Check these before you buy that piece of land

The first check to be done is whether the land has a clear and marketable title.

Next,check the right of the seller over the property. See the title deed of the land which you are going to buy. Confirm whether the land is in the name of the seller and that the full right to sell the land lies only with him and no other person. One should get the original deed examined by a lawyer.

The third important step is to confirm that the land does not have any legal dues. It is available as a certificate called encumbrance certificate from the sub-registrars office where the deed has been registered,stating that the said land does not have any legal dues and complaints.

Research any contingencies,which may hinder the development of the property. Determine if the plot of land has the necessary infrastructure to build your home,right to build a public road or accessibility to the land.

Ensure that planning permission and building approval has been obtained from the concerned authorities.

Check whether the road around the plot has been maintained by the local body or has been handed over to the local body.

Verify whether the layout has been approved by the concerned authorities. Also,verify the land-use zone as per master plan for the plot. A land survey done at the time of purchase will help you in the case of any legal disputes over property boundaries,titles,easements and other issues. It is advisable to measure the land before registering the land in your name. Ensure that the measurements of the plot and its borders are accurate.

Before buying a plot,it is important that one be clear on the purpose: whether it is for investment or whether it is for immediate construction.

Following are some important things one needs to consider before buying a plot for constructing that dream home or villa.

Check your pockets

The first and foremost thing is to check your budget. Unlike buying a house or apartment,it is important to set out your budget in advance and work out the costs from the beginning. It is also important to set aside some surplus cash as unforeseen cost.

Location

Choosing the location of plot is vital if you are planning for investment or constructing an house to let out for rent. Proximity to a commercial hub or city centre is always the best location. Check out if there are good schools,hospitals and transport facilities; proximity to bus stops,railway stations,banks and supermarkets. Check for rate of property currently going on in that location by asking few people or agents,so that you dont end up putting up more money in the deal.

Contact the Right Advisors

Real Estate professionals provide you with listings of plots and property for sale. You can also seek assistance from your friends,relatives or local realtors to find a plot in your budget and in good location. It is important to contact responsible people who can guide you with right property and help you with

legal documentation.

Loan Assistance

You can get loan for both – buying a plot and for construction. Banks and financial institutes offer land loan for purchasing land for both construction and investment purposes. One thing that you must

remember is that there are no tax sops if you take a loan to buy a plot of land. Banks and financial institutions offer home construction loan,if you are constructing a house on that plot of land.

Tax deductions

If you are buying a plot for investment purpose,there are no tax benefits on a loan. However,if you want to construct your own house,you can get a tax break only in the year in which the construction is completed. l

Author is Managing Director,Bajaj Capital