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  • Benefits of Buying a Residential Land/Plot
  • Factors to Consider while Buying Residential Land/Plot
  • Documents to be Verified Before Buying a Land/Plot
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What is a Residential Land/Plot?

Residential Land/plot means a Land/plot allotted exclusively for residential purpose, residential Land/plot means a Land/plot reserved for constructing residential building in any scheme.

Benefits of Buying a Residential Land/Plot

If you are struggling to buy a property, particularly in the major cities where property prices are some of the highest in the country, buying vacant land does offer you an easier and more affordable way into the market. Vacant land is far more affordable compared to land that has already been built on. One tactic is to buy land today and build on it later when you have a larger budget, ensuring that you won’t be priced out of the property market in the future.
A great advantage of buying vacant land is that the land is yours and you can do whatever you want with it, as long as it’s within the limitations of the council’s zoning and building codes. You can leave it as it is, or build a home on the land tailored to you. Have a swimming pool at the back with an alfresco deck, or have a smaller yard and a larger home. There is always the option to sell it on to a developer or build a commercial property on it.
Another advantage for buying vacant land is the very low maintenance that is required, compared to keeping a property in good condition. You don’t need to worry about repair work, renovations or finding a plumber. Besides having to mow the lawn to keep the land in a reasonable state, there’s very little else you need to worry about. Vacant land also requires less of your time and less stress, making a land purchase a passive long-term investment purchase.
Buying vacant land also means that your rates, insurance and property taxes will be much lower than if you buy a property. If you are an investor, you also don’t need to pay a Property Manager to look after the land for you, or worry about finding or evicting tenants. As it doesn’t take a lot of money to get started, many of the vacant land purchases are for cash, which means there is the potential to eliminate mortgage lenders.
One thing to consider when buying vacant land is that the land will usually remain in the same condition in which you bought it in. The weather and erosion may have an impact, but generally over the long term, vacant land tends to appreciate very well.If purchased correctly, then your land could see significant appreciation. This usually happens if the land is in an undesirable area, but the area around it goes through some regeneration and becomes a far more desirable place to live. This is particularly true in areas which have been pinpointed for major growth centres and rezoning of land, which can lead to price hikes overnight.
If looking to buy vacant land, then a major advantage is the smaller amount of competition you will be facing, allowing you to negotiate to get a better deal.

Factors to Consider while Buying Residential Land/Plot

When buying vacant land, you should also consider its history and what the land has been previously used for as this could affect your plans and future use. You can get a topography and a soils report to ensure you can build on the land, whilst you should check that the land is 100% yours, and does not allow anyone to pass over it. You should also find out why the land is selling in the first place, as this could indicate that something is wrong with it, especially if it is being sold cheaply.
It’s best to buy smaller pieces of land compared to larger land lots, as the larger the land size, the harder it is to sell. You should also consider the shape of the land and whether it’s prone to flooding. It’s easier to build a property on a plot of land that is flat, than one on a hill.
You also need to consider whether your vacant land is connected to a road and can be connected to public utilities such as water, gas and electricity. In order for development to occur, the utility connections and sewerage needs to be in place.

Documents to be Verified Before Buying a Land/Plot

A Sale Deed is the core legal document that acts as proof of sale and transfer of ownership of the property from the seller to the buyer. A Sale Deed has to be mandatorily registered. It is important that before the Sale Deed is executed one should execute the sale agreement and should check for compliance of various terms and conditions as agreed upon between the buyer and the seller. Before executing the Sale Deed, the buyer should check whether the property has a clear title. He/she should also confirm if the property is subject to any encumbrance charges.
* A seller should settle all the statutory payments such as property tax, cess, water charges, society charges, electricity charges, maintenance charges etc., (subject to the agreement) before executing the Sale Deed.
Mother Deed, also known as the parent document, is an important legal document that traces the origin/antecedent ownership of the property from the start (if the property has had various owners). It is a document that helps in the further sale of the property, thereby establishing the new ownership. In case of absence of the original Mother Deed, certified copies should be obtained from the registering authorities. Mother Deed includes the change in ownership of the property, be it through sale, partition, gift or inheritance. It is very important that the Mother Deed records the references to previous ownership in a sequence and should be continuous and unbroken. In case of a missing sequence, one should refer to the records from the registering offices, revenue records or the recitals (preamble) in other documents. The sequence should be updated until the current owner.
With a vast amount of land being agricultural in nature in India, a Conversion Certificate is mandatory to be obtained from the legal body for the property. A Conversion Certificate is issued to change the use of the land from agricultural to non-agricultural purpose from the competent revenue authority. Further, the competent revenue authority requests the Department of Town and Country Planning to issue an NOC for the conversion of land for residential purpose. There are a certain set of documents to be submitted by the owner to acquire a Conversion Certificate. The documents required to obtain a Conversion Certificate are;

3 copies of the R.T.C extracts, Village map, land sketch, certified copy of the land tribunal, zonal certificate, Title deed, no dues certificate by village accountant and Mutation Records (MR) copy.
Khata is derived from the word ‘account’. It is an account of a person owning a property. It typically consists of (a) Khata Certificate and (b) Khata Extract. A Khata Certificate is mandatorily required for the registration of a new property and the transfer of a property. Khata Extract is nothing but obtaining the property details from the assessment registrar. It is needed while property buying and acquiring trade license. The Khata is widely referred to as A Khata and B Khata (Revenue records extract). ‘A’ Khata has properties listed under BBMP jurisdiction with legal property construction and ‘B’ Khata has properties under local jurisdiction with violated property constructions. One should avoid buying a B Khata property as it will be deemed as an illegal construction. Nevertheless B Khata may be converted to A Khata under certain schemes by paying penalty to the Government.
Encumbrance means charges in the ownership or liabilities created on a property that is held against a home loan as security. An EC consists of all the registered transactions done on the property during the period for which the EC is sought. Simply put, it is a certificate sought for a particular period evidencing the property purchase/sale, the presence of any transaction or mortgage. One should submit a copy of the Sale Deed to obtain an EC. A person applying for an EC should fill in the Form 22, affix a non-judicial stamp and submit it to the jurisdictional sub-registrar’s office. Complete residential address, property survey number, property location, the sought period, property description, its measurements and boundaries should be mentioned in the Form. A nominal fee amount will be charged on a yearly basis. The time taken to obtain an EC will be between 3-7 working days or more depending on the period sought.
Receipts for property tax bills ensure that taxes for the property are paid up-to-date to the government/municipality. For properties falling under the BBMP jurisdiction, it is mandatory for property taxes to be paid up to date so a buyer could get a Khata issued in his name. It is therefore important for the buyer to make enquiries with the government/municipal authorities to ensure that all the dues are cleared by the seller. The buyer should ask the seller for the latest original tax paid receipts and bills and check the details of the owner’s name, the tax payer’s name, and the date of payment on the receipt. If the owner does not have the tax receipt, the buyer can contact the municipal body along with the survey number of the property to confirm the ownership of the land. Nevertheless, the buyer should also ensure that other bills such as the water bill, electricity bill etc. are paid up-to-date.

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