Even though people, nowadays, have plethora of options to invest in when it comes to real estate, the traditional sense of land ownership is still considered to be the best investment choice. However, buying a plot requires a due diligence. Prior to signing any agreement, it is important for you to verify each and every aspect related to the land including its area, location, value, local approvals etc. Here is the step-by-step guide which you should definitely look at before buying a land to build your dream home.
As much tedious as it may sound, checking the necessary documents is the most important thing to do before buying a plot. Here is the list documents that you must verify with the seller of the land to avoid the conflicts later.
• Title deed: This document is important to prove that the seller has undisputed legal ownership of the land. Never accept the photocopy of title deed. Once you receive the original deed, analyze it carefully. Make sure the plot must be in the name of seller. Further, check whether the seller has complete rights to sell that plot and he is the sole owner of that land.
• Encumbrance Certificate (EC): This document will ensure that the land where you are interested to make your dream home is free from legal dispute. You can get the EC from sub-registrar’s office.
• NA order: Many people don’t know this fact that all the lands in India are classified as Agricultural land unless registered for some other purpose by the government. Thus, for carrying out any real estate activity, you have to first convert the land to non-agricultural land (NA). There are various types of NA orders – NA-Residential, NA-Commercial, NA-Warehouses, NA-Resort, NA- IT/ITeS. If you want to buy the plot to make an apartment, you need to have the ‘NA- Residential’ order.
• Local approvals: Make sure that the plot has all requisite approvals in place.
• FSI of plot- FSI stands for Floor Space Index of the plot. It refers to the ratio of covered areas allowed to be constructed on the plot to the total area of the plot.
2. Conversion and land use approvals
With the increasing urban development, the conversion of land from agricultural to non-agricultural use has become important. Many State Laws restrict this practice; however, the buyer must check the Master Plan of the area before buying any plot and he should make sure that the land is in accordance with the zoning plans of that area.
3. Connectivity is essential
Before signing the dotted line, it is better to check whether the plot is located at a decent location. Functional connectivity with metro, buses and other modes of transport is essential to enhance the value of your property.
4. Physical Verification
If you have decided to invest your money in buying a plot, physical verification of the land is must. What might look good in pictures, might not be the same in reality. Carefully check the dimensions of plot. You can also hire a professional surveyor to do the proper verification.
5. Value of the plot
Investing in a residential plot is not an easy decision to make. Please do not rush into anything. Even if the deal seems great to you, it is better to spend some time on the research before buying the piece of land. If you are buying it for the first time, don’t shy away to take the help of a real estate agent. It is important to know the value of the plot in order to make an informed decision.