Don’t get stuck with a bad land deal

Do your due-dili­gence and get a clean ti­tle prop­erty that com­plies with all rules

HT Estates - - Front Page - Mayank Sak­sena

The core is­sues re­lated to ac­qui­si­tion of land in In­dia are more com­plex than those re­lated to built-up prop­erty. Some of th­ese are lit­i­ga­tions due to in­her­i­tance, mul­ti­ple sales which have not been prop­erly recorded, pledg­ing of land to lo­cal money lenders, frag­mented hold­ings, re­quire­ment of cash while deal­ing with sellers, dif­fi­culty in ob­tain­ing con­tigu­ous land, land ceil­ing laws, and tough re­set­tle­ment and re­ha­bil­i­ta­tion laws.

As things stand now, land ac­qui­si­tion has be­come a means for a mul­ti­tude of mid­dle men to make a lot of money. This is be­cause the tough reg­u­la­tions and com­plex­i­ties re­lated to ac­quir­ing land to­day pro­vide huge ar­bi­trage to such peo­ple. If the government starts sim­pli­fy­ing the process, mid­dle­men can be elim­i­nated, re­duc­ing the cost ar­bi­trage and pass­ing the ben­e­fit to the ac­tual land own­ers.

Un­til that hap­pens, the avail­abil­ity of fool-proof deals in land will re­main scarce on the ground. For the record, a good deal is one wherein one can buy, in one go, a clean ti­tle prop­erty that com­plies with all government plans and stip­u­lated us­ages.

How to avoid bad land deals

One can avoid bad land deals by us­ing ex­pe­ri­enced lawyers for the trans­ac­tion, do­ing a de­tailed due dili­gence, em­ploy­ing the ser­vices of a re­puted real es­tate con­sul­tant with in-depth mar­ket knowl­edge.

When it comes to land ac­qui­si­tion, there is no ques­tion of a free lunch or short­cuts. If some­thing about a land deal seems out of whack, then it can be taken for granted that there is an is­sue with the land. As things stand to­day, fraud hap­pens as be­cause peo­ple buy land with­out com­plete due dili­gence, which leads to faulty ac­qui­si­tion of land with ti­tle is­sues.

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