How to Invest In Purchasing Residential Plots in India?

plot for sale in Ambala

Purchasing a plot may seem like a straightforward transaction between sellers and buyers. But the actual scenario is much more complicated. The cases of widespread corruption, like multiple buyers, persons selling illegal land using forged documents etc., are some factors to consider before investing in residential plots. Investing in a residential plot in India can be complicated and requires due diligence to ensure a safe investment. You must do your homework while investing in the plot for sale in Ambala.

Location to Invest

There is a higher opportunity to earn a healthy profit from your investment in the long run, in case the base price for the plot is low. When you buy in a saturated market, where land prices are already booming, it leaves an investor with much less scope to garner a good profit. Additionally, finding buyers is also a significant challenge when prices are skyrocketing.

In contrast, prices of residential plots in the peripheral regions of the city are very competitive. They sometimes might be 30 to 40% lesser than the main city. When civic, physical and social infrastructure expands in this area, the prices of plots will follow suit. Such progress in infrastructure not only improves the quality of life but also pushes up the cost of land and its plots.

Factors to Consider

Following are some sure-fire items to check while investing in residential plots in India:

Check the credentials of the property developer or seller

  • Before purchasing a parcel of land, buyers must ascertain and conduct verification of the identity of the seller.
  • Verify certificates of residence and nationality of the seller and whether the authority’s consent is needed for the sale of land.
  • When there is joint holding of property, it is a must to establish the identity of all the sellers.
  • When the seller is a company, it must verify its capacity for ownership and sale of the property.

Assure the Right Documentation

An essential element of buying land in India is a lot of paperwork. After finalising the decision to invest in a plot, it is a must to check the following documents in detail to avoid potential conflicts in the future.

Title Deed

When you wish for an undisputed transfer and legal ownership of land, you should ascertain the existence of an unambiguous and clear title deed of the plot. When there is questionable ownership of a deed, it must be examined with doubtfulness, and a property lawyer should be consulted. It must be ensured that the seller has all the original documents. Ensuring all the documents are duly registered and stamped at the suitable Sub-registrar office is vital.

NA order

In India, every plot of land is, by default, designated as agricultural land. When you are buying land for non-agricultural utility, it is a must that you should have an ‘NA-Residential’ order.

Certificate of encumbrance

This certificate verifies that land is free from all dues of legal nature. Such a document is vital to establish there are no litigations or pending dues on the property.

Certificate of Release

When you buy a plot from a resale market, there are chances that the plot may have been subject to pledging for obtaining a loan from a bank. When such a loan is repaid, the bank will offer a Release Certificate, which confirms the payment of all dues. So, before buying a plot, ensure you get a copy of this certificate.

Property tax receipts

To ensure that you don’t land in trouble with the taxman, it is wise to seek the tax receipts of the past few months. This assures you that the property does not have any pending tax dues.

Approvals for Land Conversion and Use

Converting land to non-agricultural use has become necessary with the expansion of urban areas. This is frowned upon by the laws of many states. Thus, the buyer must ascertain the city’s master plan and ensure that the plot adheres to the city’s zoning plans.

Approvals for Construction

Buyers of residential plots must ascertain the layout and building plan as approved by the municipal authorities. One should check the government’s approvals for offering amenities such as sewage treatment, water, electricity etc, before signing the dotted line.

Issues of Connectivity

Whether for investing in a residential plot or an industrial plot in Panchkula, it is good to check the options for present or potential connectivity. The productivity, liveability or resale value of the plot will be much impacted by functional connectivity with public transport such as buses, trains, ports, highways etc.

Conducting Physical Verification 

Do not settle for verifying the property details only through the seller’s brochure. You must physically visit and assess the property before making an investment. One must also check all documents physically and subject them to official verification.

In sum, purchasing a piece of land is both financially and emotionally demanding, so one mustn’t make a blind decision. Pay a visit to the plot and consider all the above factors so that you don’t run into significant problems in the future.

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