How to buy residential plot or land?

Are you thinking of buying a residential plot or a land to construct your dream house? A house which enables you to decorate interiors and apply favorite color schemes.. In this article, I have described the complete procedure which is to be followed to buy a land. Also, I have mentioned the precautions which should be taken before buying any plot or land. It also provides some tips and tricks which are essential to know before purchasing a plot or land.

Every person dreams to construct independent house where he is able to apply his creative works, the desired color schemes and interior. But for constructing a house, the person has to buy a residential plot. Here are some tips and tricks which a person should keep in mind before buying a plot.

Points to consider before buying a land property

  1. The land should have sufficient space to fulfill your requirements.

  2. The location of the land should be easily accessible from the popular areas. In other words, markets, hospitals, schools should be located nearby the area.

  3. The area in which the land is located should have proper water and electricity supply.

  4. Drainage and sewage system of the area is one of the most important factor to be considered while buying a plot.

  5. The transportation facility should be easily available from nearby area

  6. It is always better to know the history of the land before buying the plot.

  7. Comparison should always be done with the similar properties present in nearby areas. This helps in having better knowledge of the land property.

  8. The last and the most important factor is cost of the property.

Things to check before buying a residential plot

  1. The person who is selling the property is authorized to sell the property or not.

  2. The buyer should ask for the original title deed of the land. The buyer must ensure that the title deed is in the name of the seller. Also, it is necessary to check that seller has not taken any loan against the property. The buyer has the rights to ask for all the previous title deeds of the land.

  3. The buyer must demand Encumbrance certificate from the owner to ensure that the property is not under any legal dispute. The certificate is available in sub-registrar office.

  4. The buyer must demand for Release certificate issued from the bank to ensure that if any type of loan was taken against the land, then it has been paid and no due amount is present.

  5. The buyer should get the measurement done by the recognized surveyor to ensure that the area, dimensions which is stated in the document by the buyer are accurate or not.

When the buyer is satisfied with all the requirements, then the actual legal process to buy the land property starts.

Procedure to buy a residential plot or land

  1. The most important step before buying a land is selection of the area where the buyer wants to construct the house.

  2. After the land has been decided, it must be ensured that the property is being sold by the authorized person

  3. Examine the property properly and negotiate the price

  4. Once the negotiation is done, the actual procedure to buy the land starts.

  5. The first step involves the preparation of a draft between the two parties that is the one who is buying and the other who is selling the property.

  6. After the draft is prepared and the agreed advance is paid to the seller, both the parties verify the draft. Then the draft is signed by both the parties along with two witnesses

  7. The lawyer prepares the 'Title deed' of the property. Title deed is a legal document which proves the right of ownership of the property.

  8. The next step is to register the land property in the court. This has to be done in the office of the sub-registrar. The documents which are required for the registration process are title deed, previous deeds, property receipts and torence plan. If the cost of the land is more than five lakh then the seller has to submit photocopy of his PAN card. Two witnesses should be present at the time of registration .

Detail description of legal process involved in buying a land property

  1. Preparing a draft : The agreement is made on the stamp paper of Rs 50. The details which are covered in the agreement are the details of the land, the agreed cost of the land between both the parties, advance amount to be given to the seller, time frame in which the property should be sold, procedure to be adopted if any of the party is found to be default.

  2. Preparing Title deed : Title deed contains all the accurate information regarding the ownership. It is prepared by the lawyer which can either be computer printed or typed but cannot be hand written.

  3. Registration of the land : The title deed should be registered within the time limit provided in the agreement. When the registration is done, the buyer should submit the original title deed along with the previous title deed and property receipt. The steps involved in registration are:

    1. Obtain the input form from the sub-registrar office.

    2. Fill the form and submit the application along with the documents at the token window. On submission, a token is provided.

    3. On the announcement of the token number, all the parties which are involved in the process must present themselves in front of the sub-registrar for execution of the document. They are required to provide photograph, thumb impression and signature on an additional sheet in front of the concerned officer.

    4. Pay the registration fees and other charges and obtain a receipt.

    5. After half an hour, all the documents are provided to the owner.

After the registration process is completed, the buyer becomes the owner of the land.

Expenses involved in the registration of the land

During the registration of the land, various expenses are involved. These expenses differ from place to place and municipality to municipality. Here is a list of expenses which a buyer needs to take care of while registering the land.
  1. Stamp Duty : The stamp duty depends on the cost of the land and location of the property. Therefore it varies from place to place and state to state. The details of the stamp duty is available in the office of registrar of each place. The rate is not fixed and changes with the time.
    For example: In Kerala, the buyer has to pay 7% of the cost of the land as stamp duty when registered in Panchayat and 8% when the registration is done in municipality. Similarly he has to pay 9% when registration is done in corporation.
    Likewise,in Himachal Pradesh, the stamp duty for registration of land in panchayat is 10%. In municipality, the rate is 12% and in corporation it is 13.5%.

  2. Registration Fees : Registration fees is same at every place. The buyer has to pay 2% of the cost of the land property.

  3. Document Writer Fees : The fees of document writer also varies from place to place. The fees depends on the cost of the property and the type of the document to be written. The percentage of the fees to be taken for document writing is fixed by the government and they cannot charge more than the prescribed rate.

  4. Computer service charge : This is era of computerization. Therefore most of the states have implemented computerization process for registration of the property. The service fees varies from place to place and is based on the type of the documents being registered. Generally, the computer service charges is Rs 20 per page and may change with time.


Buying a land for constructing is life time investment. Therefore, it is very important to be careful before buying land. The person should do complete investigation before buying the land. After he is fully satisfied then only he should move the steps forward. If he has any doubt, it should be cleared before purchasing. Because, once the money goes from hand, it will be difficult to get back.

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Author: SuN09 Apr 2012 Member Level: Platinum   Points : 1

Madhvee Choubey,
It would be very grateful if you add the payments regarding stamp paper, registration fees, expenses on document preparation etc. Who should pay what. What should be paid by the buyer. What expense should be borne by the seller etc. Please add up the financial concerns in your article which will be very helpful to the readers. Thank you.

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