Don’t get stuck with a bad land deal
Do your due-diligence and get a clean title property that complies with all rules
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.