Planning to buy a plot? Well here are some of the things that you need to look into before buying land.
- Once you identify the land you intend to buy, ask the seller for a copy of the parent document. If the seller is reluctant to provide this, proceed with this land with caution. Check whether the transfer of title gives the seller right over property.
- Get Encumberance Certificate(EC) from a local sub registrar office for the past 25 years(20 of them would be computerized and 5 years would be non computerized data). This can be got from the local sub-registrar office and helps to know whether the person who is selling the land is the complete owner of the land or not. It also might help you find out how the land was acquired, who sold it, etc. If he is not the proper owner of he land, then one needs to check whether the person who is going to sign on the purchase agreement has power of attorney. In some cases, the party that has power of attorney employs some other party to sell the property and sign on the purchase agreement documents. This is not allowed. Only the party with either the EC in his/her name or the power of attorney can sign on purchase agreement. You can also try applying for EC online using the link. Tamil Nadu EC Online Application. The next link might help you check status of your online EC application. Tamil Nadu EC Online Status
- Make sure you verify the Patta. This document has all details about the property size, history of property ownership, dimensions etc. It should be in the owner's name. If you intend to sell a land and need to obtain Patta, you can get it by going to the VAO office with your sale deed. Once application is filed, you will receive a challan. Your documents will be sent to the Taluk office for registration. This process takes anytime between 3 weeks and 2 months.
- Check whether the land has proper approvals. Check for Chennai Metropolitan Development Authority(CMDA) approval. Also, check whether the land you intend to buy is classified for residential use. Some lands are classified as farming, forest or commercial land and cannot be used for residential purposes. In such cases, you would need to apply for CMDA approval yourself which is a long and painful process. So, it might be a good idea to buy a pre-approved land. As an extra addition, in case of apartment complexes, check whether proper donations of land has been done to the government. In case it has not been done, there might be repercussions later.
- Check whether the documents are right with the help of one or two lawyers. Read through the document yourself and ask for any pointers or help from the lawyers in understanding anything that escapes you. No one will work as hard as you would when dealing with your money.
- Check whether the roads and park areas have been handed over to the local governing bodies through gift deed.
- Check whether the connecting roads and abutting road has been maintained well by the local body.
- Do not trust banks. Just because a bank approves your loan does not necessarily mean that the land is clear. I have sen many people feel safe when the banks provide loans. However, sometimes private banks provide loans after which all responsibility lies with the borrower. Be sure that your documents are right before approaching the banks. However, if banks do decline loans then one can suspect that something might be wrong. Bank will give a percentage of the guideline value as loan. The guideline value can be checked here. Tamil Nadu Guideline value check
- One can check the soil type of the area to confirm whether the property has some toxicity or if water is suitable for consumption. It might also give you an idea whether the land will be appropriate for bearing a construction upon it.
- You might also prefer to look at the land in rainy season(observe whether there is some water stagnation problem).
- Check whether the land is farmland/agricultural land (Nanjai or Punjai land). It is preferabler to not purchase a farmland or agricultural land.
This list is not exhaustive. I am sure I missed quite a few points. However, I hope this helps people who are planning to buy land. If you have any further questions, please feel free to post them in the comment section below and I will get back to you.