As per law, the agricultural land should be purchased by the farmer only and it should not be purchased by any non-farmer and it should be utilise for only agricultural purposes. If the purchaser wants to use it for other purposes, he has to obtain permission of the District Collector.
The Banks forms a check list of documents before it give loan to the borrower. I am sending the same, which will be almost applicable to your case:
CHECK LIST REQUIRED FOR SCRUTINY OF TITLE
1. Title Deed (Sale deed, Gift Deed etc) i.e the title deed of the person from whom you are purchasing.
2. Link Documents (i.e. Vendors previous title deeds, including pahanies/RTC) for 30 years backwards from now.
3. Encumbrance certificate for minimum period of 13 completed years.
4. Whenever joint family is there, take full particulars of Family Pedigree.
5. Possession must be physically verified and boundaries should be tallied with the title deed and link documents.
6. In case, vendor is a coop. Housing Society NOC from Society also.
7. Physical verification of title deeds and link documents in sub registrar office or MRO in case of pahanies.
8. Any pending litigation in courts.
9. Whether property is effected by local laws—any permission is required before mortgage of property.
10. If the property is of partition/settlement, whether original is available. Is it registered or not.
11. In case of partnership firm check up whether the property is in the name of firm or individual.
12. Ensure that no arrears of land revenue/M.Tax.
13. Tax Receipts and Bills—Property taxes which are paid to Government or Municipality are a first charge on the property. While investigating, you need to ascertain whether any notices or requisitions relating to the property have been issued.
14. Take Urban Land Ceiling clearance as on 21.1.1976.
15. Check up Whether permission of conversion of lands from Agricultural to Non Agricultural (i.e. residential/commercial/Industrial etc).
16. RTC for the year 1954-55.
17. RTC starting from 1964-65 for every 10 years till now.
18 Latest RTC
19 Pattadar Pass Book & Title Deed
20. No Due Certificate from Local PACS (Primary Agricultural Coop. Society)
21. No P.T. Certificate. (PT means Protect Tenant)
22. If P.T.is there check up whether the vendor has obtained 38-E certificate or not.