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Things to notice before buying Land or Plot in India


Things to notice before buying Land or Plot in India, A wise man has quoted, ‘The best investment on earth is earth.’ Real estate is considered as an investment which would always appreciate. Moreover in India, real estate also carry emotional bonds, which means that the land or plot dealing have to be made with extra caution for avoiding any malicious activities which may impact on ownership and title of the property. This article will try to summarize all the facts that you have to look before buying real estate in India.

Things to notice before buying Land or Plot in India

Things to notice before buying Land or Plot in India

Documentary Evidence for title

Every real estate property would have title deed, which is legal evidence that the said land or plot is owned by a particular person. Title deed is most important document which is also used for pledging and borrowing loan from bank. So while buying land or plot, please enquire for original title deed and do not accept copies of the same , unless advised by your advocate.

Once you receive the original deed, get it checked from your lawyer for every small detail.

Legal Title

While going through the title documents, you need to check that the seller name is the name as owner in the documents. However if more than one person are mentioned as owners of the property then it would be advisable to obtain release certificate from all of them which would say that the owners would be renouncing the right to the property for or without any compensation as agreed.

Also it is important to check whether the land has been given NA (Non Agricultural) title. It is very important because only NA land can be used for construction of house or any other structures.

Last but not least, you need to check whether the land or plot you are about to buy , is actually reserved for any government projects like irrigation projects etc. Because you would need to evacuate the plot and renounce the right to land or plot without any compensation if the land you bough is reserved land.

Encumbrance Certificate

This certificate is the legal evidence certified by sub registrar’s office saying that the land or plot is free from any legal dispute or battle. Past 15-30 years certificate would give a fair idea that the land or plot is actually free from any legal disputes.

Release Certificate

Where the owner/s pledge the land to bank or any financial institution, you must ask for release certificate from the bank. This certificate would mention that all the debts taken on this land have been cleared so the land is able to be transferred on any other person’s name without any difficulty.

Also in case of more than one owner, you need to obtain release certificate, for ensuring that no one would take objection for transferring the land in your name after buying the same.

NRI owner

It is a must that the owner shall have power of attorney transferred in name of any resident, where the owner is NRI (Non Resident Indian).This is required for carrying out the real estate dealings, as NRI can’t carry out any legal formalities in India by himself.

Other Documents

There are some other documents like Mother Deed, sale Deed, Khata certificate, NOC from concerned government agencies or departments, Paid Tax receipts including land revenue, Release Deed etc.


It is definitely financially advantageous to enter into real estate market because demand is definitely more than supply in this field. However, with inherent malicious features of the real estate market, you need to safeguard your holdings first to stay away from any fraud or illegal , dubious activity.

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About Yash Shah

Yash Shah is passionate article writer and has written more than 100 articles in the field of Finance, Insurance, Stock Market, Company Law, Auditing, Taxation and many others. In case of any queries or suggestions, you can reach the author @ [email protected], you can also catch him on facebook @ yashshah299

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