How To Buy A Plot In India ?


Types of Plots :


Non Agricultural

Here we are talking about how to buy a non agricultural land.




  • Higher returns in the long term comparable or even better than equity markets.
  • Lower Property Tax.
  • No maintenance cost, tenancy issues.




  • Title Risk : this is an important part before buying a plot as you have to find out that the seller is the real owner or not, whether or not there are any third party claim or risks involved.


  • CLU Risk : is the risk of change in land use, so sometimes fraud developers cheat you by saying that he has got the approval of CLU.


  • Zoning Risk : suppose you bought a land which was quoted as residential or commercial land but it falls under forest zone or coastal zone. So it becomes very important to study the master plan of the area before buying a plot.


  • Physical Measurement : sometimes the exact area is less after the plot is sold.


  • Encroachment : there are risks of people taking over your land or taking some area of your land or plot.


  • Investment Risk : suppose you bought a plot which is far from city or development area because of which the value appreciation is very low.


  • Liquidity Risk : it is better to understand that a plot doesn’t gets sold immediately and is a long term investment minimum period to hold the plot is 5 years.


  • No Rental Income : there is no income from rent but only capital appreciation.




  • Government Authority or State Authority : it is the Government who takes care of CLU and all the development and maintenance of plot and thus no major risks are involved in Government land.


  • Private Developers : you can buy plot from developers who take care of CLU and other development, however in this case there is risk like title risk, CLU risk.


  • Private Individuals : an owner can sell his plot of land to you, he might sell you any kind of plot, but it’s important to measure risks here also.





Step : 1 Investment Research :


  • Investment horizon.
  • Look for areas with good infrastructure and development possibilities.
  • Study the news and market trends.


Step : 2 Property Search :


  • Online/Broker.
  • Compare properties and their prices.
  • Check connectivity of that area by metro, roads and proximity to industrial corridors.
  • Always choose premium locations.



Step : 3 Due Diligence And Document Check :


  • Physical survey of the plot for encroachment.
  • Clear title and no encumbrances. It always good to check online land records if you are buying from a broker or a direct owner.


Step : 4 Negotiation And Agreement For Sale :


  • You will assign a right Land Value after doing surveys and researches.
  • Then you will pay the 10 percent if agreed price to the seller.
  • After which you will sign the Agreement For Sale having all details of buyer/seller, property details, payment plans, structure for default payment,etc.




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