What to see while buying a plot?

Property investment has always attracted everyone as they give better returns over other investing options. Buying a plot of land is a rewarding purchase but it has become a messy and tricky process nowadays as the increasing corruption is taking a toll over the deals.

Issues of disputed land sales, fake documents and demand for half payment in cash are some of the activities that are involved in this affair. So, if you are going to buy a plot of land, you need to do a careful analysis of all the things. Here are some important points that you need to see before going ahead on this path.

1. Location of plot:

You need to well aware about the area where the plot is located. The plot should be in such location which is close to prominent area like market, schools, hospitals, bus stand, railway station etc.

2. Check the use of land:

It is important to verify the land-use as per the city master plan which you can acquire from the local body office of the respective city.

3. Title Deed:

Checking the title deed is important to verify if the seller of the plot has full right over the property. This you can do by checking the title deed of the plot and see if the plot of land is on the name of the seller and there is no involvement of other person in it. The original title deed should be cross checked from a reputed lawyer.

4. Receipts and Bills of Property Tax:

Clearly ask for original receipts and bills from the land owner and ensure that all payments have been duly paid. This is very important step as any negligence in this case can result in legal complexities and more expenditure in future.

5. Getting an Encumbrance Certificate:

An encumbrance certificate confirms that the land is free from any legal issues and unpaid dues. The certificate can be obtained from the sub-registrar’s office where the deed is registered.

6. Clearance from Banks:

Obtain a clearance certificate from the bank that the owner does not acquire any loan against the land. Incase the owner has acquired any amount of loan earlier, the clearance confirms that the entire amount has been repaid and no amount is unpaid by the owner now.

7. Check price of land from 2-3 sources:

Do not jump to grab the plot only because you feel it is a cheaper deal. It is always advised to check the price of plot from 2-3 real estate dealers so that you get the real value of the land. By doing this, you can negotiate better with the seller of plot.

8. Do your research:

Last but an important thing to see is to do your own research. Participate in online real estate forums and identify any contingencies or issues that can obstruct the development of construction path on the plot in future.

Look for plots that offer good value to you in present and significant appreciation in the coming future.

9. Check the potential of plot:

Regardless the location of plot, another important factor that you need to consider is checking the potential of plot. Say, if you want to build a villa on the land, a plot near a beach or a hilly region will make the construction difficult. Also, check for the availability of basic amenities like water and power supply.

Once you evaluate your purchase decision on the basis of above mentioned points, your investment on land will be going to be perfect.

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