricultural land. Non-commercial land can be converted to commercial land but until now, the process of conversion was very tedious and lengthy.

Can you use agricultural land for farming?

However, agricultural land can be used only for farming . The buyer may build a house on part of the property but this can only take up a small percentage of the total land available. Agricultural plots are also usually much bigger than commercial plots and are not considered as capital assets.

What is land conversion?

Land use conversion is defined as the act or method of modifying the current physical use of a parcel of agricultural land for either a non-agricultural purpose or the same agricultural use but other than soil cultivation as well as growing of crops and trees as approved by DAR. However, it is important to note that land use conversion is different …

When was the Comprehensive Rules on Land Use Conversion passed?

Your dream might only be a few documents away from becoming a reality given the recent amendments on the 2002 Comprehensive Rules on Land Use Conversion by the Department of Agrarian Reform (DAR).

Can a landowner apply for land conversion?

To start, only the landowner or his/her duly authorized representative can apply for land use conversion and submit all supporting documents. However, agricultural lands for conversion which were acquired under RA 6657 would only be allowed if the applicant is also the agrarian reform beneficiary. The beneficiary should likewise pay for the full price of the land.

What are the areas that are highly restrictive for conversion?

Lastly, areas highly restrictive for conversion include the following: irrigable lands with firm funding commitment, but are not covered by irrigation projects; agro-industrial croplands; highlands or areas with elevations of 500 meters and above exhibiting potential for growing high-value or semi-temperate crops; lands with notice of land valuation and acquisition, and; lands located within Environmentally Critical Areas (ECA) or involved with Environmentally Critical Projects (ECP).

Is a converted land a non-negotiable area?

The short answer is no. The long answer, however, is divided into three categories: convertible lands, non-negotiable areas for conversion and highly restricted areas for conversion.

What is reclassification in agriculture?

Compared to land use conversion, reclassification is the act of specifying the potential of agricultural land to be utilized for non-agricultural purposes. However, this doesn’t automatically allow a landowner to utilize the same agricultural land for different use. A converted land meanwhile gives the landowner an actual right to use …

Is the 2002 Comprehensive Rules on Land Use Conversion an executive method?

However, this isn’t merely for avoiding additional yet unnecessary fees in securing individual clearances. Instead, amendments of similar goals will allow the country to develop a comprehensive land policy framework that utilizes agricultural development towards sustainable economic growth.

How to convert land for residential use?

For converting your agricultural land for residential purposes, you have to approach either to the planning authority in your city or the revenue department. For instance, land owners have to approach the revenue departments of their cities for the conversion, in states such as Maharashtra, Karnataka, Rajasthan and Uttar Pradesh. [2]

What are the guidelines for converting land?

Important guidelines for converting: [4] Any development that must be undertaken in agricultural land must take place only after the land has been converted into non-agricultural use. An application form must be submitted to the relevant authorities, with the reasons for the conversion.

How long does a county encumbrance last?

A certificate of encumbrance can be obtained from the registrar’s office for the last 13 or 30 years to ensure that the county has no legal duties or complaints.

What is a conveyance deed?

Conveyance deed or sale deed of the land: A deed of sale is a document that transfers the title of the property from the seller to the buyer. This document will help you understand the ownership of the property and the details such as site measurement, boundary details, etc.

Is agricultural land converted to non-agricultural land?

8. The agricultural land is officially converted to non-agricultural land after a conversion certificate is obtained.

Who is authorized to convert agricultural land into non-agricultural land?

6. It is now the duty of the Deputy Commissioner or Collector who is authorized to permit the conversion of agricultural land into non-agricultural land. Deputy Commissioner or Collector will only allow conversion if they are satisfied that the necessary conditions have been met and there are no pending fees or litigation on the land.

When converting agricultural land to non-agricultural land, is a mandatory fee necessary to pay?

Fee Payment: When converting agricultural land to non-agricultural land, a mandatory fee is necessary to pay, depending on the type of property and the environment.

How much does it cost to convert farmland in Haryana?

In Haryana, you have to pay Rs 10 per sq metre, to get your farmland converted to residential use. While 10% of the property value has to be paid as conversion charge in Bihar, 50% of the total cost of land, as determined through the ready reckoner (RR) rates, has to be paid as the conversion fee in Maharashtra. In Delhi, the conversion charges vary from Rs 14,328 to Rs 24,777 per sq metre and additional floor area ratio (FAR) charges have been fixed from Rs 3,039 to Rs 7,597 per sq metre in various industrial areas.

How long does it take to get a land conversion certificate?

Depending on the state where you are applying for land conversion, it may take between three and six months, to get a conversion certificate issued. Considering that a host of documents have to be verified and authenticated, the approval might sometimes take longer than expected.

Can NRIs buy land in India?

Even though NRIs are not allowed to buy agricultural land in India, they will be within their rights to make the purchase, if such a land has been converted for residential purposes following the due process. There is no specific timeline within which the land conversion certificate can be issued to the applicant.

What happens if you breach the timeline for a land conversion?

There is a time limit within which the conversion has to take place. If that timeline is breached, the owner will lose his right to change the land use. Penalties are imposed on the owner, in case he uses the land for a purpose other than the one mentioned in his conversion application.

What is the second step in converting land?

The second step, is to check the veracity of each document. Since agricultural land is often owned jointly by several people, all efforts are made to ensure that the applicant has the approval of the other parties concerned, for the conversion.

What does RTC stand for in agriculture?

RTC (record of rights, tenancy and crops).

Who has the authority to allow land use change?

The authority to allow land-use change is vested in the district revenue department or the planning body. However, note that as land is a state subject in India, laws governing the land-use change are formulated by the state and are enforced in letter and spirit across that state. In case vast tracts of agricultural land have to be converted for purposes other than farming, the owner may have to approach an authority higher than the revenue department or the planning body.

Why convert commercial property to residential?

Similarly, learning how to convert commercial property to residential may allow home buyers to save money when looking to purchase a new home. With the recent decline in the economy, there is a large amount of vacant commercial properties, thereby decreasing the demand. Due to this, buyers are able to invest in a commercial property, convert it to residential, and save money overall.

How long does a property need to be listed before it can be converted to residential?

Some areas require the property to be listed for up to 12 months before it can be purchased for residential conversion. If you need help converting a residential property to commercial, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site.

What is zoning ordinance?

Zoning ordinances control how a property is used, and thereby how it is classified by the government. They similarly aim to protect existing developments from unwanted change that could impact businesses and communities alike.

What is access point in commercial property?

Access points – Commercial properties are often located in busy, high-traffic areas, which could mean they are less accessible for families and daily living. Shared entrances are also common in these properties.

What are the different types of property?

Types of Property. There are five traditional types of property: Commercial. Residential. Recreational. Industrial. Agricultural. Rezoning residential property may be challenging, as it impacts the community as a whole, often increasing traffic and reducing privacy.

Is zoning change required for a residence?

Even so, if the property is still primarily a residence, nether a zoning change nor a variance is required. With this, there are often strict restrictions on the percentage of the property allowed to be used for business purposes. Restrictions placed on the amount of customers seen is also common in these cases.


Leave a Comment