STEP BY STEP PROCESS FOR BUYING LAND
This article is part of the blog series: Step-by-Step Guide to Building Your Dream Home and step by step process of buying a plot. We recommend reading the entire manual for complete information. If you just want to read a specific topic, click on the link below (will be updated as we publish the blogs in the near future) in the index
1. Pre-construction or Initial Phase For Buying a plot
- Buy a Property
- Hire an Architect
- Involve a Contractor
- During the Construction Phase
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- After the Construction Phase
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Also Read : How to Design Your Home on a Budget/
Also read : Dbm full form in road construction
Step by Step Process buying a plot and BUYING LAND
Overview of this Blog
1. UNDERSTANDING LAND TYPES
2. UNDERSTANDING SELLER TYPES
3. LOOKING FOR A LAND.
4. CHECK THE CHOSEN LAND
5. NEGOTIATIONS
6. SIGN THE BUSINESS CONTRACT AND FILL IN THE PAPERS
There are three different parties involved in any land acquisition process. First – buyer, second – seller, third – land. Therefore, it is crucial for you as a buyer to understand the other two parties involved in the property purchase process. Therefore, we will first discuss the types of properties and the types of sellers.
UNDERSTANDING THE DIFFERENT LAND TYPES
- From a construction perspective, there are two types of properties.
Agricultural Land
Agricultural land is generally defined as those parts of a land area that are used as permanent grassland, cropland or arable land. This means that no development is allowed on agricultural land.
Non-Agricultural Land
Any built-up or unbuilt plot of land can be used for construction purposes.
However, if you want to carry out any kind of construction project on agricultural land, you must first convert it to non-agricultural land as part of a so-called land use change.
Conclusion: Before buying a property, you should always check whether it is a non-agricultural property or whether the conversion process (change of use) has been completed. Verification can be easily done by reviewing the conversion certificate and other documents submitted by the landowner during the CLU process.
Let’s also look at some of the benefits and risks of Buying a plot.
Advantages
• The return on investment is good.
• Flexibility to design the entire space according to your needs.
• The ownership period is very short compared to apartments. In the case of apartments, the developer usually needs one or more years to transfer.
• When buying a property, there are generally no maintenance or association fees.
There is a risk
One of the biggest risks when buying a property is the ownership risk, e.g. B.: Is the seller the actual owner of the property or not? Are there any debts associated with the property, such as loans, etc.?
• Construction risk: Is it allowed to build on the property or not?
• Change in the physical dimensions and area of ​​the property as stated in the documents.
• Access to the premises by neighbors or third parties.
• Liquidity risk: Unlike apartments, land is not as easy to sell.
UNDERSTANDING THE TYPES OF SELLERS
In general, there are 3 types of land sellers,
• Government agencies: City and state development agencies. • Private developers.
• Individual owners.
Government agencies: Municipal/state development agencies
When you buy a land from a government agency, you don’t need to worry or take any risks because the process of land acquisition > land use conversion > land development is done by the government agencies themselves.
Private developers For Buying a plot
• Buying a property from a private developer involves medium to high risk.
• Always buy from reliable and reputable developers.
• Verify the developer’s reliability by reviewing previously delivered projects.
• Review land use plans/master plan to confirm the land use.
• Before buying, make sure the property is properly developed such as sewerage, electricity and water connections, access roads, etc.
Private owners
• Buying a property from a single owner involves medium to high risk.
• Always check whether the seller is actually the owner of the property or not.
• Check the conversion certificate to prove land use.
• Check the chain of ownership (discussed in detail later).
So far you understand the other two entities involved. Let’s move on to the basic step of “searching” for a property to buy.
Learn: To minimize the risk when buying a property from a seller, you should always pay attention to 3 basic things: 1. Proper acquisition/possession of the property by the seller 2. Conversion of the property 3. Proper development of the plot
SEARCHING FOR A LAND
This is the most important part and also the most time-consuming. To make a good deal when buying a property, good research always helps. When looking for a property, you need to pay attention to two things.
Own research
- Investment-oriented research
- Property-oriented research
- Pay attention to these 4 points
- Good access to amenities
Good access to public facilities is very important for a pleasant life. Considering that a family consists of people of different age groups, good connectivity to schools, colleges, hospitals, banks, commercial complexes, large green parks and recreational areas is a must.