How To Select The Right Plot

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Tips To Purchase Right Plot - JK Cement

Buying a piece of land is one of the most lucrative ventures in India. With the rapid urbanisation and increasing demand for real estate, purchasing a plot has become quite challenging nowadays. Whether you are planning to build your dream home or seeking a long-term investment, making an informed decision is essential. Purchasing the right piece of land requires careful consideration and due diligence. Read on to explore the essential tips to purchase a plot.

Tips to Purchase a Plot

When it comes to buying a land parcel, you should conduct a comprehensive location analysis. It helps you to make the right decision that aligns with your objectives and safeguards your investment. Once you are satisfied with the location consider the following factors before finalising any land deal: 

Verify the Identity of the Seller

Ensure that the seller is the legitimate owner of the land and has the authority to sell it. Request identity and address proofs of the seller, and cross-verify the details to avoid falling victim to fraudulent transactions. 

Document Verification

The next plot selection tip is verifying the plot’s documents. Thoroughly examine all the relevant documents of the land including, title deeds, encumbrance certificates, property tax receipts, and possession certificates. Engaging a legal expert to scrutinise the paperwork can help identify any discrepancies or potential legal issues. Here are five documents that must be verified to avoid legal hassles later: 

The Mother Deed:

It is the primary document to determine the ownership of property. It tells you how many owners the plot has had and provides their information.

Power of Attorney:

If the seller of the land is not the owner, the seller must have a Power of Attorney (POA) that proves that the seller is legally authorised to sell the property. 

Sales Deed:

It is a legal document used in real estate transactions that records the transfer of land ownership from the seller to the buyer. You can get it validated at the sub-registrar’s office.

Encumbrance Certificate:

It provides a record of all the registered transactions related to the property. The certificate serves as proof that the property is free from any legal or financial liabilities and ensures that the land has a clear title.

Check the Floor Space Index (FSI) 

FSI refers to the maximum permitted area that a builder can construct on any given piece of land area. It is an urban planning and zoning parameter used to regulate the density and intensity of development in a particular area. FSI determines the ratio of the total built-up area allowed on a plot of land to the total area of the plot itself.

Check Conversions and Land Use Approvals

Always ensure to check if the land you are buying has received requisite approvals for conversion from agricultural land to non-agricultural use. This verification is imperative, as it confirms that the land is legally fit for construction purposes. 

Check Construction Approvals 

Investigate whether the land has received the required approvals for construction from the municipal body. Construction approvals issued by the government enable necessary amenities such as water, electricity, drainage system, sewage treatment and parks. Make sure to check that the land is free from any hindrances, as obtaining building permits can be a challenging task sometimes. 

Check Land Connectivity 

Evaluate the accessibility of the location. Check the proximity to major roadways, highways, and public transportation systems. Easy connectivity to major business districts and city centres is important for both personal convenience and potential rental yields. 

Physically Verify the Plot 

Do a personal inspection of the land. Visit the site to verify the boundaries, topography, soil quality and any potential environmental concerns. Physical verification helps you to make a well-informed decision and visualise your project better. 

Learn About the Maintenance Requirements

Find out the maintenance fees or community charges that you may be obligated to pay after purchasing the property. Check whether the land is part of a residential society or a development project.

Types of Plots

It is essential to understand the different types of plots available for purchase: 

Residential Plots

These are suitable for building homes or apartments. These plots are often located in residential areas with access to basic amenities such as water supply, electricity, and roads. Residential plots are ideal for individuals or developers looking to build their dream homes or residential projects. 

Commercial Plots

Every city’s master plan includes designated commercial areas for the construction of shops, offices, showrooms, hotels, or any other commercial structures. Commercial plots are usually located in zones with high footfall and business potential. If you are looking for investment options, commercial plots are worth considering. 

Industrial Plots

These plots are in the regions reserved for setting up manufacturing units, factories, warehouses, or industrial facilities. Industrial plots are attractive options for businesses looking to establish industrial facilities. 

Agricultural Plots

These plots are often located in rural or semi-rural areas and are meant to be utilised in agricultural activities like crop cultivation, horticulture, or animal husbandry. Note that using agricultural land for non-agricultural purposes requires specific construction approvals and conversions.

Estimate House Construction Cost

If you are buying the plot to build your dream house, estimating the construction cost becomes crucial. The construction cost varies significantly due to several factors, such as location, size, quality of materials, design, and labour expenses. You can use an online cost calculator to get an approximate estimate. However, it is recommended to consult with experienced architects and builders to get a detailed cost analysis based on your specific requirements.

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What is a land title deed?

A land title deed is a legal document that proves the ownership of a property or land. It contains details of the property, its boundaries, and the names of rightful owners. It serves as evidence of ownership and is essential for property-related transactions. 

What documents should I verify before purchasing land?

You should verify the mother deed, power of attorney, sale deeds, encumbrance certificates, and Khata certificates (in Karnataka). Ensure that all documents are legally valid and free from disputes. 

How do I assess the potential growth of the area before purchasing land?

Research upcoming infrastructure projects, commercial developments, and government initiatives in the vicinity. Verify from the local authorities and residents of the area to get an idea about the potential return on investment.*Disclaimer: The information provided above is for general purposes and should not be used as a substitute for professional advice.

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