December 1, 2015

What should you think about while buying a land/plot

Investing in commercial or residential property in India is a very profitable business. But before risking such a great sum of money buying something that looks attractive now or promises to be so in 5 years, consider the following important items not to suffer from heavy losses.

What should you think about while buying a land/plot
 Legal titles

It is necessary to check the history of the land you are purchasing. Find out whether the builder offers a pre-launch scheme, according to which the land is without a clear NA title, or there is some third person that has rights or interests in this land and you will have problems after acquiring such a land. Check the land papers' ownership. This will protect you from problems in future.

Rights for delays

If you do not want to face the problem that you made your investment 2 years ago but nothing has been done since then, you must worry about your rights on delay of construction until you make the final decision. Choose the projects with a given start date and finishing date of the construction. It would be a clever step of yours if you maintain a rapport with some other clients so that in emergency cases you will have a support to put pressure on the developer.

Reserved land

Make sure that the land you are buying is free from any government reservations if you do not want to be in situation when after building something on the land you purchased, you are asked to leave the place, because the house is located on the land reserved for a government project, e.g., a site of archeological research.

Developer's operating history

Do not rush to buy something only because you like the place where it is located. It is desirable to check the operating history of the developer. What projects have they finished successfully recently? Contact the clients who have already dealt with this developer. Has this developer tended to fulfill his promises of giving facilities?

Developer's documents

The developer has to file a lot of documents. The list of them includes 7/12 document (the most important one of Title and proof of rights to land revenue tax receipts), Stamp Duty document, Title Deed, Municipal Corporation approvals, Encumbrance certificate, Release Certificate from the bank, the development agreement, Allotment letter and a lot more. So, as you can see, it is better to apply for legal help on this matter. Pay attention to the fact that some of the documents are obligatory for you and some may not be necessary in your particular case, so the list should be verified in any case.
With so many controversies that have appeared in the real estate market recently, you should think about the means to protect your interests and your money first. Still there is a hope that certain regulations will be introduced in the real estate sphere with the RERA Bill, which is planned to be implemented for many years.