Many people dream of owning land and building their homes. The process of buying a property requires a lot of capital. Any mistakes can lead to a lot of financial trouble for the buyer.
It can be tough to buy a plot, especially when so many people make fake documents or other forgeries. When reviewing property documents, it is essential to be cautious.
1.Document verification
Verification of documents is the first tip in our 11 tips to help you buy land. This may sound like a nightmare, but it is essential. If you want to avoid future problems, this is an absolute must.
Title deed:
It is your responsibility to insist that the seller gives you a clear title deed. You must verify that the land is still in the owner’s hands and they have full rights to sell it. You should also confirm that they are the sole proprietor of the land. Please double-check the photocopy with the original deed while you are receiving it.
Encumbrance Certificate or EC:
Next, verify the EC. You must verify EC for at least 12 years and if possible, 30 years. (20 of these years would be computerized while the remaining years would not be).
This document is available at the sub-registrar’s office where the title-deed has been registered. This document can determine if the plot is in good standing with the court and if there are any unpaid dues. It also allows you to find out the land’s seller.
Ensure that the person signing the purchase agreement is the legal owner. Often, the power-of-agent person often employs another person to sell the property or sign the purchase agreement documents. This is illegal and should not be permitted. Only a person with the EC or a power of attorney can sign the purchase agreement.
This link is a free online tool to check encumbrance in Tamil Nadu.
Property tax receipts
You should verify the tax receipts, such as a vacant tax on the property. Ask for the originals to ensure you are comfortable with the situation and avoid any surprises or legal problems after purchasing the land.
Release Certificate
This certification must be verified if you’re buying a property up for resale. The bank will issue this certificate to show that all loans have been paid.
Local approvals
You should ensure that you have the permission of the authorities to purchase the land plot.
NRI seller
If the land owner is an NRI, ensure you obtain the Power of Attorney (POA), from the seller.
Patta chitta, FMB sketch
Here are some tips for buying land
Before purchasing a piece of land, you must verify the documents
Patta provides details about the property’s size, history, and dimensions. It should be in the name of the owner.
This Patta must be verified. Also check the Chitta (Field Measurement Book), and FMB sketch (Field Measurement Book).
NA(Non-agricultural) order:
Last, you should check the NA (Non-agricultural Land) order. This means that all land in India is considered agriculture land unless the government has designated it for another purpose. You heard it correctly. It’s pretty interesting, isn’t it?
Before you can build any type of building (Residential, Commercial, Warehouses or Industrial), it is necessary to convert the land to nonagricultural land (NA).
There are many types of NA.
- NA – Residential
- NA – Commercial
- NA – Warehouses
- NA – Resort
- NA – IT/ITeS
You can’t build on land that has NA. Check to see if the land is part of the residential plan. A commercial, warehouse, or resort development cannot be used to build a residential home. Residential NA is only allowed for residential buildings. The same applies to all other NA’s.
Before you proceed, ask for a copy NA – Residential Order issued by the Town Planning Authority. Refrain from believing anything the collector calls NA approved plots.
2.Verify the identity and authenticity of the seller
Before purchasing a piece of land, you must verify the documents
You should confirm the seller’s identity, just like you would verify the title deed to the property. Double-check the owner’s information if an agent has sold the land/plot. Ask for the owner’s details and their identity (Aadhar card, for example). Buyers should ensure that the seller is allowed to sell the property.
These documents can be used to verify the seller’s identity:
- The seller must provide proof of residency and his nationality.
- If the land/plot is jointly owned, identify all owners.
- No matter who the seller may be (a company, partnership firm, or an individual or group of individuals), ensure that the person signing and registering the sale deed has the proper authorization.
- You must get the Power of Attorney (POA), from the seller if the property is owned by a minor, person of unsound mind, or NRI.
Checking ground realities:
Before purchasing a piece of land, you must verify the documents
It is now time to get down to business. Before you buy land or property, here are some things to be aware of.
3.Measurement of the land/plot
A survey is required to confirm the dimensions and extent of the plot. It is essential to determine the area of the land before you buy it. This will prevent any unauthorized person from using the property.
4.FSI(Floor Space Index) :
Before purchasing a piece of land, you must verify the documents
This may differ for each locality. If we consider Chennai within the Chennai limits, each locale will have a different FSI value.
The maximum buildable area in a 1000 sq. ft land area would be 2000 sq. ft, considering the maximum FSI (i.e., 2. In Chennai. The FSI value can also be as high as 1.5 or 1.75 in certain areas. To get the best possible return on your land, ensure it has a high FSI.
5.Access to a drain connection in the area
Make sure you check if there is a drainage connection in the area. You will need to install a septic or water recycling tank, which will add cost to the construction.
6.Distance from plot for electrical lines
Before purchasing a piece of land, you must verify the documents
You should check whether the electric lines are present. If an electrical pole is located 100 feet from your ground, you will need to pay a fee to Tamilnadu electricity to install an electricity pole nearby your plot. This additional cost will add to your purchase price.
7.Is this a new area?
Before purchasing a piece of land, you must verify the documents
It is worth checking if the ground is in an area being developed. When building a house, it is important to increase the foundation height.
Also, check the level of the land from the road. If it is lower than the road, we must raise the land and foundation heights. This will add cost.
If the soil has been filled with soil to increase the plot’s height, it is also a problem if a developer/builder newly developed the plot. You may need to lay a pile foundation to construct your home.
Ex: Some places will have a natural ground level 5-6 feet below the road level. The developer would then have filled the soil with soil to increase the plot’s height. Normal house construction will require a foundation depth 6-8 feet below the natural level. Natural ground level is approximately 5-6 feet below the foundation depth, so we need to dig 6-8 feet further. The foundation depth is approximately 12-15 feet. Pile foundation is the only option.
8.Type of soil for that plot
Before making any decisions, ensure you know what type of soil it is. It should not be clayey soil. If it rains water isn’t absorbed easily, so mosquitoes breeding occurs. Also, the soil’s bearing capacity will be lower than other types. This increases the foundation cost.
Pile foundation is required if the soil has a low bearing capacity. This will add to the cost of normal foundation.
9.Underground water level and water hardness
It will cost you less than Rs. 2000 to check the water level on the plot before finalizing the purchase. Since we will likely spend lakhs to buy land, it is better to spend small amounts to ensure water availability.
Ask about the water quality and get a sample to test it. It can cause damage to appliances such as your washing machine or motor. Testing the water before you use it for any construction purposes is important. You can also treat it to make it safe for future construction. Low-cost portable devices such as can be used to test water quality.
You will need to desalinate the water or purchase water from lorries. If the water isn’t available or of poor quality, you must fill the sump daily. Even if you’re willing to pay high prices for water from lorries, water might not be available. Before you make any final decisions, be sure to check.
10.Potential growth in that area
You should verify the location of your plot and its growth. Do your research. You can buy in a highly developed area. This will save you money.
You should also check whether there are basic amenities such as a grocery store, hospital, ATM, schools and colleges. Are available in the area.
Before you make a decision, ensure that you have checked the potential growth of your plot.
11.After purchasing the plot, you will need to verify all documents.
- A sale deed is a document that a government-licensed Document writer has prepared. It must be registered at the office of subregistrar to make the sale take place. You are legally the property owner once the sale deed has been completed.
- Once you have registered the land, get the receipt for payment of stamp duty.
- The next step is to get your house plan approved. If you purchase a plot with approval one, you can skip this step. Otherwise you will need to apply for planning permission. This can be a tedious process. A professional can help you. I recommend this article to learn more about getting government planning permission.