Phone:
095970 88298
Physical address:
Door No - 2/224A. Ragamaliga Flats Phase - 1,First Floor,Ranjani Block, Velachery Rd, Medavakkam, Chennai, Tamil Nadu 600100
In recent times, there has been a noticeable surge in the interest of individuals looking to invest in plots in India, especially in rapidly growing cities like Chennai. However, navigating the complexities of land acquisition in India requires a strategic approach and meticulous planning to ensure a safe and fruitful investment. If you are contemplating purchasing a plot in Chennai, here is a detailed guide on the critical factors to consider before making this significant investment.
Location Dilemma: City Center vs. Peripheral Areas
Deciding between a plot in the city center or the emerging peripheries involves a careful analysis of the market dynamics. While city center plots may come with higher initial costs, investing in peripheral areas can offer a lower base price and potential for substantial returns as infrastructure develops. Assess the connectivity, amenities, and future prospects of the chosen location before finalizing your decision.
Verify the Seller's Identity
Before entering into any transaction, it is imperative to establish the identity of the seller. Ensure that the seller possesses the necessary nationality and residence certificates, and check if authorities‘ consent is required for the land sale. For joint ownership, identify all sellers clearly, and for corporate sellers, validate their ability to own and sell the property.
Documentation:
o Title Deed:· Examine the original title deed to ensure legal ownership.
· Confirm the property is registered in the seller’s name.
· Check for full selling rights and sole ownership.
o Encumbrance Certificate:
· Obtain this document to demonstrate free title/ownership.
· Verify the certificate’s validity period and relevance to the property.
o NA Order:
· Ensure the land has been converted to non-agricultural (NA) status, specifically “NA – Residential.”
o Original Land Deed (7/12 Document):
· Request the original land deeds of the current and previous owners.
o Power of Attorney:
· If the seller is an NRI, ensure a Power of Attorney is obtained.
· Property Tax Bills and Local Authority Approvals:
· Confirm all necessary local permits and check previous tax bills.
Floor Space Index (FSI) and Land Use Approvals
Understand the Floor Space Index (FSI) to gauge construction potential on the plot. Additionally, check for conversion approvals to confirm alignment with the city’s zoning plans. It is crucial to identify the land’s designated zone (R zone/L zone) before finalizing the purchase.
Connectivity Check
Evaluate existing and proposed connectivity options such as metro, buses, and other transportation means. Good connectivity enhances livability and contributes to the property’s resale value.
Physical Verification
Visit the plot personally to validate its real condition and match it with the presented information. Physically check and verify documents with the relevant authorities to avoid potential discrepancies.
Maintenance Costs
Understand the annual maintenance charges for the basic amenities associated with the purchased plot. Clarify these costs beforehand to avoid surprises after the purchase.
Types of Plots
Differentiate between residential, commercial, agricultural, institutional, and industrial plots based on your investment goals. Each type has specific considerations, and understanding these nuances is vital for informed decision-making.
Agricultural Land:
- Subject to state-specific rules and land ceilings.
- Some states restrict non-residents from purchasing agricultural land.
Residential Plots:
- Obtain necessary approvals for changing land use from agricultural to residential.
- Eligible for Section 80C relief on loans.
Commercial Plots:
- Verify zoning as commercial in the city’s master plan.
- Consider Floor Space Index (FSI) for development potential.
Institutional Plots:
- Reserved for specific purposes like schools, colleges, or organizational headquarters.
- Sale or transfer authorized by local government rules.
Industrial Plots:
- Developed by government authorities for industrial purposes.
- Special permissions may be required due to potential environmental impact
Expert Advice
Seek guidance from real estate experts. Harvinder Sikka, MD of Sikka Group, emphasizes inspecting original documents and bills related to the plot. Due diligence is crucial, ensuring a legally sound and well-documented transaction.
In conclusion, purchasing land in Chennai is a significant decision that demands thorough research and patience. Rushing into such investments can lead to complications later on. Take your time, conduct extensive research, and consult experts to make an informed and secure investment in the vibrant real estate market of Chennai.