All you need to know before buying a plot- Get the house of your dreams and make a wise investment decision too!
Investors are often lured with the prospect of owning a beautiful house that has been built the way they envisaged it, replete with smiling faces and a bed of roses. What’s more, it’s not uncommon to find advertisements and billboards plastered with rosy pictures of happy families residing comfortably in homes that promise the moon and stars.
Most times it does work out but there are very many instances when it doesn’t always pan out like that. In the case of flats, there are innumerable instances when investors have been duped of their hard earned money by some fraudulent acts or sometimes the brokers and middlemen in between. In the case of plotted projects too there have been many cases where people have been cheated with falsified paperwork or incomplete documentation.
In either case, to the common man this poses a serious problem as not only has he been hoodwinked of his savings but also his dream of living happily ever after!
How best then does an investor safeguard his interests and take all the necessary checks before investing? Read through, we’ve rounded up documentation protocols that must be followed when you’re thinking of investing in a plot.
Avoid the Trap- Check the Title Deeds
While buying a plot it’s important to understand that there may be a good deal of paperwork that you’ll need to check beforehand. Of the other documents, the Title Deeds are one of the key papers you must diligently inspect.
Ensure you have duly checked the First off, request the said developers to provide copies of documents like title deeds, power of attorney, approvals etc and check the legal status of the land.
If necessary, run the documents through with a qualified lawyer. Consider his opinion and then move ahead with signing the sale deed.
The other thing you need to check is
The Encumbrance Certificate
While most people know that there are some properties that may have an encumbrance, which actually means a right to the property by a third party, few realise the importance of this document before it’s too late. The encumbrance certificate essentially states the legal status of the land and gives the details about the land not being under any sort of legal dispute.
Request for the encumbrance certificate of the past years (30 yrs.) just to be absolutely certain.As an additional step of verification, the investor must acquire the encumbrance certificate from the sub-registrar office where the deed has been registered and thereafter clarify the plots clarity in terms of the legal dues and complaints.
Tax receipt and bills
As an investor it is your right to demand the latest, original tax paid receipts which includes the Property taxes. Moreover, it is important that you must be diligent about checking the property tax receipts if it’s provided with the patta number of the landowner.
Run a thorough check with the municipality departments for determining outstanding notices, unpaid bills (utility and otherwise) or requisitions that are connected to the plot of land.
Release Certificate & Deed
If the developer obtained any loan on the land inspect the Release Certificate, which the developer will have with him as it is an important document issued by the bank proving that the loan on the land has been fully paid off.If there is a release deed, do check it thoroughly.
It’s easy to get overwhelmed with paperwork, however, do remember that your plot of land can be a real asset to you in your sunset years or it can serve a retirement home that’s nothing short of Arcadia. Just make sure that you’ve checked the finer points as well.