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http://nripro.com/dp/pune_plot_purchase_precautions_and_tips
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http://nripro.com/dp/pune_plot_purchase_precautions_and_tips
architect, contractor to construct the house or must go through the seller/developer for that. We have seen cases where seller/ developer requires you to
hire their services and charge higher rates or base the cost on the saleable area (it does not make sense to pay contractor based on saleable are, you lose
the benefit of constructing on your own).
If the seller had recently converted agricultural plot into NA, make sure there are no outstanding fees/ dues/ taxes for such a conversion (because
government will ask new owner to pay the same, and you will have to recover from the seller, most likely seller will not pay, and it becomes a legal issue).
Avoid sellers in hurry or rushing through the process they are probably covering up land status or ownership related issue (typically they would offer
cheap rates or deep discounts for cash payments and closing the deal early).
Payment in installments is good idea when purchasing plots (that is indication that seller is stable, and is not anticipating any risk), although it is not a
guarantee that there is no risk. Your risk is limited to payment you make vs. entire payment.
There are margin restrictions on plots, that is need to leave some space from the boundaries of the plot. These restrictions put limitation on the plinth
area, and thereby can limit overall carpet area.
Many a times developers do not have necessary approvals for all the survey numbers in the project, buyer needs to make sure entire project, i.e. all the
survey numbers are approved, and particularly the plot they are purchasing. Not having approval for entire land covered by the project is big risk hence
should be avoided.
Geographical and physical factors:
Elevation: make sure the plot is on relative higher elevation to avoid flooding during rainy season. Another point about elevation is, if the plot is on
slope, it is possible that trash/ mud will flow towards it from higher elevations, more so when the land at higher elevation has houses/ buildings.
Make sure the plot can be used for construction of house or structure there would be patch of plot that has rocks that make it impossible to lay
foundation (it is very expensive to lay foundation on a rocky plot)
Make sure the plot gets natural light, pure/pollution free air
Make sure the plot does not have mosquitoes, insects, and flies
Make sure there are no heavy industries, chemical plants in surrounding areas
Level: Make sure that plot is of even level (no ups and downs, variation, no slope). Plots that are not leveled required additional expense to level them
or it becomes difficult to fully utilize these plots.
Rivers/ water: Avoid plots adjoining rivers, any other natural water source. Also, avoid plots near marshy land.
Avoid plots surrounded by buildings you wont get privacy and it looks very odd to be staying in such place. It is tricky situation if you are buying
independent plot (i.e. not part of a bigger scheme/ project). Because you dont know what is going to show up next to the plot in few years.
Find out access roads, and paths. We have seen cases where plots were sold w/o having legal access to the plot (i.e. at the time of sales, the seller goes
through a road that looks like normal/ common road), but subsequently discovered that the road is a private property and there is no legal understanding
to use the road to access the plot.
Avoid plots that are sold under proposed road at the time of purchase the plot must have proper, legal road to access the property.
Keep in mind safety aspects the plot may not be safe when you buy it, but think about what would be the picture in 2-5 year timeframe (or timeframe
that you have in mind) it must be safe to stay by then.
In case you decide to buy, make sure sale deed include exact location of the plot, dimensions of the plot, and map of the area indicating exact location
of the plot.
Basic infrastructure:
Find out if plot has basic infrastructure such as water connection, sewage, electricity connection.
Loading: Find out if the seller is adding any loading on the plot. Many a times they charge loading as high as 11% to cover other facilities provided
(e.g. club house, internal road, etc). Ideally you should be paying based on net area that you get. At the least find out what is your effective rate.
Effective rate for plots is calculated as gross payment divided by net square footage. For example, if seller is selling 5500 sq ft plot at rate of Rs. 700 PSF,
you will be paying 5500 x 700 = and dimensions of area that you are getting is 50x100= 5000 sq ft, then you will be paying Rs. 38,50,000. Effective rate
= 38,50,000 / 5000 = Rs. 770 PSF.
Find out how much is the ongoing maintenance charge for the infrastructure and what are the onetime charges to get idea of the hidden charges
If the plot is part of a project or scheme, get the approved plan for the scheme, note location of each and every facility, and infrastructure (e.g. location
water tank, generator, inverters, common parking space, gardens, etc). Sometimes developers make changes to these and that may not be favorable to
the plot you are looking for, having an approved plan in writing will ensure you have some legal remedy in future.
Valuation Research (you can do this online as a beginning):
Find out what are resale prices in the same area for similar plots, many a times you would find resale plots at better rates than first sales
Find out how many plots are available for sales in same scheme, and same area
Find out what are the prices for constructed properties (e.g. housed built on plots) in same area
Find out what is rental situation in the area (e.g. what is going rate for rental properties such as independent houses in same area, how many of the
units are available for rate, etc)
Status of buyer:
NRIs cannot own agricultural properties in India (note that farm houses are type of a agricultural property)
NRIs can own non-agricultural (NA) land in India
Avoid schemes that promise you agriculturist status in case you are an NRIs
If you are an NRI, consider buying the property in name of your blood relatives who have agriculturist status (i.e. they have their name on agricultural
land as per 7/12 Utara) and from whom you can inherit the land
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Feel free to email us at info@nripro.com. We will be happy to answer your questions, promptly. Your valuable feedback to improve our services is also
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1/20/2015 10:03 AM