Buying a plot? Here's what you need to know

For most people their biggest dream is to someday buy their own dream home. In most cases, a dream home constitutes a spacious apartment or flat in an upmarket neighborhood where the family is assured of all their needs being taken care of.

But then there are those who have a slightly different take on what constitutes their dream home. These potential buyers are not too keen to buy an apartment in the middle of some concrete jungle, but would prefer to own a plot, somewhere on the city outskirts, where they can build their own version of a dream home with perhaps enough space for an organic garden and a nice outdoor patio to unwind.

According to realty consultants a huge majority of buyers interested in plots consists of professionals and self-employed individuals working in metro's looking to experience the freedom of building their own home in a serene location and customize it as per their specific requirements.

However while most buyers are in sync with the buying process for a apartment or flat in the city, the procedures involved in buying a plot of land are a little different and necessitate the need for buyers to conduct indepth research and thorough due diligence prior to going ahead with the purchase.

A precursor to the buying process involved in the purchase of a plot would include deciding on a budget and short-listing a few possible locations wherein you would like to own a plot.

Other important pointers to consider would include:
Title Deed: This is the most important document in a property transaction and provides irrefutable proof of ownership to the said property/plot. The onus therefore is on the customer/ buyer to thoroughly check the deed to verify the selller's proof of ownership.

It's always advisable to insist on the original document for verification purposes, though many sellers may try to assure you of the legitimacy of the photo-copies of the original.

Encumbrance Certificate: You can get this certificate for the last 30 years atleast, from the sub-registrar's office where homeowners register the deed. It will assure you that the land is completely free from legal hassle and also does not have any unpaid dues.

Bank Release Certificate: Clearly stating that the loan on the land (if any) has been completely repaid by the seller/owner of the plot.

Property Tax Receipts and Bills: You must always ask for the original bills and receipts of the property tax related to the plot.

Documents required post-sale:
Once the transaction between the buyer and the seller has been successfully concluded, the buyer needs to ensure possession of the following key documents confirming his ownership of the plot.

The Title Deed: Duly transferred to the new buyer/owner, written by a government-licensed document writer.

Receipt from payment of stamp duty charges: which allows the new owner to get his land registered in the sub-registrar's office or have his name added in the village office records, as the case may be.

House Plan Approval: According to the State Municipality Act a prior sanction has to be obtained by a person who wants to undertake construction activity for building a new house or modify an existing one.

The process has been made automated in most states and can be duly completed by the contractor, engineer or architect appointed to oversee the construction. The architect needs to submit the Building Plan along with a prescribed fee for getting the building plan approved.

Cost of Construction:
The key factors to be incorporated while estimating the construction cost for a home on a plot of land include: Architect/ contractor's fees, building material costs, labour cost and expenses for interior fittings like flooring tiles, light fixtures, bathroom fittings, grills and so on.

While the above make up the actual costs, there will be a component of variable costs which will hinge on the choices made by you covering areas like the construction plan itself, the quality of materials required and so on. A useful tip here mandates using the best possible materials at the time of construction to save on expensive maintenance and repair costs later on.

Tips for Saving Costs:

• Most construction projects generally go over budget; however you can easily control the cost escalation by:
• Keeping your construction plan simple and not making any unnecessary changes once the work has commenced.
• Ensure the use of superior quality building materials and interiors.
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• Buy materials when prices are low, even if they are required at a later stage in the construction process.
• Finally, only buy what you really need and not what you want. Keeping costs down is an integral part of building a quality home and adhering to the above-mentioned pointers will ensure that you and your family get to enjoy the fruits of your labour for a long time to come.