A 9-Point Checklist To Buying Land/Plot In India

By BankBazaar | May 23, 2017

A 9 Point Checklist To Buying A Land/Plot In India

Congratulations! By deciding to buy a piece of land, you’ve taken a step towards building your dream home! While we’re excited for you, we also want you to know more before making this crucial decision. Buying a plot of land is an important decision because it involves a lot of money, unless you’re filthy rich and don’t care about spending a bomb! Even if you fall in the latter category and have piles of currency notes lying all over, you might want to invest it carefully.

Additional Reading: Your Guide To Buying A Second Home

Before deciding to buy a piece of land, there are a number of things you need to analyse. Don’t worry! To simplify things for you, we already have a nine-point checklist ready for you. Here it goes:

Ensure That The Seller Actually Owns The Land

Even if it is love at first sight with the sought after piece of land, it’s better to confirm if the seller/builder actually owns it before taking any hasty decision. There have been numerous cases of fraud and you need to be really careful when it comes to these intricate details. Check if the seller has the legal rights of selling it. Ask them to show you the papers; don’t believe just their words! Don’t know much about this? Better get legal help.

Check If The Owner Opted For A Loan To Build That Project

You need to check with the owner to see if they had taken a loan to build the project on the piece of land. Don’t worry! If they have, that’s not a bad sign. The project has gone through legal checks and that’s why the bank would have granted the loan. Check if the loan has been repaid. If not, buying that piece of land could get more complicated.

Check The Floor Space Index (FSI) Of Your Plot

Before starting the construction of your house, you obviously need to have a clear idea about on how much land can you actually construct there. To get that idea, you need to enquire about the Floor Space Index (FSI) of the plot. It primarily depends on the location of the plot. For instance, even if you buy a large plot of land and the FSI is really less for that location, you won’t get to construct much and will basically end up wasting a lot of your precious plot space. You obviously don’t want that to happen, right?

Ask For The Non-Agricultural (NA) Order

Did you know that all land in India is agricultural land by default, unless the government has listed it for some other purpose? See! That’s why you need us! While buying a plot of land, it’s therefore absolutely essential to enquire if the plot you’re planning to buy is non-agricultural. Wait! That’s not it. Non-agricultural land has many types—for commercial use, for resorts, for IT parks, for warehouses and for residential purpose. It’s obvious that you need to see if it’s okay for residential purpose. You don’t want to illegally occupy a piece of land and break the law, do you?

Additional Reading: 5 Best Locations in India to Invest in Land

Check History Of The Land

In some states, it is essential that you check the ownership of the land in the past decade. The ownership should have been properly passed on and there should be no gaps in between. This will help ensure that there are no disputes over the land in future.

Find Out When You’ll Get The Sale Deed

Don’t merely trust the ‘agreement of sale’ document. It doesn’t prove that you’re a valid buyer – it just signifies that the buyer and the seller have both agreed to the terms and conditions. You, therefore, need to get the sale deed, which is a legal proof of the sale. To get it, you need to register the sale in the sub registrar’s office. Once that’s done, you become the legal owner of your plot.

Calculate The Annual Maintenance Charges Of The Plot

Your work doesn’t end with buying the plot and getting the sale deed – you also need to pay for the maintenance of the plot/building. Why? For the upkeep of various facilities like gardens, water, security etc. Now that you know of these, it’s better that you calculate them beforehand.

Is The Plot Well Located?

One of the most important things that you need to look out for is the location of the plot. You might have the idea of reselling the plot in future. To get a good resale value, the plot needs to be well located. Also, don’t forget to check if the plot is located on a flat piece of land! You don’t want small hills on your plot, right?

Check For All The Basic Amenities

Before signing the sale deed, you must check if all the basic amenities are available or not. These include water, electricity, the roads around, security and fencing of the plot. You want your future house to have a reliable power supply and good connectivity to the city.

Additional Reading: The Beginner’s Guide To Taking A Home Loan

Buying a piece of land in India can be quite complicated if you don’t know the basics. With this ultimate checklist, you’re less likely to go wrong. Now that you’re fully equipped, it’s time to take the first step towards your dream home!

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10 thoughts on “A 9-Point Checklist To Buying Land/Plot In India

  1. sumit

    I hereby read full blog. You have shared very nice information about buying a land plot in India.

    Reply
    1. Team BankBazaar

      Hi Sumit, Glad we could be of help. Keep reading! Cheers, Team BankBazaar

      Reply
  2. Sumit

    Excellent points, These points will help the buyers to understand every single bit of how to buy land/plot area.Thanks for sharing! 😉

    Reply
    1. Team BankBazaar

      Hi Sumit,
      Glad you liked the article. Keep reading!
      Cheers,
      Team BankBazaar

      Reply
  3. Saloni Mehta

    Welcome, I am looking for a blog which will focus on complete real estate investment guide for NRI. Can you please provide the link if any ???

    Reply
    1. Team BankBazaar

      Hi Sonali,

      You are most welcome. Keep reading our blog for more insights into the world of finance.

      Cheers,
      Team BankBazaar

      Reply

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