Buying Land or Plot in India? – Here is a 10 point checklist which you should know before purchasing any property in India

POSTED BY Jagoinvestor ON March 14, 2016 COMMENTS (110)

Are you looking for buying a plot or a piece of land? If not today, maybe you have this dream of owning a plot sometime in the future.

Buying land or plot has in a way to become a premium thing these days especially in big cities because the land is scarce commodity and the pride is associated with having your own plot where you can build the house as per your wish.

In this article I will tell you 10 important things that you should know before purchasing any property in India.

buying land or plot

If you happen to visit any real estate exhibition, you will come across many plots projects along with the residential apartment schemes. These plots are generally within 20-100 km of the city radius and often marketed as a second home or vacation home.

On top of it, the pricing is attractive (often within 5-20 lacs) and there is also the facility of installments which makes it too easy to own a plot. The deal is often paying a token amount and pay the rest amount in parts (EMI).

However, a common man is often not aware of the risks associated with buying land and the complexities involved in it. Buying a land is a very different kind of ballgame altogether compared to buying a flat (which is much safer), and today I am attempting to make things easy for you to understand.

My Personal Experience

I have personally visited a few plot schemes myself over the last few years (near Pune). I have interacted with the salespeople and have some experience in this area. Hence, I will try to share what I know with you. If you can also add to my points, I would love to incorporate it into the article.

This article will mainly help a newbie with the simple checklists which they should look at before buying a plot or when they go to visit a scheme or if they are interacting with the salesperson (here is a checklist for buying apartments).

Note that this article is mainly keeping in mind plot schemes or gated communities, but most of the things will also apply for a standalone piece of land.

1. Is the land on the name of the builder?

The first question you should ask the salesperson is that if the builder has legal rights to sell the land or not. Find out who is the current owner of the land? Is it a builder himself or not?

A lot of builders either buy the entire land from the previous owner or enter into a joint agreement with the owners to sell or develop the land and sell the plot scheme. No matter what, make sure that this part is clear. Ask for the documents which clearly show the builder has legal rights on the plot himself.

Here is a story on how small builders do frauds

2. Has the developer taken a loan from Bank for the project?

Builders often take a bank loan for the Plot schemes and even residential schemes. It’s a sign that the builder is more serious about the project and it’s also a positive sign, because if there is the money with builder which will be specifically used for the project development.

The builder is not dependent fully on the advance money the home buyers. It shows that there is a cash flow dedicated to the project and the issue of cash crunch will be minimized.

It’s not always the case the scheme has a bank loan, but still enquire about it. If bank loan is there, it’s proof that the bank has done thorough verification from their side on the legalities and only then granted a big amount (often in crores)

3. Where is the NA order?

By default, all the land in India is ” AGRICULTURE LAND”, unless it’s defined for some other purpose by the govt. So a piece of land is either agricultural or non-agricultural (commonly called as NA in real estate industry)

Agricultural land can be used for Agri purpose, whereas if you want to do any other thing other than agriculture then one has to first convert that Agri land to non-agricultural (NA)

However just because a land has got NA status, does not mean that one can start using it for residential purpose, because there are various types of NA like

  • NA – Commercial
  • NA – Warehouses
  • NA – Resort
  • NA – IT
  • NA – Residential (this is the one where one can build a residential house)

So if a plot of land is type NA – Resort, that means that that one can build a resort there, but can’t make a residential scheme. If a plot is NA – warehouse, then one can build a warehouse there for commercial purposes, but can’t make residential schemes and sell to the common man.

So you need to look for “NA – Residential” Plot

So, the point is that you need to ask the builder/salesperson, if the plot of land you are planning to buy is “NA-Residential” or not? Ask them for a copy of that. A lot of other kinds of NA plots are sold as “NA plot, collector approved” which is a misleading thing.

I am attaching a sample NA order below (from Maharashtra) for you too just get a feel of how it looks like

na order sample copy

Another thing you have to be very cautious is “Proposed NA” schemes. A lot of builders try to sell a non-NA land telling you that its a proposed NA land, means he has initiated the process of converting a land into NA scheme, and the papers are already in process and “very soon”, the land will become NA-residential and how you will then reap the benefits of the high prices.

While there are chances that the conversion happens, but in most of the cases, its a gimmick to sell a cheap land at high prices and often buyers are stuck in the project, because the land is nothing more than a piece of crap later.

Don’t fall for it, because converting an Agricultural land to NA-residential is a very lengthy process in which a lot of approvals needs to be taken for it. There are cases where it’s been 10-15 yrs and it’s “still in process”

I suggest you read the following experience to understand more about this point.

Proposed NA plots

So, ask the salesperson to show you the NA order papers. Have a look at it yourself and do not fall for the promises like its coming in 2 months or next week or anything like that. Don’t get stuck into those kinds of deals.

Understand one thing very clearly, NA plots with clear title are limited and scarce, & often you will have to pay good price for it, If the land price is dirt cheap and it’s promised as NA-residential, there is a good chance that it’s fake or very very far away from the city limits.

4. What is the FSI for the plot?

Suppose you bought a plot of size 2000 sqft for building the house on it.

How much construction can you do?

Here comes the concept of the FSI or Floor space index. FSI simply means how much construction can be done on a piece of land and it depends on the location of the plot.

FSI of 100% means if you have a plot of size 2000 sqft, you can build a house of 2000 sqft on that. If the FSI is 75 %, then you can only build 1500 sqft of house on that 2000 sqft land.

The project I recently came across:

I recently came across a project called Royal Purandar near Pune when I went to visit a plot exhibition. The lady at the counter told me that the plot sizes start from 5000 sqft and go up to 40,000 sqft (which is very big). I was shocked to hear about so big plot sizes because 5,000 and 10,000 sqft plots are quite big.

However, when I asked her what is the FSI of the plot, she told me it was just 15%. So with FSI of 15 %, if you buy a plot of 5000 sqft size, you can just build 750 sqft of house, which is generally a small bungalow.

There is nothing wrong with that, but you should be at least aware of it.

Why FSI is very very important?

So understand that FSI has a very important role to play when you will construct something or even when you will sell the plot to someone else. Imagine 2 plots which are of the same size (2000 sqft), but with different FSI like 50% and 100%

  • Plot A (50% FSI) – You can make just 1000 sqft home on that, which will be like a 2 BHK)
  • Plot B (100% FSI) – You can make a 2000 sqft home, which will be like a 4-5 bedroom Bungalow.

But then it might happen that Plot A is selling at 10 lacs and Plot B is selling at 15 lacs, and you might say – “Plot A is cheaper because its less priced and the size is same (2000 sqft)

One important thing you should know is that FSI for agricultural land is very small generally. In Maharashtra, it’s just 4 %, which means even if you buy a 10,000 sqft Agri plot, you can only do the construction of 400 sqft on that land.

You should definitely ask the builder/salesperson to share the document which mentions the FSI on it. Judge the price of land only after learning about FSI, not just the area.

5. What are the other projects done by the builder?

You should ask the salesperson about the other projects done by the builder. Check if they have done other similar projects in the past? What was the response to it? What is the quality of those projects? Were there any legal issues with those schemes? Are the buyers happy with the builder work there?

You can often get some clue about all this on the internet or the online forums. Just go to the website of the builder and find out what are the other schemes he has done. Search with the other project names and see what others are talking about?

If you get a chance, I suggest paying a visit to past projects once. Spending half a day in this will only help you further to take the decision.

6. When will the Sale Deed happen?

You will often hear about the “agreement to sell” which is executed when you book the flat/plot and clear your initial payments (around 35-40%). This is the time when you pay stamp duty and registration charges. Once the agreement to sale is completed, a lot of buyers think that the flat/plot is registered on their name and now they are legally safe.

However, this is a myth and the “agreement to sell” does not make you a valid buyer. The agreement to the sale (often called ATS) is just the AGREEMENT TO SALE, which means it’s an agreement between buyer and seller on the initial points and terms under which the sale will happen in the future.

It mentions the terms and conditions of the deal, how much initial payments are you making along with cheque number and also the future dates, by when you will clear the payments, etc.

What is the “Sale Deed” document?

“Sale Deed” is the document that needs to be registered in the office of sub-registrar in order to make the sale happen. Unless the sale deed is done, you do not become a legal owner.

Hence, ask the builder or salesperson about the sale deed? When is it going to happen? The sale deed is generally done, only when the builder gets all the dues from your end.

7. Will I get an individual 7/12 extract in my name?

Let me first help you understand what is “7/12 extract”? It’s a term which you will often hear in states like Maharashtra and Gujarat. In Karnataka its called 7/12 Uttara. It’s the document maintained by the revenue department which mentions how the land moved from one owner to another owner in the last 30 yrs.

So in a way, its a history of the land and you will find exactly on which date who sold to whom. This way you will find out who is the current owner of the land also.

For example:

If person A sells the land to person B, then it’s important that the name is 7/12 extract is changed from A-> B. Unless B name is not registered in the 7/12 extract, B will not be a valid landowner.

So it’s important to ask the seller about the 7/12 extract. There are many complications around this, like if you buy an agricultural plot from the seller in the name of “NA plot”, then your name will not be there in the 7/12 extract, because there are restrictions on who can buy the Agri land and even the minimum size restriction is there.

Also at times, the builder will tell you that the name of the builder will be there in the 7/12 extract, and not yours. Or the society name will be there in the 7/12 extract and not yours.

Also at times, what happens is that a big piece of plot is broken down into small land areas and sold to many people and a joint 7/12 is made, where all the buyer’s name is there in 7/12 extract (see the conversation below), which makes things very complex in future.

7 12 extract buying land

So make sure you enquire on this aspect properly, and if an individual 7/12 extract will be done or not.

8. What will be the per annum maintenance after buying the plot?

Once you buy the plot, there is annual maintenance that needs to be paid which goes towards maintaining the basic amenities like security, upkeep of the project, gardens, water, security etc. It should not be a surprise for you later. This maintenance is generally paid on a yearly basis and it’s proportional to the plot size. For example, if it’s Rs 4 per sqft and your plot size is 2000 sqft, then your maintenance per year would be Rs 8000.

9. Is the plot on flat land or on a slope?

Don’t assume that your plot is always going to be a piece of flat land. If it’s a big project, it might happen that the overall land which builder has acquired is uneven or has slopes. So when it’s divided into several small plots, many plots might be on the slope or it might be uneven.

You will ask what are the main issues when we build a house on land with slope or an uneven plot?

Below are some important points regarding the land on the slope from this website

If the plot is on a significant slope, either the land will need to be cut and filled, or you’ll need to build a house that takes that slope into account. It’s worth remembering that while these things might make your house more spectacular, they’re also likely to cost a fair bit more.

Depending on the angle of the slope and what’s built on neighboring properties, a slope can also reduce your exposure to sunlight – which in turn can affect how much light you get in living areas, and your potential to harness the sun both for passive solar heating and for collecting solar power.

Where we live in the southern hemisphere a north-facing slope is ideal for solar access – a steep south-facing slope not so much.

Below is how the project brochure looks like when its shown to you (often when the project has not yet launched or into the exhibitions)

project layout for plot

By seeing this kind of image layout, you never get an idea if a particular plot is on slope or not. So it’s always a good idea to ask this question and verify it by visiting the site yourself.

10. What are the arrangements for water and other basic amenities?

Always ask how they are going to provide water and other basic amenities. Is it going to come from the municipality or the gram panchayat? Or they are doing their own arrangement for it?

And also ask some other questions like :

  1. What about electricity?
  2. Are they going to arrange for a individual electricity meter?
  3. How much are they charging for it?
  4. If the plot/land is too much away from the main road, then what about the access road?
  5. Who will develop it?
  6. What about fencing of plots?
  7. What about security?
  8. Ask everything in detail and in points.

With this, I think we have completed the main high level 10 things you should ask when you are buying a plot. Below is another video on this topic where some industry-level people are talking about the same issue of buying land and the complexities involved.

I strongly suggest watching the 15 min long video below

Now we will see some important points which you should keep in mind before you buy the plot.

Important tips for someone buying a land

  • Do not hurry. Period! – Buying land is an emotional decision and often salespeople use a lot of tactics for selling the plots (just like flats). Don’t believe the seller when they say that just 12 plots are remaining or the prices are increasing next quarter when they do their “Mega – Launch” . It never happens.
  • Make many visits to the plot – Don’t book the plot just after one meeting or without visiting the plot yourself. I would say that one should make at least 3-4 visits before the deal. Try to visit the plot once when your salesperson is not on the site. Just make a surprise visit and ask others on the site about important points and you might find some new information about the plot which was not told to you
  • Check the nearby development yourself – Don’t believe the salesperson about the nearby development information. If the salesperson says that a new flyover is coming up nearby or if there are 3 colleges within a 2 km radius, just find it out yourself.
  • Talk to people nearby the plot – If you can go a bit further, see if you can talk to people who live nearby the plot. Make a random visit and then ask the shopkeepers nearby, houses nearby on the points which concern you.
  • Bargaining for the price – Often the list price quoted for the plot is never the final price. In a country like India, it’s a well-known fact that there is always bargaining. So you can easily assume a 5-10% margin. Ask them to reduce up to 10% price and then settle for at least 5%. Take a lot of time to decide and often you will see the prices coming down. It’s very important that you do not show your desperation on buying and also share with them some names of nearby projects and how you also like them and you need a strong reason to buy a plot from them
  • Search online about the plot scheme or the area of land – Always search for information about the project or builder online. You will often come across others who have visited the site, or interested in the same project, you can connect with them and discuss it

I hope this article has given a good knowledge to you about the important things you should ask and keep in mind before you buy a plot into some scheme.

Beware of small unknown builders for plot projects

By now I think there is no need to tell that land buying is very complicated and one should not attempt it if you do not have the risk appetite for it.

There are many small flies by night people who know how mad people can get to own a plot of land and they come up with schemes where their sole intention is to make money for themselves and cheat customers. Please see this below video where some buyers are sharing their real-life experience of buying a plot and getting cheated.

I would strongly recommend that you involve a good property lawyer for verification of documents and the legality of the project. It would increase your cost a bit, but then it becomes a more secure investment.

Please note that all the points I have mentioned above, are based on my knowledge and understanding. If there is any correction to be done, please share that with us. Also please share your comments and views in the comments section below.

110 replies on this article “Buying Land or Plot in India? – Here is a 10 point checklist which you should know before purchasing any property in India”

  1. Agro says:

    Thank you for sharing this comprehensive checklist for buying land. It’s evident that you have covered several crucial points that potential land buyers should consider before making a purchase. I particularly appreciate your emphasis on conducting a thorough due diligence process.

    In addition to the points mentioned, I would like to highlight a few more aspects that can significantly impact the value and suitability of the land:

    Zoning and Land Use: Ensure that the land is zoned appropriately for your intended use. Zoning regulations can vary from one area to another, so it’s crucial to understand the specific zoning restrictions and permissions in the locality.

    Accessibility and Infrastructure: Consider the accessibility of the land and the existing infrastructure in the area. Evaluate factors such as proximity to main roads, public transportation, schools, hospitals, and commercial centers. These factors can play a vital role in the land’s future value and convenience.

    Natural Hazards and Environmental Factors: Assess the land’s vulnerability to natural hazards such as flooding, earthquakes, or landslides. Additionally, check for any environmental concerns or restrictions that could impact your plans for development.

    Future Development Plans: Research any future development plans for the surrounding area. Upcoming infrastructure projects, new residential or commercial developments, or changes in the neighborhood can significantly affect the land’s value and potential growth.

    Legal and Title Verification: Engage a qualified lawyer to conduct a thorough legal and title verification. This process ensures that there are no encumbrances, disputes, or legal issues associated with the land.

    Remember, investing in land requires a comprehensive understanding of the market, local regulations, and future prospects. It’s advisable to seek professional guidance from experienced real estate agents, lawyers, and surveyors to make an informed decision.

    By considering the additional points I mentioned, you can further enhance your due diligence process and increase the likelihood of making a successful land investment.

  2. AD Rajput says:

    Hi Manishji,
    I have purchased the NA Residential plot (Having gram Panchayat Aakarni for plot and gram pachayat took Rs 500 tax and given the receipt of tax, Near Gandhinagar gujarat) , which is in the farm having survey number and it is approximately at the center of the village and that area comes under the Gamtal Extension area in the map of GUDA (Gandhinagar Urban Development Authority). There are total 17 plots in the farm without the NOC from GUDA. No one has started construction on the plot. I want to start the construction on it and I have the Gram Panchayat Approval/Parvana for it but I don’t have the any approval from GUDA(Even any house Holder , which comes under the Gamtal Extension area don’t have any approval/NOC from GUDA ).
    (1 )So my question is this type of construction is valid or not with the only approval from Gram Panchayat??
    or we all plot holder should get approval/NOC from GUDA for plot and then for the construction after getting FP(Final Plot).
    Please reply…

    (2)Can anyone (any plot holder individually) get NOC for the construction with the approval of House Plan made(with suitable FSI) by an Engineer???
    Please reply Sir…
    (3) Or I can make the house with the approval of Gram Panchayat only and can stay in it for Life Time.??

  3. AD Rajput says:

    Hi Manish ji,,,
    In the case , where the NA land is in village residential zone/area ,extended Gamtal then the plot (surrounding there are many houses,,Its look like at the center of the village and having Survey number) which is on non agriculture farm should purchase or not. If purchased then house construction should start or not with the approval of Gram Panchayat only???
    there are so many plots in the farm approx 17 plots without the NOC from Urban Development Authority as the village comes under it.

    1. Jagoinvestor says:

      You need to take approval from gram panchayat only

  4. uddhav singh sikarwar says:

    what to do when the colonizers do not provide basic need water and electricity

    1. Jagoinvestor says:

      Which colonizer are you talking about ?

  5. Anshuli Chaturvedi says:

    Mam/sir I have buy the plot on Jabalpur district of Madhya Pradesh. what happens with me is I have purchased a plot where the owner has the right to sell but what they do with me is they had given me the possession on Govt. ceiling Land with different khasra meaning thereby that they had cheated me. The boundary(chauhaddi) attached with the registered papers show me that the land is at the same position where I construct my house. but according to govt. record that land is under ceiling limit. So my question is whether the demarcation before purchasing land is compulsory for the purchaser because before purchasing I know nothing about the demarcation and not even the sub-registrar or the seller has told me. what should I do in this regard.

    1. Jagoinvestor says:

      Hi Anshul

      Its a complicated case and you shall meet a lawyer to fix this.


  6. Saurabh says:

    Thank for Information
    I would like to know what is NA42 B Can we get sale deed and register on That?

    1. Saurabh says:

      And what is FSI on that

  7. Vikas Chauhan says:

    Hello Sir,
    I have a few queries, please help me with that. I tried on many sites but didn’t get any exact reply. I visited to buy an NA plot in Dhanori Pune, but I heard a new term there, which surprised me.
    1. Builders are saying these are NA plots but they don’t have any single common amenities like ( clubhouse /open space /park /kids playing area /jogging track etc ). I asked him how’s govt allows you as an NA section without leaving amenities space. Then he told me that they took NA section in multiple times on a small chunk of land so their amenities were not required mentioned. Is This True?
    2. Later he told me that they will charge 40% loading with respect to land consumption in road development. That means if I will pay for 1000 sqft then I will get only 600 sqft of land. rest 400 sqft will deduct for the road. IS this really make the sense. Please share your thought on this.
    3. He said that earlier some builder sold the road separately to someone that why govt make a new rule that goin forward builder needs to the sold road also. So in the future, they don’t have any ownership claim on the road. This is also a new thing for me in my whole life experience. Please share your thought on this also.

    1. Jagoinvestor says:

      1. NA plots can be sold as stand alone lands if builder wants, so if he is not providing any amenties, then he cant be forced to do , but if its truly a NA plot at good location, any sensible builder will put all amenities and sell if off in proper way to its users.

      2. Its a simple thing, He is selling you 600 ft land at the said price, Its just a trick to make it look like 1000 sqft where later you will get 600 .. You have to see if price makes sense or not.

      3. I am not aware of this.

      Is it a reputed builder who has history of delivering plot projects? This seems to be a new builder who is trying to sell of some plots to people with shady offers and rules.

  8. Bijay Kumar Sahoo says:

    Hi I have a query.
    We bought a plot from a builder in Odisha and converted it to a NA land. We are planning to start construction of our new house there. A local guy came and said that we cant build a house without his permission. He is a local so I dont want to mess with him because he can cause hinderance in the construction of our house. What are my rights here?
    Any advice would be appreciated, Thanks

    1. Jagoinvestor says:

      You have 100% rights as its your plot. I mean what exactly you want to know ?


  9. Amit Karkhanis says:

    Wonderful Information, Thank you very much for the great article
    I am looking to buy a plot and the questions brought me to this page
    Most of my questions are answered, but one – the builder claims that this is a gram panchayat area and no need to convert to NA to build a bungalow – I was unaware of this scheme and i am still wondering how my name will go on the 7/12 when i donot have a farmer certificate

    1. Jagoinvestor says:

      Your name will be put in 7/12 along with others as minimum 11 gunta is required to be purchased.. Better dont do it .. Its a messy transaction and you will repent later!


  10. harshal says:

    Hello. Nice article. It helped me resolve some of my questions. Thanks again!

    Nanded city is built under TP act in Pune (Township Planning).
    I have visited nanded city’s bungalow plot project. They are selling plots from 2400 sq ft to 500 sq ft. They are not putting purchaser’s name on the 7-12 extract. So I think the plot will not be on my name. So what is the legal aspect of such a sold plot in township? They say that once sales deed is done, we will give you possession. After the possession I can start my bungalow construction. The salesperson was not able to answer my question “If the 7-12 extract will not have my name as a owner, then how can I sell this plot to someone else after 10 years? Or even how a bank can give me loan today to purchase this plot?”.
    Is there something different for Township act in pune for such cases of selling a plot? How do I ensure secure and legal transaction here?
    Note- ​​​​​​​The plot is NA-Residential category.

    1. Jagoinvestor says:

      Ideally your name shall be on 7/12 extract (I live 8km far from Nanded City btw)

      Check with them why they are not able to do that? Will it be in society name and you are getting any share certificate? Is that the case. I guess so!


  11. very nice and useful information sir

  12. Shweta says:

    This is such an informative and useful article. Thank you for collating all the points in simple, understandable language. Really appreciate it 🙂

    Also, I have a query regarding how the area calculation is done for NA – residential plots. I am interested in a plot near charoli, Pune. I was going through the sanctioned layout plan and realized that they are charging for area that is not exactly equal to the physical land. Could you please assist with this?

    I can’t include image in this reply, so trying to present the calculation in words below.

    rectangular plot:
    side 1 – 12.65m, side 2 – 12.73m, side 3 – 6.13m, side 4 – 6.13m, diagonal – 14.06m

    the plot area calculation (as actual on the sanctioned layout plan):
    area calculation (A): (5.52 + 5.55) * 14.06 * 0.50 = 77.82 sq.m
    (since this isn’t the corner plot, we were told that it is mandatory to leave 5feet area in the front and back side)

    b/up area on pro-rata basis (A * pro – rata i.e. 1.49) (B) = 115.95 sq.m

    front road width (C) = 6.50m
    (Since its a project of many plots, they have got internal roads sanctioned and mentioned half of the road will be considered for each plot holder)

    permissible normal FSI (D) = 1.10

    permissible b/up area on normal FSI (B * D) (E) = 127.55 sq.m

    Now, my queries are:
    1. Is this a rule which probably i am not aware of on plot area calculation because they are charging on the value (E) which definitely isn’t the actual area of the piece of land in question?
    2. What are they pro-rating in (B)?
    3. Why is FSI being considered when selling an empty piece of land?

    Will really appreciate any and every bit of information related to this.
    Thanks in advance!

    1. Jagoinvestor says:

      Its a bit technical hence I cant give my comments fully as I am not an expert on this area

  13. Kapil says:

    Hi, i recently visited a RERA-approved colony in Indore Madhya Pradesh. The colonizer is not selling plots, but instead constructing the houses. He has the approval of 650 sq ft plots on which he got approval to build 1200 of duplex houses. One of the plots is 900 sq ft size, but the colonizer is saying since he already has RERA approval of 650 sf ft plots, the 300 sqft is extra land and he can only do agreement and not a registry of that extra land. Is there any future consequences of buying such land and house given it is for personal purpose and I have no plan to sell it in future? Please advise.

    1. Jagoinvestor says:

      Better take help of a good real estate lawyer into this. This is complicated subject and we cant give right answer here!


  14. shekhar says:

    Hi Manish,

    I am planning to buy a plot ( which is not NA plot) in marunji near laxmi chowk . People are saying this area will go under PCMC and this lang will be Residential when it is under PCMC. So few of my frineds has bought the plot her considering it will residential land when it comes under PCMC. what do you suggest ? should i buy the plot here ??

    1. Jagoinvestor says:

      If you are getting it at a very good price, then its a good bet to take. Thats what I can say


  15. Meenal says:

    Eye opener for me as I am searching for a plot in Pune. Visited many sites but I heard most of the comments you mentioned in the article. I feel pretty disappointed as I am a buyer looking for a genuine piece of land 🙁

    1. Jagoinvestor says:

      Thanks for your comment Meenal .. Please keep sharing your views like this..


  16. just a month back i went to pune for some long term invest and will be sttledown in some years , visited placeskhed shivapur and bhor , purandar , marunji projects. everywhere prices are hiked due to high proposed projects.
    But after searching a lot on google and some vidoes articles i found that this builder are just selling very few of them have clear NA plots.
    They are pulling land prices where future is much far and who knows which plot comes under Proposed Rzone/Red ZOne and specifically which plot will go under cutting for sake of Light drainage.

    1. Jagoinvestor says:

      Which all projects have you looked at? They are all near my home 🙂


  17. Manish sir,
    Just a very good explanation about “what are the questions one should have, before purchasing the sites”. Just awesome.
    You could have explained about dtcp approved sites too. Directorate of Town and Country Planning sites.
    A khata sites and B Khata sites.

    1. Jagoinvestor says:

      If you can send me some material on this, I will add it

  18. Rahul Joshi says:


    I have a plot near Xerbia project, Pune. Dattawadi(Nere) Marunji.
    Plot size if 3.4R (3700 sq ft), I have sale deed done with the earlier owner who are Kirti Developers who had this site developed sometime in 2001.

    I have a combined 7/12 extract with owner and other plot owners names on it.

    Will this cause problem while selling plot, what kind of problem might happen. Will I be able to sell plot with new owner name added to same 7/12. Would I need permission from other owners?

    What is procedure and charges/expenses if I want to have my own separate 7/12 extract.

    1. Jagoinvestor says:

      You will surely have issued in future because of this. Because its a joint one .. means the land is owned together . So if you want to sell, others also have to sign and to sign they need to be in touch and accessible.

      Things get complicated if anyone of them is NRI or someone is dead or anything like that.

      So better have it on your name, but I wonder if its really possible. Check with a real estate expert!


  19. Soorya SBhat says:

    Appreciate , the author is very honest in elaborating the facts with examples and clearing all possible doubts in the minds of the reader. Its very useful, knowledgeable and educative. Very nicely presented. Really useful for anyone who wants know things before buying a plot.

  20. Priya says:

    I visited a.scheme recently in pune which is under gram panchayat now, they showed us a plot of.3500 sq ft. So they will charge me for 3500. And they have asked me to let go 5 ft from the sold plot for the cement road. So I get 2800sq ft land and I pay for 3500. I want to know.if this is how it works ? This 5 ft they are taking for the entire length facing.the road. The original road builder is 10 feet. To make it 20 feet. They are taking 5 -5 feet by land.owners from both sides road. Shouldn’t the road be provided by the plot builder.

    1. Jagoinvestor says:

      Its something which depends totally on your agreement wordings.. There is nothing like it should be provided by builder or not .. If they do it from their end, they will charge higer price and offer you 2800 sqft.. at the end the customer only pays the price .. this way or that way !

  21. Gaurav Shrivastava says:

    Excellent compilation of information…Thanks a lot

    1. Jagoinvestor Admin says:

      Thanks for your comment Gaurav Shrivastava .. Please keep sharing your views like this..


    2. Ajaz Sayed says:

      Thanks a lot sir.can I have ur number please

  22. Deepak M says:

    Dear Manishji,

    Excellent Article !! Please share your contact details for discussing further.

  23. Aniket V. Desai says:

    Detail information regarding plot buying for new investors

    1. We will write it in future !

  24. Nirmal says:

    Very good info.!!

  25. TukaramGaikwad says:

    Very nice article, now I have better checklist and set of questions to throw at sellers of properties.

    1. Glad to know that TukaramGaikwad ..

  26. Purushottam says:

    Hi Manish,

    Thanks, Gtreat information.
    How can one find the FSI for perticular plot ?

    1. There will be document mentioning that. Ask the builder for that !

  27. Tomryan says:

    Very informative tips! Thanks for sharing this valuable tips on factors should check before buying a land. Great Post!

  28. Aruna says:

    Hello Sir :
    We had purchased a flat last year in Mumbai which had the bulit-up area 685 and carpet area of 489.43. Our Agreement was made on the Carpet area. However, after the project was complete the builder said the built-up area has increased to 715 sq.ft. So I feel we need to make an extra agreement for this extra increased 30 sq.ft to avoid any problems in future, if we plan to sell the property. But the builder has insisted us to make the payment of Rs.90000 (30 sq.ft *Rs.3000) in black since if we plan to go for additional agreement we will have to pay the extra stamp duty,registration fees, Service Tax , Vat etc. Sir, please suggest what should be done ?
    Should we pay the money in black to avoid the extra expenses or should we go for the agreement.
    Thanks and Regards

    1. YOu should make the agreement !

      1. Aruna says:

        Thank you so much Sir for your valuable advice ..


        1. Glad to know that Aruna ..

  29. Anirudh says:

    Thanks for this Article! It helped me clear a lot doubts regarding buying land.

    1. Thanks for your comment Anirudh

  30. Heymanth says:

    Great post Manish. Now i have better idea on what all to check before buying!!!

    1. Glad to know that Heymanth ..

      1. suresh says:

        Very good information manish,thank you very much

  31. Manish says:

    Hi Manish,

    Have you done any study on how to buy apartments that can be used as Serviced Apartments? Usually, societies have objection on leasing out apartments for Serviced apartments. Serviced apartments fetch good returns and the concept is still picking up in India, any article around that and how to buy would be of great help.


    1. I dont have much info on this actually !

  32. Souvik says:

    All the articles are really helpful and just need to implement in our real lives.

    1. Thanks for your comment Souvik

  33. kumar says:

    Great post Manish. My sincere thanks to you for bringing out this post. There are so many investors you have been duped while buying land ( (including my family). This article does a great sevice to many such gullible buyers.Thanks again!

    1. Glad to know that kumar ..

  34. sandeep says:

    Great post Mr Manish Chauhan. I have learn a bit about Real Estate Investing !! thank very much

  35. Joel says:

    Some of the documents that need to be checked when purchasing a land in Maharashtra include:

    7/12 extract (village form VII-XII): This record contains details of record of rights also known as the A-Land survey number along with details on Hissa number, Ghaat number, land area, name of owner, types of crops, etc. It can be availed from Talati of village.
    Form no 6/Mutation extract/Hakka patra/Ferfar/D Patrak: This has various mutation entries about different types of rights that are created or transferred to the legal heirs or purchasers of land. It contains details of how the agricultural land has changed hands and what other rights have been created on it. It should be checked along with 7/12 extract.
    8/A Extract: This booklet contains details of payment of land revenue tax, types of crops grown, owner’s name, etc. 8/A extract, 7/A extract and 6/A extract should be read together.
    Land revenue tax receipts: The Tahsildar when receiving payments of land tax gives these receipt to land owner.
    Village Map and Block Plan: This is needed to locate, identify, and confirm the location of Agricultural Land against the actual physical location of land.
    Size, shape and dimension of plot: These have to be checked to verify the access to the agricultural land. This should be followed by an actual survey of land.
    Access road and internal roads: Confirm this with neighbors and revenue officers. Find the right of way for Agricultural land. Also confirm whether the approach road to property is listed in Register 26 available at local panchayat office.
    Soil testing: This has to be done to find out which plants can be grown on the agricultural land.
    Reservations: Check whether any road or public purpose area is being acquired by P.W.D, panchayat, etc. with different authorities like BMRDA, panchayat, state government, etc.
    Agricultural land ceiling: Categories of lands and limits have to be confirmed. NOC has to be obtained from competent authorities like BDA, etc. The size of the land should be less than that mentioned by land ceiling act.
    Original title deeds: Check whether the land has clear title of agricultural land.
    Legal search report and public notice: These have to be taken to investigate the title of the agricultural land under sale.
    Encumbrances: Any private mortgages against the property need to be settled before the deal is finalized and document registered.
    Litigation: Check whether any litigation exists. If it does, know the effect of these litigation on title.
    Demarcation, survey and boundary of land need to be checked by DILR and circle inspector.
    Disputes of boundary and family need to be settled before buying land.
    Sale permission: This has to be obtained before selling agricultural land. Otherwise sale might be come null and void.
    Agricultural land belonging to Adivasi: Check whether the land belongs to adivasi or not. If the land belongs to Adviasi, then it should not be purchased.
    Agricultural land belonging to cultivators: Such land should not be purchased. Such land should not be purchased as collector would not allow purchase of such land.
    Inami land: It is not advisable to buy such land.
    N.M Permission is required for farmhouses constructed on agricultural land.
    A non farmer cannot buy agricultural land without approval from collector.
    Agreement to sell
    Power of Attorney (POA)
    Deed of conveyance: This should be stamped and duty should be paid.
    Registration of deed
    New 7/12 extract

    1. Thanks for your comment Joel

  36. Jaykumar says:

    Thanks A Lot Manishji for your guiding us in investment area of our life!

    My question is with respect to Plots…

    Point:-2 you have mentioned about Developers taking loans from Bank for development so my query is if it is where bank is offering Loans for buying plots and developers have a tie up with few or several banks (Mostly private banks very few builders has tie up with Bank like SBI or State Bank of So and So) so that buyers can avail Loans from bank, so in that case still Land ownership issue need to rechecked or can rely on developers words with an understanding that Banks would have carried out thorough check before offering Loans to Plot buyers?

    Worry comes when we are planning to buy plots not in our home town or home state and plan is to buy a plot where we are working in a cities in around far away from our native place.

    1. Yes, to a great extent you can rely on the banks who has given the loan.. But I still suggest for an extra caution making your own enquiry on this.

      1. Jaykumar says:

        Thanks A Lot Manishji

  37. Mallikarjun says:

    Oh my God, its really very good, more informative and you are so nice person took initiative to share this with public.thank you so much

    1. Glad to know that Mallikarjun ..

  38. prasanna says:

    Hi Manish,

    This is definitely not a technical correction but an alphabetical one.

    In the 2nd point-> 2nd paragraph-> 2nd line, the word ‘the’ is mentioned twice successively.

  39. Murali says:

    Wonderful article Manish. It is an eye-opener for newbies.

  40. Joel says:

    One important point apart from NA certification is that sometimes land is Adivasi land . Under section 36 A, the land of a Tribal can not be transferred in favour of any non-Tribal without permission of govt . Agriculture to Non agriculture conversion is a big headache but worst is when dealing with Adivasi land and forest land . Buyers need to be extremely careful while dealing with land marked as forest land and coastal land. Example In Mumbai around kandivali , borivali areas adjoining sanjay gandhi national park around 10K families have been affected because of this rule. My personal experience of dealings in land have been very bad . Flats are much much safer as a real estate investment . There is also one case which happened with my colleague is that a piece of land was sold to four different buyers and worst part is in the 7/12 extract none of the names of the guys among the four were mentioned .

    1. Hi Joel

      Which document one needs to check to find out if its adivasi land or not ?

  41. Prabhu says:

    Dear Sir,
    Viewed your cortical ‘Buying Land or Plot in India? ‘ based on this asking you query about ‘smart owner’ how they are give the plot less from market price? is it reliable ? can i buy a plot through online (escrow account) please help to guide me.

    they offer the plots in Bangalore NH7 near to airport , but not specify the exact place.

    thanks / Brgds

    1. THey dont sell the flat/plot , but htey just connect you with the developers. You might get a good deal because they might be into bulk deals . ANyways you will enquire everything offline I suppose !

  42. Pranav says:

    Dear Manish
    Great Explanation and informative article thank you very much sharing such a info.
    I would like to know, I m not farmer by birth nor my parent, grand parent has farming history, but I am planning to buy a farm in Maharashtra for agriculture activity. Can I buy farm/Agriculture land?

    1. Yes, if your family has a history of farming, then you can buy it, but you will have to produce a document proving that..

      1. Anjan says:

        What if my family has no history of farming? I can always be the first one in my family to start agricultural activity. What needs to be done in such case?

        1. Hi Anjan

          I am not sure what happens in that case. As per law you cant buy it, but then you buy a agri land in another state (not all states have that restriction) and then buy the land in the start which has restriction. If you really do the farming and there are proofs visible, I think there should not be an issue

  43. SantoshJunnarkar says:

    Dhanyawaad Manish !

    The article indeed has excellent inputs for layman like me. Due lack of knowledge & as it has complications, i kept myself away for real estate investment (second house, plot etc). As there was no regulator earlier, hence lot of scams or mis-selling has happened/still happening. Hope the scene will be different in coming years.

    1. Thanks Santosh 🙂

  44. Venkat says:

    Hi Manish,

    Good piece of information. However I would like to add the following.

    Though this does not happen in many cases, but is a possibility and there are cases like this. It is always better to inquire about the nature of land to make sure it is not a prohibited land for registration i.e. it should not be govt. waste land, not an assigned land, not an service inam land, not an endowment (temple) land, not an waqf board land etc.
    This is particularly very important if the property in question is outside city limits or in rural/panchayat areas. Because there are chances that some politically connected people would have got the land, which is prohibited for any alienation (change from one owner to another), illegally and by incorrect manner and put a layout on it. The layout could be a proper one with all approvals in place (got through bribes/political connections) but all the registrations done on that land will not be valid before law.

    1. Thanks for sharing that point Venkat. So are you saying that even if there is a NA order for residential purpose, still we need to do an additional check for this point which you mentioned ?

      1. Venkat says:

        Hi Manish,

        Yes, it’s better to check the nature of land __always__.
        Depending on the place, the land conversion dept and the revenue dept which oversee the khata entries might be different. And as you know, in India with bribe and political nexus we can’t be too sure.

        1. Thanks for sharing that !

    2. Vinayak says:

      In indore I have seen that buiders have built house or shops on land allocated for garden in a colony and later on buyer faces the problem

  45. Sunil says:

    very good article on this subject……..

    We have also faced some problems when we tried to buy a plot near pune, The seller told lots of things about the property, he had also done good plotting on the location by investing his own money (?) , so we thought it is the property we are looking for and we should not miss the opportunity.

    but thanks to god for our initial checks that saved us with some what we called “experience charges”.

    beside to above point we have gone for.

    1. to higher a lawyer to prepare search report for the property.

    2. we have visited town planning department to have all the details of the property (Red Zone, Green Zone etc..)

    What we came to know was, the property is not for Residential purpose and a ring Road is proposed from that area.

    so we have cancelled our thought to buy the same

    after some years we came to know, we have taken a good decision.

    1. Thanks for sharing your experience with us Sunil ! .. That was really helpful to understand a real life case.

      Please share if you guys asked for the NA order ?

  46. Vishesh says:

    Hi Manish,
    I got conned by a similar deal in Faridabad where a builder offered “land” for just 6 lakhs (100 sqyds). The land was taken over by HUDA shortly and sold with proper certification as residential land. I think we need to be careful about this land buying specially when the offer sounds too good to be true. Fortunately, I have an influential lawyer real brother, and I was able to get back my money plus a tiny compensation, but I am not sure about poor other “land” owners in the same area.

    1. Thanks for sharing that Vishesh

      True that if the offer looks too good to be true, its mostly a bad deal incase of land most of the times.

  47. Kumar says:

    A question, Manish Ji. I understand that calling yourself an agriculturist when you aren’t one, and abusing an agri land for NA purpose, is illegal.

    My question is, what if a city-dweller wants to retire as an agriculturist? If it is his passion? If he buys an agri land, and uses the land for agri purpose? No agri history though.

    Take my case. I am 28, urban since birth, no agricultural history in family. Now fast forward 30-35 years. I had a good job, a healthy side income, was frugal, remained faithful to my equity SIPs, and now in my 60s I want to use my riches to buy a big farm ‘far from the madding crowds’. Yes, retire from city job, and be an agriculturist. A big farmland, and just a small farmhouse on it (adhering to the FSI). I will not use the land for non-agri purposes. Some possible uses are having a large mango grove, farming medicinal plants etc.

    Is that possible?

    1. Yes, its possible . You can buy the agri land and start doing all that you want. The issue happens when you just show yourself as agriculturist and then for years dont do anything on that land. Thats when the issue happens.

      Also this rule of argi can buy agri land applies to only few states, not everyone.

      1. Kumar says:

        Thank you; like forever you are so prompt to answer!

  48. ManojKSharma says:

    Hi Manish

    What is the process called which allow buyer to see his/her name on bhulekh website when search with khasra number or by his/her name?



    1. This is something new to me. I have no idea

  49. JP says:

    Good Info! Thank You Manish.. Looking forward for a book from you int his Real Estate Investing!

    1. I have limited understanding of all this 😉

  50. Santanu says:

    This is a very good analysis Manish.

    Personally I feel buying a flat is far better and safer for a middle class person like me. There are so many problems with the land & plots and recently I have heard many scams as well.

    Anyway, never researched about plot vs land, this article is really knowledge gainer for me. 🙂

    1. Thanks for your comment Santanu

      1. Vijayalaxmi Rajendran says:

        This is such an informative and useful article. Thank you for all the points in simple, understandable language. Really appreciate it

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

FREE Financial Health Checkup

Take up a detailed 25 questions financial health checkup to find out how much you score out of 100?