Planning to buy plot? Complete Guide to invest in property with land rights | 10 Simple Steps to avoid fraud

Planning to buy plot? Complete Guide to invest in property with land rights - The land is still seen as a tangible and secure investment portfolio by Indian households, nuclear or joint families alike. As soon as a family attains a certain financial solidarity, their first line of thought is to invest in land and secure the future of kids and the coming generations.

Potential market for plot investment

Large sections of real estate buyers have grown a natural liking or affinity towards plot investments. While plots are individual tracts of land up for sale with demarcations and no added facilities and amenities. Villages, small towns, and peripheral areas are enormous markets for plot investments. 

Ashwani Kumar, Pyramid Infratech, said, “With the enactment of the RERA Act, the process of plot investment has become much more transparent and efficient. If one is cognisant about his or her land rights and thoroughly checks essentials like Title Deed, Encumbrance Certificate, Original Land Deed, and NA order, among others, one can easily make informed and verified plot investments. Plots have a solid appreciation level and are considered valuable assets of ownership. Its use is multifarious, and there is considerable growth in customers who wish to invest in plots.”

10-point Guide to avoid fraud while buying a plot

1) Groundwork research is as essential as document verification. Individuals should ensure that the project has basic amenities like sewerage, electricity connections, roads, schools, hospitals and public transport.

2) Individuals can take help from consultancies which provide services to conduct surveys, provide definite results as to whether a plot justifies its price and capital appreciation levels in future.

3) Buyers can also take the help of a lawyer to assess the accuracy and truthfulness of the documents.

4) Thoroughly check Title deed which provides veracity to the deal.

5) Obtain a Encumbrance Certificate from the sub-registrar’s office

6) Obtain a Non-Agricultural Order (NA Order) which is one of the most important documents. An NA order validates that the land is non-agricultural land.

7) You can also hire surveyors for land measurements and floor space index of plots. 

8) Buyers should do research on the capital appreciation value of a plot to ascertain the return value.

9) Ensure that the project has been approved by RERA.

10) Land should neither be mortgaged nor there should be a loan against it.

Plotted developments gain traction in cities

Plotted developments have gained immeasurable traction in cities. Real estate consumers are attracted to plotted developments owing to the slew of facilities it offers.

Plots nowadays are developed within gated societies in likelihood to high-rise apartments or independent floors which guarantee privacy and 24 hours security. Much to the user’s convenience and also to increase the livability quotient, plotted developments are planned with a range of amenities like a Gymnasium, Meditation Area, Kid’s Play Area, Reflexology Garden etc.

RERA boosts credence in dealings

With certitude, one can say that investing in plots can be a daunting or rigmarole process. However, with the introduction of the Real Estate (Regulation and Development) Act 2016, there has been a boost in the credence of plot dealings and transactions.

Many real estate experts foreground documentation procedure as the most important step in plot investments. 

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Mr. Rajesh K Saraf, MD, Axiom Landbase, said “Groundwork research is as essential as document verification while investing in plots. Buyers should clearly know whether a plot would be sufficient for their use. Plot investors also get professional help at times. There are many consultancies which offer customised services to conduct surveys, map out strategies and provide definite results as to whether a plot justifies its price by squaring off its usability and capital appreciation levels in future.”

Talking about the same, Ritu Ahlawat, CEO, Investin PRO, said, “Anybody who has the desire to invest in a plot must have a check for a few essential documents and should not compromise on that whatsoever. Title deed is the most critical document. It establishes that the seller of the plot is the undisputed owner of the plot and has the right to sell it as per his volition. An educated buyer should accept any photocopies except a legitimate title deed document. It provides veracity to the deal and trumps the possibility of any mendacious act.”

Buyers can also take the help of a lawyer to assess the accuracy and truthfulness of the documents provided by the seller. You can also ask the plot owner to produce previous title deeds to establish firmness.

An equally important document is the Encumbrance Certificate. Encumbrance Certificate affirms whether the property is free from any legal tussle or dispute. The easiest way to obtain it is from the sub-registrar’s office. It is the same place where the registration of the sales deed of the land had taken place.

Non-Agricultural Order (NA Order) is an important document. NA Order officially terms a land as non-agricultural. Before the commencement of any type of residential or commercial development, a land must be converted from agricultural to non-agricultural.

An NA order validates that the land is non-agricultural land. There are many types of NA orders NA – Residential, NA – Commercial, NA – Warehouses, NA – Resort and NA – IT/ITeS. A NA- Residential order should be procured from the seller before finalising any deal. If the plot owner happens to be an NRI, one can also ask for Power of Attorney (POA) from them.

Post document verification, buyers should conduct prudent groundwork. Many buyers end up hiring surveyors for land measurements and floor space index of plots.

The Floor Space Index (FSI) of the land allows buyers to know to what extent they can do construction on a particular piece of land. Buyers should do research on the capital appreciation value of a plot to ascertain the return values it would give after a particular period of time.

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