Offlate people have started thinking about investing their money in lands. I too think that to be a wise decision only! As most of us know buying a land in chennai (for that matter any where in the world) isn't an easy affair.
I was just wondering what all one needs to look at before deciding to purchase a land. I thought I would put down what ever I know about this subject here.
[Guys pls free to correct me if I my understanding is wrong somewhere. That way, it would help me understand as well as others who might read this in future].
Here we go ...
1. One should not buy farm lands if they want to build a residential house sometime later there. Because to my knowledge its illegal to build residential houses on lands meant for irrigation.
2. Encumberance Certificate -- This is what is shortly refered as "EC". One needs to get an EC from local sub registrar office (i guess we need pay a small amount for this). From this we / our lawyers :) can find out whether the guy who is planning sell the land to us is the "complete" owner of that land. If at all he is not the single owner of the property then he should have proper "Power of Attorney" granted by other co-owners.
3. One should verify the patta. This document would have details about property (length, width etc.,) and the survey number of the property.
4. Before buying a land check whether it has CMDA approval? (I am not sure what sort of approval one would get if they buy it outside chennai limits? May be Panchayat!?!)
Fyi, CMDA - Chennai Metropolitan Development Authority
5. Always better to involve a good / genuine lawyer in these process. Lawyers normally verify the EC, patta and cross check whether the copy of documents he have matches with that of the original document OR has it been tampered by somebody :). If the lawyer is satisfied we can be rest assured that we have choosen a good land only!
6. Now-a-days i think there are banks which lends loan for purchasing lands too. For ex: State Bank Of India, HDFC and Sundaram Finance. If possible its better to purchase via a bank loan; that way, bankers would be doing the background check and based on that only approve it.
7. You might want to do a soil test OR get an expert advice from some good civil engineer. Who know some 5 or 10 yrs back that land could have been a small pond :) So you might want to check before buying on whether this is suitable for constructing a house or not.
ppl i am done with my points. Now I am looking forward for your comments to know whether I have missed out something.
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