Things to Check before Buying Land in Chennai
Buying land in Chennai can be one of the best decisions in 2023, with a significant rise in land prices for the past consecutive years, which predicts positive revenue growth for land investors in the upcoming years. Significant demand for plots puts examining several documents on a pedestal to make your real estate purchase safe and profitable in the future. By the end of this blog, you will know the crucial elements to cross-verify while investing in plots in Chennai and make better property investment decisions.
Buying Property in Chennai – What Documents to Check?
Chennai is a safe sanctuary for property builders and land buyers in many aspects as the market is reasonable, and the ideal city is undoubtedly a humble aboard. In Chennai, purchasing a land like anywhere else in India comes down to examining essential documents and proofs of legitimacy of the land and warding off any possibility of legal issues. No matter where you buy land, checking the following documents is not an option but mandatory.
Things to Check before Buying a Plot in Chennai
Parent Deed or Mother Deed
A parent document is the original deed created at the time of the first purchase and goes back years from many transactions afterward. It determines the ownership of the property, and you can track the other further transactions through a series of transfer documents, but they can't replace a parent document. The parent deed is a registered legal document, and it has the initial purchase details, buyer & seller details, price at the time of sale, transaction method, Government charges, and witnesses, and should be checked before buying land in Chennai for a clean start.
Title Deed and Sale Deed
The document made during the absolute transfer of the property to the name of another person essentially by purchase is called a sale deed. Apart from selling, property transfer happens via different modes such as inheritance, gifts, etc., which are also title deeds or conveyance deeds. You should check the title deed while buying property in Chennai, as it is a legal document and substantial proof that claims 100% rights of the owner on the property.
An Encumbrance certificate has the references of any legal charges or liabilities like loan defaults on the property, making it an important document while making a plot investment. EC tells you whether the real estate has a clear title and this is why check EC while buying property in Chennai later to prevent legal and financial liabilities.
How to get Encumbrance Certificate for Land or Property?
You can either get EC from the sub-registrar's office or enter the required property details online and download the copy when it is ready.
Other Documents That Need to Verify before Buying a Plot in Chennai
Having checked other documents such as the Legal scrutiny report, Patta, and Revenue & property tax invoices to avert any legal accountabilities while buying a plot in Chennai and thereafter. The Legal Scrutiny Report assures that the documents are scrutinized and, the property is free from encumbrances and loan defaults.
Checklist before buying a plot
- Builder credibility
- Land value
It is not only the documents that decide the happy real-estate shopping as the land is often a single-time purchase for many of us it is essential to check other crucial things that determine the safe land buying in Chennai.
A plot layout tells about the exact boundaries of the plot and its location in the total plot area. The builder should get approval for the plot layout before selling it. Check for CMDA approvals before buying the land. Make a visit to the plot before making the purchase.
The Land value as per the market price, land guideline values made by the government, lowest land value, and nominal values give the idea of what price the plot is worth to buy must be evaluated. While buying a property in Chennai, the land valuation report is necessary for getting loans from the bank. There are various methods to calculate land value.
How to Calculate land Value?
Land value is equal to cost implications in acquiring the land + other fees (Fencing/compound wall, marketing, transaction costs)
Location & Neighborhood
Location is a crucial factor in real estate for the right reasons. Location and neighborhood based on socioeconomic, sociocultural nature, and area development determine the property price appreciation and the standard of living if you have plans to build your dream home on the property.
To prevent legal issues one of the documents to check while buying a plot in Chennai is the credibility of the property developer. You need to search and find a reliable and established realtor with expertise, proven excellence, and experience with successfully completed and ongoing projects. It will save you sweat while searching and verifying builder credibility.
Here are the top 5 signs for builder reputation.
- Recommendations from one of the clients who bought a plot from a builder
- Certifications owned by the builder
- Member of CREDAI
- Number of projects and track record
- Online ratings and reviews
Access to various amenities and public facilities like hospitals, schools, colleges, entertainment hubs, malls, parks, and different modes of transportation and proximity to these from the plot location must be checked while buying land in Chennai as it significantly improves the quality of life and property appreciation.
Chennai has been a hot spot for residential and commercial plot investments in recent years. Chennai residential market amounted to 21% year-on-year (YoY) growth in sales during the first half of 2022. A recent report from CREDAI suggests a 16% increase in the number of residential units sold in Chennai during the third quarter. While the trend is expected to continue, it is clear that the demand is on a gradual rise owing to the development of the city and migrations from all parts of the country as much as it is becoming more and more important to check for the things before buying plots in Chennai to make real estate investment secure and profitable. We hope the blog explained the crucial elements and guide you with what to check during your land purchase!