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10 Things to consider before buying land or flats for investment


Before investing in land or apartment please check points below-


a) Check there is no water body, railway crossing or Kaluve (lake) or high-tension wire near the property, as per NGT order

  • Minimum distance should be at least 50 to 75 meters from the lake edge.

  • As per the Indian Electricity Act, buildings should maintain a horizontal distance of 1.2 meters from 11 kV lines and four meters from 66 kV lines.

  • Banks may not provide loan on such property, also re-selling such properties may be difficult.


b) Sometimes you may “not” find water bodies in the current map or the layout sketch as there may be encroachments in past in those areas. 


c) In such cases check the Old Village Map, which will be available in Survey

department of Taluk office, which will show the water body outlined if any existed earlier. 


d) Check family tree of the old buyers of the property, make sure if the original owner is no more, all the beneficiary members as per family tree, have signed the sale deed. If previously any deed is executed through power of attorney, check (POA) is properly authorized and is valid. 


e) Check all the old sale deeds of previous transactions are available in original and in case loan was obtained against the property, cross check MODT is revoked, by the bank manager and the name of the current owner is reflecting in the encumbrance certificate.


f) Collect all the previous land records from the developer and get it checked by an experienced lawyer, don't rely only on bank lawyers. 


g) For B-Khata properties, check diversion certificate is available, it will be easy to get loan from banks at lower rate, compared to properties which don’t have diversion certificate.


h) Location is very important specially if you are looking for investment, try to see locations which are not located near slum or lakes or high-tension wire.


i) Check for the good connectivity or approach road to the property.


j) Check there are no old pending cases against the property.


k) Summarizing list of documents required before buying a property 

  • Sales Deed.

  • Power of Attorney (POA): If applicable

  • Encumbrance Certificate.

  • Katha certificate.

  • Land Clearance or Diversion certificate, this acts as a proof that land is converted from agricultural to residential purpose.

  • Record Of Rights (ROR) certificate.


For more details, check out the link below:


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