Consider These Before Investing In Plots

Consider These Before Investing In Plots

Consider These Before Investing In Plots

Many home buyers, especially in the metro cities, now opt to invest in under-construction or ready-move-in properties to save time and energy. But, in cities beyond metros, people still prefer to invest in plots or land and construct a house of their choice as and when they want. In fact, it is also a known fact that investing in plots is considered as secure and know to offer higher returns. However, purchasing a plot of land can be a risky affair, too, since it is often associated with issues of disputed land sales and demand for half payment in cash.

Moreover, the steps and procedures involved in plot-purchase are considerably different from apartment-purchase. Hence, it is essential to conduct a careful analysis before setting out for the task.

MakaaniQ lists out the factors you must consider before investing in plotted developments:


Location is crucial when considering plot-investments. If a buyer is planning for investment in plots for own use or for resale purpose, he or she must research the area properly to understand the neighbourhood, infrastructure and social and public amenities. One must also check the water, sewer and drainage systems before going ahead with the deal.


Another key aspect is size of the plot. Set your requirement and then be informed about the exact built-up area before you make a purchase. Studying the topography and soil will also be a useful step to ensure a safe real estate investment. Plots need to be protected from encroachment and squatters, hence a survey of the land and clearly defining its dimensions and area will go a long way in preventing legal disputes.


  • Title deed: Check if the seller has a legal right over the property. This could be confirmed by going through the title deed of the property.
  • Encumbrance certificate: This document is a proof that the property is free from monetary and legal liabilities. It declares that the plot is free of any legal hassle and unpaid dues.
  • Release certificate: This is essential for resale plots and the document shows that any loans on the land in question have been repaid.


  • The owner of the plot should verify if the plot or the entire layout has been approved by the city development corporation. Request a copy of the necessary approval documents and it is better to get it verified by a lawyer.
  • Property tax receipts and bills: To avoid facing taxation related issues, the buyer must request previous property tax receipts and other bills from the plot seller.

Other documentation

Confirm that documentation related to land transfer is complete to evade further hassles. Thus, the following documents are necessary for land transfer:

  • 7/12 document: Title and proof of right
  • 6/12 document: Past transactions i.e. record of change in ownership of land
  • 8/A booklet: It refers to the details of tax, land revenue tax, etc.
  • DC Certificate: If the plot pertains to agricultural land and you are investing for residential purpose than request for DC certificate from the seller.
Last Updated: Wed Mar 22 2017

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