Plot loans or ‘land’ loans are taken to acquire a piece of land. A house can be constructed at a later date. It is very important to look into the land title before you decided to invest in a property, especially since this aspect impacts your loan eligibility. There are some documents you need to check when you invest in a property.
Some essential documents pertaining to the land:
- Original documents pertaining to ownership of land.
- No Encumbrance certificate for the land.
- Layout / drawing (as approved by the town planning authority) of the location where the plot of land is located.
- Revenue receipts and land records for the plot of land.
- Tax receipts for taxes paid by the owner of the plot of land.
You can also buy a property and decide to construct a house on it, even if at a later date, try and get hold of the following:
- Original sale deed of land and extract of Index II.
- 7/12 extract or property register card in your name.
- Copy of N.A. permission for land from the collector.
- Search and title report (with the details of documents) for the last 30 years.
- Copy of order under Urban Land Ceiling Act.
- Copy of the building plans sanctioned by the competent authority.
- Building permission granted by Corporation / Nagar Palika.
- The latest receipts of taxes paid.
- Estimate of cost of construction certified by the architect.
Having said that, it is pertinent to get in touch with a local lawyer specializing in property matters. This will help you check the legal status of the documents as well as the legal status of the land.