Posted by Buying a plot in India can be a great option if you want to build your own home and make a good investment. But it can also be a difficult and dangerous process if you don’t know what you are doing and what to look out for. Before you seal the deal, you need to check and confirm many things to prevent any legal or financial problems.
To help you choose wisely and securely, here are some queries you must ask before buying a plot in India.
Q.1. Is the seller the legal owner of the plot and does he have the right to sell it?
This is the most basic and essential question you need to ask before you apply for a plot loan to buy any property. Verify the seller’s identity and ownership and ensure he has the legal authority and consent to sell the plot. You should also check the history and background of the plot and ensure that it is not inherited, gifted, or mortgaged to someone else.
You can do this by asking for the original title deed of the plot, which is the document that proves the ownership and transfer of the property. Also, check the mutation record, which is the document that records the change of ownership in the revenue records. Ask for the encumbrance certificate, which is the document that shows if the plot is free from any liabilities or claims.
Q.2. Is the plot free from any encumbrances, liens, or disputes?
Another crucial question you need to ask is whether the plot is clear of any legal issues that may affect your ownership or possession. Avoid buying a plot involved in litigation, arbitration, or injunction, as it could lead to a pricey legal battle. You should also avoid purchasing a plot subject to any lien, charge, or mortgage, as it could result in losing your property or money.
You can find out if the plot is free from any encumbrances, liens, or disputes by obtaining the encumbrance certificate, as mentioned above. Also, inspect the plot and the surrounding area and look for any signs of encroachment, trespassing, or boundary disputes.
Q.3. Is the plot approved for residential use and does it have a non-agricultural (NA) order?
Another critical question you need to ask before getting a loan against property is whether the plot is suitable and permissible for residential construction and development. You should avoid buying a plot that is designated for agricultural, industrial, or commercial use, as it could violate the land use norms and regulations. You should also avoid buying a plot in a restricted or protected area, such as a forest, wildlife sanctuary, or coastal zone, as it could pose environmental and legal challenges.
You can find out if the plot is approved for residential use and has a non-agricultural (NA) order by checking the area’s land use plan and zoning map, which the local planning authority or the municipal corporation issues. Ask for the layout plan and the building permission for the plot, which are issued by the same authority. Request for the conversion certificate, which is the document that grants the change of land use from agricultural to non-agricultural.
Q.4. What is the floor space index (FSI) of the plot and how much can you build on it?
Another relevant question you need to ask is how much floor area you can construct on the plot and what the limitations and restrictions are on the design and structure of your building. Avoid buying a plot with a low floor space index (FSI) or a high ground coverage ratio (GCR), as it could limit your scope and flexibility of construction. Also, avoid buying a plot with a high setback or a low height clearance, as it could affect the aesthetics and functionality of your building.
Q.5. What are the amenities and facilities available near the plot, such as water, electricity, roads, schools, hospitals, etc.?
Another significant question you need to ask is what amenities and facilities are available near the plot and how accessible and reliable they are. You should avoid buying a plot located in a remote or underdeveloped area, as it could compromise your quality of life and convenience. You should also avoid buying a plot dependent on external sources or private suppliers for essential services, such as water, electricity, sewage, etc., as it could increase your cost and risk of disruption.
Q.6. What are the future prospects and development plans for the area where the plot is located?
Another vital question you need to ask is the prospects and development plans for the area where the plot is located and how they will affect your property value and lifestyle. You should avoid buying a plot located in a stagnant or declining area, as it could reduce your return on investment and growth potential. You should also avoid buying a plot located in a congested or polluted area, as it could deteriorate your health and well-being.
You can find out the prospects and development plans for the area where the plot is located by researching the market trends and the demand-supply dynamics of the region.
Q.7. How much is the stamp duty and registration fee for the plot and what are the other taxes and charges involved?
Before buying a plot in India, you need to know how much tax and fee you must pay. The stamp duty and registration fee are based on the market value of the plot, which you can find out from the state and district authorities. The property tax and maintenance fee are based on the location and size of the plot, which you can find out from the local body. You also need to get the sale agreement and the sale deed, which are the legal papers that show the deal and the ownership of the plot. You should not buy a plot with too much tax and fee, as it will make your purchase more expensive and difficult.
Q.8. How can you finance the purchase of the plot and what are the loan options and eligibility criteria?
Before buying a plot in India, you must know how to pay for it and what kind of plot loan you can get. You should not buy a plot that is too expensive, as it could ruin your finances and plans. You should also not buy a plot that does not qualify for a loan or has a low amount of loan available, as it could make your purchase harder and less profitable.
You can learn about the preceding this by talking to a financial expert or a loan against property broker and getting a loan approval and confirmation letter. You should also check the interest rates, the duration, the monthly payment, the processing fee, and the other details of different lenders, such as banks, NBFCs, HFCs, etc.
Conclusion
These questions will help you assess the plot’s ownership, suitability, feasibility, cost, legality, and taxation and ensure you get the best value for your money.