There’s a lot of active debate among home buyers about whether buying a plot is considered to be a good idea for a first time home buyer or is it perhaps more suited to a second home buyer. Arguments making a case for a plot being more apt for a first time home buyer state that he/she is looking more for financial stability rather than capital appreciation and secondly he/she is more interested in satisfying his/her emotional need to have a solid asset in his/her life that they can call their own.

In the case of the second home buyer, their consideration is a bit more unemotional, looking for a handsome capital appreciation and a utilitarian home that aptly serves the purpose of one’s family or as a retirement home when the need arises. However, upon analysing this a bit more carefully its easy to understand that the common factor between both the plot buyer categories is that of seeking a financial asset that’s worthy of their hard earned money and which will suit their needs irrespective of the age/ salary bracket they are in.

There is one common denominator that is vital to both these buyers, a point vital enough that becomes absolutely imperative- that of not investing wisely and getting trapped in a con sticky deal that’s similar to quick sand.
Considering all these factors most buyers prefer plots over flats as not only will you find that a plot suits both the buyer categories perfectly as not only does it offer financial windfalls but a stability that the buyer has entirely in control of his/her home. One that is not dependant on possession delays and ad hoc interest rate increments because you see a plot is also a whole lot more affordable too! Interest rate fluctuations don’t affect this segment much.
As mentioned earlier, there are a few guidelines that you must ensure firsthand before investing in a plot. Let’s take a quick look at some of the documents and checks you should know of beforehand-

1. Title

Checking the title is one of the most important things that you must do before you can begin with other document checks. It is not uncommon to find property owners getting duped by title frauds and errant developers who are in a rush to sell their plots before having ensured a clear NA title.

As a smart investor, you need to check if the developer is offering a clear legal title on the land besides which you will need to delve into the previous ownerships and check the status of the land for it being a government reserved land or otherwise, and finally look for any outstanding that may have been left unpaid over time. If need be contact a good lawyer who will check the title and ownership papers thoroughly.

2. Document checklist

Lets start with the checklist of documents, which as most people already know is one of the key documents that will throw light on the most significant aspects such as the Title, the Title Deed, Municipal Corporation approvals and so on. Here you will need to get your hands on the patta which can be obtained from the municipal/ revenue office. Take a copy of the original documents yourself; don’t just rely on copies furnished by the seller/ developer.

The Patta , Chitta, Adangal and Land tax receipt are akin to a revenue statement and will most definitely give you a clearer picture on the ownership, occupancy, land’s proof of rights, important tax receipts such as the land revenue receipts, allotment letter etc. In the case of Non-agricultural land, there will be an independent extract of its own, so be sure to get your hands on it.

Aside from this, the development agreement, the stamp duty document and the encumbrance and release certificate from the bank are important documents to check and go through. Do make sure that you seek the help of a legal firm who can check these entire documents verifiably on your behalf. Do remember that there are a whole bunch of other documents that are important from a futuristic perspective too, so do obtain a list from a lawyer or a law firm that will provide the exhaustive list along with relevant checks.

3. History of the developer

This is important from the perspective that you will avoid unfulfilled promises and pillar to post cases for basic amenity provisions. A reputable developer, even if he is a first timer, will have some sort of operating history to show. Testimony from other customers acts as a very good confirmation that you’re on the right track.