Conversion Certificate

A conversion certificate is a document that quite simply grants approval for land conversion. For context, land conversion refers to the process by which agricultural land is converted to non-agricultural land for the purpose of construction, such as building a house.

The document of conversion certificate is a vital one since, by law, a piece of agricultural land cannot be converted to or used for residential or other purposes without express permission from specific authorities.

The process of procuring a conversion certificate can vary across the states in the country. In some states, the process of land conversion can be known by a different term - namely, the DC conversion, referring to the title of ‘Deputy Commissioner’ who is responsible for granting the approval.

When a landowner plans to use their land for a purpose that is not permitted by law, they are legally obligated to change the land use. For example, if an individual plans to run a business activity from a land that is meant for residential use, it will be considered illegal. It is possible that the individual will be subject to penalties as well as a demolition if he or she fails to convert the property following multiple warnings from the local authority. Prior to using the property for other purposes, it is crucial that a conversion certificate is applied for and received so that no hurdles are encountered.

Therefore, if you plan to use your agricultural land for something other than agriculture, make sure you obtain a land conversion certificate before buying a property or a piece of land.

The authorities and officials that approve land conversion in India vary from one state to another. Here is a comprehensive list of states and their respective land conversion authority. Also, it is to be noted that in states where there is no specific land conversion authority, the property owner will have to approach the district magistrate or the district collector in their respective state to receive a land conversion certificate.

The fees might vary from one state to another. If the land is used for residential purposes and is within 12 km of the city corporation limit, a conversion fee of Rs. 327 will be charged. If the land is used for commercial use and is within 12 km of the city corporation limit, a conversion fee of Rs. 654 will be charged.

It is to be noted that the charges are higher if you are converting the land for commercial or industrial use when compared to the conversion for residential use.

With the conversion certificate, the dream of building your very own home can be one monumental step closer. Make sure to keep the documents required for the process handy for the application, and exercise patience as the process takes time. However, it is important to note that the conversion certificate is, after all, just one part of the process of constructing your home.

There are various other requirements that you might need to fulfil, some of which might be financial, such as securing an efficient home loan. To that end, consider availing one of the various forms of home loans available on the Bajaj Markets platform. Not only can you find the home loan funding you require, but you can also avail benefits such as flexible tenure options and minimal documentation during the application process.