Things To Know Before Buying a Plot | Important Checklist

Things To Know Before Buying a Plot

Investing in a piece of land on earth is the best investment. The golden words of Mark Twain, “Buy land, they don’t make it anymore,” still ring true with property values rising to new highs every year.

The land has always been an important aspect of a typical Indian investor’s investment portfolio. It is, after all, an appreciating item that also provides a sensation of ownership. Before the passage of the Real Estate (Regulation and Development) Act of 2016, rampant plot deals were frequent in Indian cities. Things have changed for the better now that strict regulations have been implemented. Having said that, caution is always advised while purchasing a piece of land in India.

I have put together a step-by-step guide to help you make a sound investment.

Location

It is crucial that you simply validate the plot’s location by taking into account how close it is to the town’s most important locations. Avoid being tempted by cheaper land in remote locations with the least development. Before purchasing a plot, make sure you do not take advantage of cheap offers in remote areas. This is a very important consideration before purchasing a plot. Connectivity to every basic amenities should be within walkable distance. When it comes to making good returns on your investment the location should be the priority.

The ground-work

Yes. The first step is to determine the plot’s dimensions.
The extent of construction on a piece of land is determined by the Floor Space Index

Approvals

Keep an eye out for the RERA number of the plan where you want to purchase your plot and inquire about it. Not only that, but you may also check the list of approved projects on the local planning authority’s website. The list of layouts that have been approved by the local planning authority can be seen there.

Ask for the LP number. It is issued by the competent town planning authority of local bodies after inspecting every technical aspect and checking whether the layout is safe for a real estate development.

Appreciation

Do your homework and invest in a plot that will provide you with a decent return on investment. . If you’re feeling brave, you might use the stock market method and buy an undervalued stock (plot) and wait for it to appreciate. Property investments are always valuable.

Know Who is the sanctioning authority

Before buying a plot, know who is the sanctioning authority of the plot. The developer must subsequently submit the layout plan to the planning authorities for approval. BMRDA, and other planning authorities are among them. The third and one of the most important steps in making a layout legal is if the construction is in accordance with the sanctioned plan.

When buying a plot, you should know who is the sanctioning authority of the plot. In Bangalore, there are 3 sanctioning authorities

• BBMP
• BDA
• BMRDA & town municipal planning authority

Conversion Order

The conversion certificate is a document issued when agricultural land is converted into non-agricultural land. It is very important to get the conversion order before buying a plot. If the conversion order is not valid, there will be a problem in sanctioning the loans. The use of agricultural land for residential, commercial, or industrial purposes requires permission from the relevant authority. Check whether the land you are planning to buy has the conversion order. The builder or the developer must obtain a conversion certificate from the competent authority.

Did you know that unless the government specifies otherwise, all land in India is used for agriculture? Isn’t it fascinating? As a result, before engaging in any real estate business, the land must first be converted to non-agricultural land (NA). There are many forms of NA that you should be aware of.

Betterment Charges

The Betterment charge is a Levy or a tax or fee levied on land where the authorities take up infrastructure development. Public infrastructure improvements result in an increase in land values, which is assessed by these districts. Before buying land, don’t hesitate to ask the seller whether the betterment charges are paid.

BDA – Bangalore Development Authority

The BDA was founded in 1976 and is governed by the Government of Karnataka. Land in Bangalore is zoned, planned and regulated by the BDA. Furthermore, the BDA plans urban development within the city based on the infrastructural needs of each area within the city. In addition to housing low-income individuals and economically disadvantaged sections of society, the BDA is responsible for providing affordable housing.

Due to BDA’s position as the largest land developer in Bangalore, it won the first prize in the 9th outstanding Bridge National Awards Competition organized by the Indian Institution of Bridge Engineers. Agaram, Lalbagh and Benniganahalli lakes were also restored by the BDA. Any other agency attempting to develop land in the core of Bangalore should seek the permission of the BDA.

Below is The Set of Guidelines to be Checked Before Buying a Plot

1. The BDA is the place to go if you’re a buyer or a builder looking for permission on building and layout plans.
2. The BBMP collects property taxes and maintains building layouts following BDA-approved designs. In addition, the BBMP supplies “Khata,” or documentation.
3. While developing land, the BDA offers particular standards for the development and maintenance of drainage, roads, and utilities.
4. The owner of agricultural land should contact the Deputy Commissioner about converting it to residential use. The layout plan must be approved by the BDA or the BMRDA, depending on the zone in which the property is located, to receive a stamp of approval from the Deputy Commissioner.
5. In urban Bangalore, the BDA is supposed to give a No Objection Certificate (BDA) while building on a piece of property. In rural Bangalore, you should approach the BMRDA.
6. There are two types of No Objection Certificates offered by the BDA (NOC). The first step is to confirm that the agency did not attempt to acquire that piece of property. The second step is to confirm that the BDA has approved the builder’s home layout plan. Prior to developing land, two NOCs must be obtained.

BMRDA – Bangalore Metropolitan Region Development Authority

BMRDA is an autonomous body responsible for planning, coordinating and supervising the development of Bangalore urban district, Bangalore rural district and Ramnagar district in Bangalore. The BMRDA plans and supervises land development throughout the Bangalore Metropolitan Area. BMRDA is headed by senior officials, and heads of different development agencies and departments. The BDA assists BMRDA by assisting with the changes in the Development Policies of the Bangalore metropolitan region.

RERA Provisions Must be Followed

There are certain RERA provisions that the developer must follow. In compliance with these provisions, the project will be awarded a RERA number. Do look out and ask for the RERA number of the layout before buying a plot.

Not just these, visit the website of the local planning authorities and check the list of approved projects. In it, you will find the list of layouts that have been authorized by the local planning authorities.

The laborious paperwork may appear to be a nightmare, but it is a requirement. The following is a list of documentation that you must obtain from the seller.

Title Deed: Title deed is a very important document to be checked before buying a plot . This document certifies that the seller is the sole legal owner of the property. A photocopy of the deed is not acceptable. Examine the original title deed once you’ve received it. The land must be in the seller’s name. Check to see if the seller has full rights to sell the property and is the single owner.

The Encumbrance Certificate, sometimes known as the EC, is the next item on our list.

This document is required to determine whether or not the plot is free of legal issues. You can obtain it at the sub-office registrar’s where the land’s Sale Deed was recorded. You have the option of taking EC for the last 13 or 30 years.

If you are buying a plot of land in Karnataka, you can check the EC online on Kaverionline

The Release Certificate is another one to add to your list, before buying a plot. This is only applicable when purchasing a resale plot. This is to check that the seller has paid off all of the property or plot loans (if any). The bank issues a release certificate, which is useful in the situation of the pledged property.

The ground-work

Yes. The first step is to determine the plot’s dimensions.

The extent of construction on a piece of land is determined by the Floor Space Index

Appreciation

Do your homework and invest in a plot that will provide you with a decent return on investment. . If you’re feeling brave, you might use the stock market method and buy an undervalued stock (plot) and wait for it to appreciate. Property investments are always valuable.

After Step 1 and Step 2, you need to arrange documents that you, as a buyer, should have for registration. These include:

   – The first stage, like with any property, is to draft a selling agreement between the two parties involved. The following items should be included in your contract

Particulars of the land

• Agreed cost of the land between seller and buyer
• The advance amount given by the buyer
• The period in which the actual sale should take place
• Cancellation Clause

The next step is to get the Title Deed written by a government licensed document writer.

Receipt from payment of stamp duty.

You can register the land in the sub-office registrars with the above-mentioned paperwork. The seller must produce his Pan Card and aadhar card or Form Number 16 when registering for land valued at more than Rs 50 lakh with TDS deduction. For the registration of the land, you will also need two witnesses.

The registration charges

During registration, you need to pay stamp duty charges, registration fees, and document writer’s fees.

Conclusion

We all know that buying a plot or property or property investments give us financial satisfaction. But don’t be in a hurry. Before buying a plot or land, make sure that you double check the above mentioned documents. Suppose, if you alone cannot handle the things, get the experts advice. If you are applying for the plot loan, the documents should be valid. If not, the banks will not grant the loan. Think a thousand times and make a smart move.

We have an in-house agent who is an expert in plots and lands- Mr. Govindraj MV. If you have any doubts regarding plot buying/selling don’t hesitate to contact him.

Frequently Asked Questions

1.Is buying a plot a good idea?

Ans. In India, land or plots have consistently produced higher returns. The value of your land will increase if it is located in an area with adequate infrastructure. It is a great way to save money and will ensure bigger profit in the future.

2. What should I look for when buying a plot of land?

Ans. Look for the established seller and ask for the RERA No.

3. Is it a good idea to buy plots in E auctions?

Ans. Yes. E-auction offers very affordable prices for the available plots