Buying a Plot/Land? Must Know Things Before You Buy Land in India!

Published: 22nd November 2011
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India is hot spot for property investment in India and for NRIís investment is major move, financially as well as emotionally. But there are few things you need to watch out before you invest your hard earned money into a land or property which seems to be real big in next five years. So here we go, read all the five important steps.
There could be lot of reasons to write this article, but most evident is one news that I read about a NRI got fleeced in a land deal and had to face heavy losses.
I have listed down on the few things one must be aware before buying any land in India. Hopefully, this will help our reader to get a quick idea about what all things you need to take care of.
land deal Buying a Plot/Land? Must Know Things Before You Buy Land in India!
Has the property cleared legal titles?
Is your builder offering a pre launch scheme where the land has still not even been given a clear NA (non agricultural) title?

You will need to make legal checks on the history of this land Ė whether it still holds rights or interests of any third party that could pop up after you buy the land. Always make sure that you have had look at the ownership of land papers. It will save you a lot of head-ache at later stage.

Have you understood your rights for delays?
Have you invested in a real estate project 2 years back and havenít seen any development in the property as promised? A lesson to be learnt from this is that you must understand your rights on delay of construction before you buy the property.

Invest in a construction-linked scheme where a start date and an end date for construction is given. If possible, maintain a rapport with others buyers so that in cases of emergency, you have backing in terms of numbers to put pressure on the developer.

Is your property being built on reserved land?
You might think that developers would never do this. But donít be surprised if the government comes knocking on the door of your new residence asking you to evacuate because your house has been constructed on land which was only reserved for government projects like irrigation of a site of archeological research. Ensure that the proposed land is clear of such reservations.
Have you checked the operating history of the developer?
Are you rushing to buy land in a scheme because it has thrown up some grand visuals of Venetian villas being built on the banks of a river? Then stop! Cross check the name and the operating history of your chosen developer.

How many projects have they successfully competed in the past? Talk to some buyers who may have purchased property with that developer. How much possession of the developerís land has been taken successfully? Have they stuck to their promises of giving facilities in the plotted scheme?

How many documents does your developer need to clear and have in hand?

There are many documents that you will need to ensure that your developer has cleared in his files. From the 7/12 document which is the most critical document of Title and proof of rights to land revenue tax receipts, Title Deed, Stamp Duty document, Encumbrance certificate, Municipal Corporation approvals, Release Certificate from the bank, Allotment letter and the development agreement, the list is quite long. Make sure you have correct legal advice on the whole gamut of approved documents required.

With the kind of controversies that the real estate domain has been plagued with in the past decade, it is critical that you safeguard your interests first. Until then, letís just hope that some kind of regulation enters the real estate space with the RERA Bill which has been in the pipeline for many years.

Real Estate Developer In Mumbai
Real Estate Mumbai
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