Documents Required For Buying Plots In Chennai
Are you in the process of buying land in Chennai? Before you proceed to make the purchase, there are a few things you must consider and keep in mind! In addition to this, you must also ensure that documents are produced from both your and the seller’s end. This blog will discuss the factors you must consider and the documents required for buying plot in Chennai.
Investing in real estate is a big decision and a fruitful investment. Real estate is nothing but the land and the property developed on it. But the land is also a standalone real estate property. The real estate sector is one of the best performing sectors in India that contributes majorly to the country’s Gross Domestic Product (GDP). Of all the types of real estate (the main ones being residential, commercial, industrial, and land), investors in the country most prefer the land. This is because of the desirable returns it yields on investment and the flexibility it comes bearing.
The demand for land in the country is currently high, with a lack of supply. This makes land a very valuable asset to invest in. In addition to this, the land also gives you a lot of flexibility in terms of the kind of development you want to undertake on the land you have bought. Also, because there is no development on the land at the time of purchase, the amount you will spend on the initial investment is low. For these reasons and more, land is one of the most sought-after real estate investments. You can read more about it here.
To buy real estate, you need money and transparency in documents. This blog will discuss the documents required for buying plots in Chennai. But before that, let us take a look at the factors you must consider while buying a plot of land.
Things To Consider While Buying Land
Buying land is a very important decision and a big one at that. In the process of investing in plots, you must consider an array of factors that will help you land the best plot of land –
- Define your investment goal before you begin to scout for land. Setting a goal to reap the most out of your land investment is important. Address why you want to buy land, what you will use it for if you are looking for returns, and if yes, how much are you expecting, and more.
- The kind of land you want to buy is also important to consider when you look to invest in land. You may want to invest in residential, commercial, or industrial land. Commercial and residential land is the land types that are the most mainstream.
- The location of the land is of prime importance. You must invest in land that is in prime locations across the city. You should also take into consideration the type of land you have zeroed in on when you look for the location. You must look for a prime residential location if you want to buy residential land and a prime commercial locality if you want to buy commercial land.
- Next, you should look for a land promoter with a good reputation. You need to research their clients, look for news articles, and check out customer reviews before you zero in on a builder.
- Once you have decided to invest in land, you need to set a realistic budget for the investment. Consider your savings, the amount of loan you can manage with your current earnings, and more to set a budget.
- Getting your documents in place is also an important thing to do while buying a piece of land. Ensure you, as well as the seller, produce all necessary documents at the time of registration. Note that even before the registration, the seller must be willing to show you any document you ask to see.
These are a few things you must keep in mind when you buy land in Chennai or anywhere else. Documents play a very vital role in any real estate transaction. So, you must ensure that you have all the right documents in hand when the registration of the land takes place.
In the coming section, let us look at some of the most important documents required while buying plots in Chennai. Keep reading!
Documents Checklist For Buying Plot In Chennai
As discussed earlier, documents are an essential part of real estate. They act as proof of transactions, ownership, and even the existence of a property. They also are proof that the land or property is developed in compliance with the rules and regulations posted by the respective real estate authorities and the government. If you are buying land in Chennai, there is a list of documents that must be in place. Some of these documents are –
- Encumbrance Certificate
- Title Deed/Sale Deed
- Certificates of Approval – CMDA and DTCP
- Non-Agricultural Order
- Tax Receipts
Patta is a document that is a record of the legal details of the individual who owns the land or the property. It is usually a part of the Register of Land holdings, maintained by the Tahsildar. No matter what, the patta should be in the name of the current owner, i.e., the one who is selling the land to you. Some may claim that the patta document is in the previous owner’s name. Do not accept a patta that is not in the current owner’s name. Patta is one of the most important documents required for buying plot in Chennai.
2. Encumbrance Certificate
This is another one of the documents required for buying plot in Chennai. An Encumbrance Certificate, also called EC, is a document that is proof that there is no legal claim on the land and that it is free of any legal holding. This certificate will show all previous transactions that have taken place, along with the names of the buyer and sellers and will highlight if there is any loan taken on the land.
3. Title Deed
This is another document that acts as a verification of the ownership of the land. This is a legal document that transfers the ownership of the land or any property. Also called the Sale deed, this document will have the details of the ownership transfer that has taken place from the seller to the buyer. If the seller is operating through a Power of Attorney, you must compulsorily check this document, as the chances of the transaction being fraudulent are very high in these cases. The Title Deed is one of the most important certificates in the documents checklist for buying plot.
4. Certificates of approval
For land to go up for sale, it is important for regulatory bodies like the Chennai Metropolitan Development Approval (CMDA) and District Town and Country Planning (DTCP) approval. CMDA approval holds good if the plot is within city limits. And if the plot is outside city limits, it would need the DTCP’s approval. You should also ensure that the plot is not located within 500 metres of the sea. It should be outside the Coastal Regulation Zone limits. These approvals are two of the most important documents required for buying plots in Chennai.
5. Non-Agricultural (NA) Order
Since India is primarily agricultural land, the government allocates a set of land across the country strictly for agricultural use. When you get into talks with your land promoter or seller, you must ensure that the land you are looking to invest in is not agricultural land. The government issues a document called the Non-Agricultural Order, also called the NA Order, as proof that a certain piece of land is not agricultural land. Being a significant part of the documents checklist for buying plot, you must ask your seller for the NA Order and check it thoroughly before purchasing the plot.
6. Tax Receipts
Just like how a prospective employer asks for past pay slips from the organisation you were previously employed in, it is always safe to request the seller to produce the tax receipts of the past few months. This will keep you out of trouble from taxmen in case taxes have not been paid regularly for the plot by the seller.
These are a few documents you must check before you go ahead and buy a plot in Chennai. Other documents include those which prove the seller’s identity – you can request the seller to produce his PAN card details, Aadhar card, or his driver’s license. Do not go ahead with the registration of the plot without checking the documents discussed in this article.
If you are looking to invest in a plot in Chennai, consider investing with G Square. We are south India’s largest and Tamil Nadu’s no. 1 real estate developers. With over a decade of experience, we have emerged as leaders in the field of real estate. We also have a proven track record of working with established industrialists and corporate firms. Transparency in plot dealings is one of our main mottos, and we provide comprehensive guidance for our clients in their land investment journey. Additionally, we also take care of end-to-end plot registration and offer excellent afr-sales services. For more details, get in touch with us through our website.