What is a Plotted Development?
In simple words, plotted development project is where the developer acquires a large section of land and divides it into plots of varied sizes. These plots are for sale to prospective buyers with the freedom to construct houses, villas or other residential structures. The builder is responsible for providing a few basic amenities like roads, street lights, and parks.
Why invest in the plot?
Investing money in a piece of land is always a wise idea to create generational wealth. With the pandemic, the real estate industry has seen a sharp spike in demand for plots as self-owned homes and villas offer more private space than apartments, thus ensuring social distancing. Moreover, assured security, the serenity and amenities within a gated community make Plotted development projects the most appealing investment option to urbanites. Additionally, plots help in providing better returns in a short span due to appreciation in their value.
Right from assessing the credibility of developers to funding the investment, there are several problems that Buyers face while purchasing plots in a Plotted development.
Here we discuss few challenges and measures to overcome them.
1. Location
One of the challenges faced in buying a residential plot is the location. Most of the plotted development projects come up in the suburban areas due to the exhaustion of large sections of land within the city. Therefore, a buyer must know the purpose of buying a plot. For instance, if it is for residential construction, then it should have easy access to essential urban conveniences and workplace.
2. Legal Challenges
Finding a legitimate owner and plot is a pressing issue due to litigations and illegal encroachment of commercialised spaces. So, a prospective buyer has to do the necessary paperwork to understand the credibility of the land to be purchased. Failing with this can lead to legal consequences. Verification of the below-mentioned documents is the only way to overcome legal challenges.
Title of the Property: the buyer has to verify the title deeds to know the legal owner of the plot. This deed is a document of conclusive evidence that the seller is the undisputed legal owner. You can search for the title on the registration website of the state government.
Encumbrance Certificate: EC helps to know if there are any economic or legal liabilities on the plot that you want to buy. It helps to rectify them before the buyer proceeds to buy. Further, it also identifies any existing legal owners who can claim the land. If the property has any charge on it then it cannot be sold or purchased.
Approvals from the Local bodies: Plotted development projects require approvals from agencies like municipal corporations. Lands converted into plots without prior approval from concerned authorities can be illegal. Investing in such unapproved layouts can put your money at stake.
RERA Registration: Buying or selling a property not registered with real estate regulatory authority is illegal. The buyer must ensure that the plotted development project is registered with RERA by fulfilling criteria specified under the act. A registered plotted development project assures protection to a buyer against exploitation by the developers and brings transparency in dealings.
Along with personal requirement the buyer must also look into the legal aspects of the plotted development project before proceeding to buy. Be it a branded developer or local developer, it is the duty of the buyer to ensure the legality of the plot that the buyer wants to own. Ignorance of law is no excuse! The buyers may also take the legal as well as financial opinions to overcome the challenges and make well informed decision.
