Eyeing healthy returns on investment on RERA approved plots?
It is a well-known fact that plots score better than other property types in terms of returns. Thus, if you manage to strike a decent or rather ‘safe’ deal, buying a plot is often a rewarding purchase considering the rising property prices.
But before you finally take that bold step in high heels, there are some vital factors to be considered to make sure that you simply are handling the right seller and investing in a plot approved by the city planning department or the concerned authority.
This is a big reason once you plan to buy a residential plot. First, it must be easily accessible to the prominent areas of the town. Make sure you are not lured by cheap deals at faraway locations. The location could also be an enormous factor when it involves getting great returns on your investment too!
Value of the RERA approved plots
Do not rush and buy a residential plot hurriedly, even if the deal seems great. It is advised to spend a while researching the worth of land and other advantages, before buying it. You can also consult a real realtor to assist you with this task so that you create an informed decision.
Property documents checklist
It is a settled judicial principle that an individual cannot convey a better title than what he has. As a primary step, the customer should undertake due diligence, to determine the existence of the title with the vendor, the character of the title and its marketability, and the ability of the seller to convey a clear and marketable title, free from encumbrance.
Documents, for 30 years, if less (and where documents aren’t available, for a minimum period of 12 years), must be examined and the seller could also be called upon to provide the following documents/information:
Title documents of the property of RERA approved plots:
Government order for grant, succession certificate, sale deed, gift deed, will, partition deed, etc., evidencing the transfer of title over the years, culminating within the vesting of property with the vendor.
Nature of title:
Leasehold, freehold, or development right.
In the case of the vendor claiming development rights to the property, the development agreement and power of attorney, executed by the owners in favor of the vendor.
- All title documents being duly stamped and registered at the office of the jurisdictional sub-registrar of assurances.
- Khata registered in the name of the seller.
- Information on pending or past litigation.
- Availability of original title documents with the seller.
Verify the builder:
One may often hear that ‘the piece of land is under litigation or another issue. Hence, it’s recommended that you do a cross-verification of the vendor (in many cases it’s the builder). You could verify the past or current projects by Land promoters in Chennai of the concerned builder or even post your queries on the online real estate forums. This will offer you some idea about the builder’s credibility and reliability.
Verify Title Deed:
Check whether the seller has a right over the Gated community plots in Chennai. The first step is to ascertain the deed of the land which you’re going to buy. Confirm whether the land is within the name of the vendor which the full right to sell the land lies with him and no other person. It is always better to urge the first deed examined by a reputed lawyer.
Check Encumbrance Certificate:
Before buying RERA approved plots, it is important to confirm that the land is free from legal dues. For this, check the Encumbrance Certificate for at least 30 years. Given at the Sub-registrar’s office, this states that the said land doesn’t have any legal dues and complaints.
Necessary Approvals by Local Body:
Verify whether the plot or the whole layout has been approved by the town Development Corporation and the local body.