Construction industry

General Guidelines while purchasing a plot for construction

Aug 29 2019

Varshnee Raj

Real estate is a tricky piece of business for all. Picking the right property always involves a tedious filtering process and finalizing. But all this can be fruitful only if you have the right information important to know about the property before purchase. When I comes to buying plots or a piece of land I would say it is slightly more difficult because what parameters and aspects to look for stays a question

So , this will be a guide to understanding what you need to understand and know before you buy a plot for construction.

  1. Research before you settle :

    A real estate purchase of any kind should be well though out. Understand the various types of land that is available in the market such as green field which is a new land to develop whereas brownfield which has been built over previously. But this can be sorted only when you decide where to buy. Whether it is to build or just as an investment, location is very important because you will expect a better value at some point in the future. Do not fall for low cost offers in some far away place which might not have prospects of developments even after decades. Carefully analyse the purchase pattern of land and other properties in the nearby area as well as expected developments in the near future. Explore on online portals and discuss with various developers or owners before you decide where to buy.

    Try to find what kind of land it is. It might have been a water body before or might have other issues. So, understand the exact type of land whether It is plain or a slope, how was the land used before etc,. This is extremely important as this will determine the strength and efforts required for the construction. Obtain an old map to understand these aspects or ask around.

  2. The Legals :

    Once you have settled on where and which land to buy based on the size, location and other features , legal matters need to be handled. Before you even start do a thorough background check of the builder or the land owner along with the plot. Make sure there are no pending litigations and disputes over this property as well as get a good view about their current project other than this. This will help you understand if the builder is credible.

       Next comes the title deed which is to check if the seller actually has the right over this property. Check a deed with a reputed lawyer to figure out any dependencies or issues that might cause problems in the seller selling the plot to you. Similarly, to ensure no legal dues are pending on this piece of land check of the Encumbrance certificate for the last 30-35 years. This is issued in the sub-registrars office assuring the land is free of any legal disputes.

    Look for certificates that ensure that the plot has been approved by the local bodies and get the necessary documents verified by a lawyer. Also, in case the land has been pledged for a loan anytime before obtain and verify the release certificate. Similarly, ask for property tax payments receipts etc,. from the seller to avoid any shock of overdues later.

    Lok for the NA order. All lands in the country are accepted as agricultural land by default unless specified as NA in which case it is specified as NA- commercial , NA residential, NA resort etc,. Make sure the land you buy holds an NA with the same purpose of your construction.

    Find out what if is the FSI for the plot meaning how much percent of the land can you build. It could be 100% or 75% or anything varying from these. This will also determine price to a large extent as a 100% will cost more due to more utility than lesser.

    Know when the sale deed will be complete. Agreement to sale is only the first step whereas one needs to obtain a Sale deed registered at the sub registrar office to make it happen. This will make you the legal owner. Also look into the 7/12 documents which states the owner history for the past 30 years. This will give a brief of the type too.

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