Check Land Title, Legal Facts Before Buying Plot

Kishore Gupta, Email

I am considering purchasing a plot on the outskirts of Pune along the Mumbai-Pune Highway for investment purposes. What legal aspects should I be aware of, and how does it compare to other real estate investment options?

Investing in a plot of land along the Mumbai-Pune Highway can be promising, but addressing the legal aspects is crucial.

To start with, verify the seller’s clear title and ownership history, and ensure there are no disputes or encumbrances. Check zoning compliance and permitted land use. Also confirm the plot’s suitability for residential, commercial, or agricultural purposes.

For plots in larger projects, ensure the developer has layout sanctions, non-agricultural conversion certificates, and Real Estate (Regulation And Development) Act, 2016 registration. Accordingly, obtain an encumbrance certificate to confirm the plot is free from liabilities.

Plots along this highway have strong appreciation potential due to infrastructure development and rising demand. However, they lack immediate rental income, making them better suited for long-term investors focused on capital appreciation. For steady cash flow, consider apartments or commercial properties. Assess your financial goals, risk appetite, and investment horizon before proceeding, and consult legal and real estate experts for secure investment decisions.

Anup Mittal, Email

I am planning to buy an apartment in an under-construction project, but the developer and/or agent is withholding the Real Estate Regulatory Authority (Rera) registration details. How can I verify Rera registration, and the risks if the project is unregistered?

To verify Rera registration, visit your state’s official Rera website, where you can search for the project and developer details. If you are unable to find the information online, consider contacting Rera directly, or, contact a real estate consultant for assistance.

Buying an unregistered project may expose you to significant issues, such as lack of regulatory protection and limited recourse in case of disputes. Moreover, there’s a risk of financial loss if the project fails, as unregistered developers may lack secure backing. So, it is crucial to ensure that the project is Rera-registered before you decide to go ahead with the purchase.

Sunil Dewali, Co- CEO, Andromeda Sales & Distribution

Akhil Anand, Email

I am 30 years old and recently changed my employer. My previous employer had provided me a health cover with a sum insured of ₹10 lakh, but my new employer is offering me a health insurance policy with a sum insured of only ₹2 lakh. Should I purchase a separate health insurance policy, and what should be the ideal sum insured?

Yes, purchasing a separate health cover is advisable, as your existing employer-provided policy of Rs 2 lakh may not be sufficient for medical emergencies or hospitalisation costs.

At 30, a sum assured of Rs 10-15 lakh is generally recommended, depending on your lifestyle, health, and family medical history. A personal health insurance provides continuity, which is essential during job changes.

You should go for a comprehensive individual or family floater plan with benefits of cashless hospitalisation, critical illness cover, and maternity benefits, if required. You can also consider a top-up or super top-up policy to enhance your existing cover. These policies activate once the base cover is exhausted. An adequate cover will ensure financial protection.

Niharika Singh, ED-Marketing, IFFCO Tokio General Insurance Company