Purchasing land is a huge financial decision, and before any potential land purchaser gets any plot, evaluating the plot’s paperwork is one of the most important steps to take. Document evaluation helps buyers avoid potential legal issues, fraudulent transactions, and disputes down the line. This is how to examine plot paperwork before purchasing land and this will be a great resource for anyone buying land for the first time, as well as for NRIs.
Introduction :
Before purchasing a plot, it is necessary to examine the plot’s legal approvals, the history of who owned the plot, and any clearance from the government. Knowing the appropriate steps of verification can save the land investor from headaches, as well as make the investment land secure and safe.
Why Plot Document Verification Is Important :
Owning land that lacks the appropriate documentation can land the owner in a lot of trouble, such as:
- Legal issues
- Title problems
- Issues with registration
- Losing the money spent on the investment.
The owner of the plot will be able to rest knowing that the plot is safe to purchase, and that there will be no problems in the future regarding the purchase.
Check the Title Deed :
The title deed is evidence that there is a legal owner of the land.
- Confirm that the seller legitimately owns the property
- Check ownership in the last 30 years
- Stay away from owning plots with disputed or unclear title.
Check the Encumbrance Certificate (EC) :
An Encumbrance Certificate states that the land is free from:
- loans
- mortgages
- legal cases
Always check the EC at the Sub-Registrar Office for the last 15-30 years.
Ensure Layout Approval :
Make sure the plot has the following necessary approvals:
- HMDA Approval
- DTCP Approval
- RERA Registration (if applicable)
Legally approved layouts provide more safety & better resale value.
Look at the Registration and Sale deed :
The Sale Deed should:
- Be properly registered
- Belong to the same plot with the same size and boundaries
- Indicate the same survey numbers
Never depend on an unregistered agreement.
Confirm Land Use & Zoning :
Confirm the land is designated as:
- Residential zone
- Commercial zone
- Agricultural zone
Avoid plots in restricted zones or green zones.
Evaluate Property Tax and Other Local Documents :
Ensure:
- Property tax receipts are understandable
- Nothing is pending
- Property tax receipts are understandable
- Local municipal records Align with plot records
Engage with Legal Practitioners :
Always reach out to:
- Real estate attorney
- Attorney
They help in spotting the risks that are not obvious and help in being in line with the related laws in the locality.
🔍Conclusion :
It is not a choice to check the documents for the plot before purchasing the land. Buying a plot that is legally verified gives you a guarantee that you will not encounter any problems with the ownership. It will also gives you a peace of mind and will bring you good returns in the future. Verifying the documents will save you a lot of money and problems in the future.
❓FAQs :
Q1. Why is it important to verify documents before buying land?
Legal ownership of the land is maintained, claims can be avoided, and the investment can be protected.
Q2. Buying a land involves checking which documents?
Title deed, encumbrance certificate, layout approval, sale deed, land use certificate.
Q3. What is an Encumbrance Certificate?
It is an indication of land loans, mortgages and legal claims, if any.
Q4. Is it mandatory to have HMDA or DTCP approval?
Yes, the layout is approved to guarantee the legality of the land and to allow the seller to have a good price for it.
Q5. Is it necessary to have a lawyer when buying land?
Yes, a lawyer determines the dangers involved and ascertains the documents are real.
