- Real Estate
Things to consider before buying a plot of land
Owning a sweet home is everyone’s dream but not all are lucky enough to get their dream home. Though, few people get the opportunity, not only to have their own house, but also to build it as per their choice. It is kind of a dream come true when you have a plot of land and you can build your house as per your instructions and desires. Obviously, it sounds great but owning a plot of land is not as easy as it may sound. It requires tedious paper work, and of course, lot of money to buy a decent plot in a good locality.
Is investing in land a good option?
Many people prefer to buy a plot and build a house of their choice, as it can give much better returns than an apartment flat. If you can get a plot of land in an upcoming residential area, its value may increase many times; it may even go up to 5 or 10 times. This is the reason people prefer to buy a piece of land rather than a built property.
Things to consider before buying land
If you are planning to buy a plot of land either for investment purpose or to build a house, be careful while doing paperwork as purchasing a plot can be problematic. You must need to cross check all documents because it might be possible that the plot on sale may not be approved to be used for residential purpose or it may be involved in any legal dispute. Unfortunately, most people are not aware of the paperwork involved and sellers exploit the buyer’s ignorance. It is always advisable to consult a lawyer to verify all the documents before you purchase a plot.
Documents to check before buying a plot
There are various documents and certificates that need to be verified before purchasing a plot of land. One also must find out if the land is not agricultural as a non-farmer can not buy such land without permission from the district collector. Find out the below listed documents that must be verified before buying a plot of land.
- 7/12 Document: This document contains the most basic information including name of the owner, land area and other such information (title deed). This document should be in conjunction with 6/12 document which states how the land has changed hands.
- Encumbrance Certificate: This
certificate ensures that the land is not involved in any legal dispute.
You can ask for an encumbrance certificate that goes back till 30 years to be 100% sure
of any past legal disputes.
- Release Certificate: The land may have been pledged to take a loan. So, you must ask for release certificate from the bank to ensure that no amount is due. If land is owned by more than one person, ask for a release certificate from each of the person involved.
- Tax Receipt and Bills: You must check with the concerned municipality to verify all the taxes and bills have been paid till date and inspect the latest tax paid receipts.
Apart from the above documents, there are few more things that you need to check before signing the deal. You should get the land measured by a recognized surveyor and check for the accuracy. You must also check if the land has been reserved for a particular project or the land may have been acquired for some project by state or central government.
All the above checks are required before buying a land. When you are satisfied and all set to buy the plot, pay the stamp duty and get the land registered. The whole procedure of buying the land will be complete only if your name is added in the village office records. Due to all these paperwork involved for buying a plot of land, most people prefer to purchase a built property. To buy plots in townships, you have an easier option as developers have started selling plots in suburbs of towns and other remote areas at cheap and affordable rates. Plots in townships are generally much safer and do not require such tedious paper work.
So, think twice before you buy a plot of land for the sake of high returns and eventually fall in someone’s trap.
- Home Loan or Rented House
If you are planning to take a home loan, then better stop for a moment, think again and do some calculations. After doing so, make your decision on whether to stay on rent or to buy your own house.