Buying land in India for investment or for living is considered to be a major move financially and emotionally. Before you invest a huge chunk of your savings in a scheme that looks attractive or in a piece of land which looks it’s going to boom in the next 5 years, watch where you step.
There is also another reason, why I am writing this article – My Father & One of my Father close friends recently got fleeced in a land deal and had to face heavy losses. Here is a lowdown on the few things you must know before you buy land in India – hopefully it will help our readers to get a quick idea as to what all things that you need to take care of…
There is also another reason, why I am writing this article – My Father & One of my Father close friends recently got fleeced in a land deal and had to face heavy losses. Here is a lowdown on the few things you must know before you buy land in India – hopefully it will help our readers to get a quick idea as to what all things that you need to take care of…
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 – 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.
You will need to make legal checks on the history of this land – 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 haven’t 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."
"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 don’t 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 archaeological 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 developer’s land has been taken successfully? Have they stuck to their promises of giving facilities in the plotted scheme?
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 developer’s 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, let’s 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.
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, let’s 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.
SO B CARE FULL
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