Buying a plot: the crucial four factors to follow

Buying a plot, however big or small it might be, needs to be done with careful consideration. A small piece of land can become a big nightmare for a buyer, if the basic details are not scrutinised properly.

Whether it is for investment option or to build a house, a buyer cannot afford to ignore the basic points before purchase.

The list given below will be ‘a handy note’ for those planning to purchase to a plot.

1. Check the title of the land.

2. Get the approvals from statutory bodies.

3. Complete the documentation .

4. Handle post-registration issues.

Find out whether the seller is individual/partnership/HUF/JSC. Thoroughly check and satisfy yourself with the marketability of the property title in terms of whether the owner is the original owner and whether the title deed is original. Obtain legal opinion .

Similarly, if you are buying a resale plot, ask for the purchase agreement, which is the agreement between the current seller and the previous owner and get it scrutinised by an advocate.

He/she will identify whether the seller is truly entitled to sell the property, whether any mortgage exists on the property and if it has been paid off and whether there is any lien on the property. Retain a copy of this document and also check the original.

The nature of land, whether residential/commercial/ industrial/agricultural, has to be ascertained.

All land in India is considered as revenue land or agricultural land.

Ask for all the legal documents in original. Check whether a ‘No Encumbrance Certificate’ has been obtained to ensure that no mortgage exists/has been existing on the property. Get a ‘No Objection Certificate’ from the builder/society.

Check for authentic approvals from government agencies such as land development, planning authority and Income Tax Department.

Make sure to include every conceivable clause in the Sale Agreement.

A Sale Agreement is the only written evidence of the deal, so it should include everything from payment terms to exact description of the title.

Understand the finer details of the sale contract properly to arm yourself with knowledge that shall be beneficial during and after the transaction is complete.

Take care that all the duties that are to be paid on the property like stamp duty, registration fees and taxes are included in the Sale Deed/Agreement to Sell.