Things to be considered while buying a NA plot
Buying a residential plot is a significant investment, and it is essential to ensure that the plot is legally authorized and free from any legal disputes before making the purchase. As a new buyer, it is crucial to verify the plot’s legal status prima facie to avoid any future complications. In this blog, we will discuss the various aspects that a buyer should consider before investing in an NA residential plot.
NA Order and Layout Approval
The first and foremost thing to check before buying an NA residential plot is the NA order and the layout plan’s approval. The NA order is a document issued by the government that certifies that the land is non-agricultural and can be used for residential purposes. The layout plan’s approval ensures that the plot is in compliance with the regulations and that the layout is authorized for residential use. A buyer should verify that the NA order and layout approval are valid and up to date before investing in the plot.
Recreational and Amenity Open Spaces
Another essential aspect to consider is the availability of recreational and amenity open spaces in the layout. As per government regulations, a certain percentage of the total land area should be allocated to open spaces in residential and commercial layouts. A buyer should verify that the plot has the required open spaces to ensure a healthy and peaceful living environment.
Mandatory RERA registration:
RERA registration is mandatory for NA plots, as it provides legal protection to buyers, promotes transparency and accountability, enhances the credibility of the developer, and is required by law under the Real Estate (Regulation and Development) Act, 2016.
Internal/Access Road
The width of the internal roads in the layout is also an important consideration. The width of the internal roads should be based on the length of the road as per government regulations. A buyer should verify that the internal roads in the layout are of the required width to ensure smooth vehicular movement and easy access to the plot. It should be 12 meters wide.
Registration Process
Before investing in an NA residential plot, a buyer should also verify the registration process. The registration process includes the transfer of the property’s ownership from the seller to the buyer. The buyer should ensure that the registration process is legal and that the property’s 7/12 extract is in the buyer’s name.
There should be clearly mentioned अकृषिक on 7/12 extract and the area should be mentioned in Square meter.
Loan for NA Plot
If a buyer is planning to avail of a loan for purchasing an NA residential plot, they should be aware that loans for NA plots are generally 1 to 1.5% higher than home loans. Additionally, the general condition is that the buyer needs to pay 20-30% of the total amount as a down payment, and the rest can be availed as a loan from a nationalized bank.
Tax Exemptions
If a buyer is planning to construct a house on the purchased plot, they can avail tax benefits on the loan’s principal repayment and interest component after construction.
In conclusion, investing in an NA residential plot requires due diligence and verification of various legal and regulatory aspects. By considering the points discussed above, a buyer can ensure that the plot is legally authorized and that the investment is secure.
