Checklist for buying a Open Plot

Checklist For Buying a Property | Open Plot

Checklist For Buying a Property | Open Plot

What to consider before buying an open plot

Buying an open plot or a home is a great desire for most people, but there is always a confusion while choosing between an open plot and an apartment. When it comes to investing in real estate, Plot is the most preferred form of property.  Property investments are greater investments, and any mistake made throughout the process may cost the buyer a lot of money. Discover the importance of conducting a real estate market analysis for both real estate agent and clients. Learn how market analysis can help you make informed decisions about buying or selling a property.

Interestingly, while the land is a secure investment, who holds it cannot be determined by only a claim of ownership. The claim must be supported by several documents showing the property’s ownership status. With proper legal advice, scrutiny of documents and verification of relevant information pertaining to the property, the buyer can ensure that the investment brings peace of mind and a sense of security. But before you take a step, there are some vital factors to be considered. So, it is more important to check legal documents for buying a plot. Here we have mentioned the checklists for buying a property or an open plot.

Key Factors to check before buying an open plot


checklist before buying an open plots, plots vs flat


  • Place/Location

When purchasing a plot for investment, one important factor to consider is location. It’s critical to seek areas that are simple to get to. It’s also crucial to figure out how far the neighbourhood is from the city borders. Because the location is most important when it comes to earning a good return on investment. So do a Physical survey and access to the property.

  • Plot Specifications

If you’re looking to buy an open plot of land in Hyderabad to build house, the size or area of the plots should be considered. When purchasing plot, you should also consider the soil and topography and also it’s crucial to consider the super built-up area of the property and how it will impact your investment. The Super Built-up area of a premise is the saleable area, which includes the carpet area, along with the terrace, balconies, areas occupied by walls, and areas occupied by common/shared construction (e.g. lift, stairs, etc).
  • Real Value of the land/plot

Do not rush and get a plot in hurry, even though the deal looks nice. In addition to plot location, it is critical to assess the plot’s potential before making a purchase choice. Do your homework, get legal guidance if necessary, and even visit a real estate professional to determine the genuine worth of the land/plot. Housing valuation is the process of estimating the market value of a property based on its characteristics, location, and market conditions. It is an important factor in buying, selling, or financing a property.

  • Verifying the Title Deed

We all desire to acquire uncontested lawful land. As a result, it is vital to verify that the title is clear and that the seller has ownership rights to the property. If you wish undisputed legal possession towards an available vacant land, you want to impose a transparent title of purchase land. Whether it’s a residential plot, commercial plot, or investment plot, first confirm that there aren’t any unclear deeds.  Verify the seller’s title document to ensure that the land is in their name and they have the authority to sell it.

  • Seller  Verification

When it comes to purchasing a plot, it’s not only about the price, location or offer, apart from this the builder’s trustworthiness is equally important. There are many judiciary problems in purchasing plots. So it is more important to cross-verify the vendor’s property valuation. You have to additionally verify their past and present projects to check their performance.

  • Local Body Approvals

Taking approvals from local bodies is sometimes a pain, but they are an unavoidable obligation. It is necessary to verify if the plots have received the green light and permission paperwork from the local authorities. Check the necessary approval documents for the plots and make sure it is verified by a lawyer. When looking for property for sale or to buy an open plot in Hyderabad, be sure to look for HMDA approved layouts and Layout Permit numbers. By using LP numbers we can check land details on the HMDA website. Also check for RERA certification.

If it is a Gram panchayat layout of an open plot then check for the LRS (Layout Regularisation Scheme) & for building BRS (Building Regularisation Scheme) documents are mandatory.

  • Land Use Zones

If you are planning to buy an open plot in Hyderabad, then It is mandatory to check land use zones. We can only construct our home in residential zones only.

Residential Zone has 4 kinds of Categories. They’re:

      • R1 – Residential Use Zone
      • R2 – Residential Use Zone
      • R3 – Residential Use Zone
      • R4 – Residential Use Zone

We can also buy plots in SDZ (Special Development Zone) and GDPZ (General Development Promotion zone).

In the Peri-Urban Zone, we can use Only 25% of the total land available for construction. And if the construction is for residential purposes then the height limit of the building should be 15meters and for non-residential buildings then its limit is 18meters.

  • Encumbrance Certificate

This document certifies that the property is free of any legal or unpaid dues, as well as any complaints. It is recommended to check the validity of the encumbrance certificate.

  • Property Tax Receipts

To avoid any tax-related issues, it is mandatory to check the status of Tax payment.  It’s a good idea to request the seller’s original and previous tax receipts. Any unpaid tax debt might get you in legal trouble.

  • Non-Agricultural order

Did you know that in India, unless otherwise designated by the government, all land is used for agriculture? isn’t it fascinating? so, before engaging in any real estate activity, the land must first be converted to non-agricultural land (NA). There are various types of NA that you should be aware of. These are some examples:

      • NA – Commercial, NA – Residential, NA – Warehouses, NA – Resort, NA – IT/ITeS

Request a copy of the NA – Residential order from the seller.

  • Power of Attorney

If the landowner is an NRI, the seller should obtain a Power of Attorney (POA). The authorized agent may have limited or extensive authority to make legal decisions about the property, medical affairs, and finances, depending on the terms and conditions of the POA.

  • Documents required in case of loan outstanding

If there is a loan on the property you are purchasing, it is critical to conduct due diligence and review the loan related documents before signing a contract. As a potential buyer, you can ask the seller to pay off the outstanding home loan amount or a portion of it, obtain the original property documents from the bank, and have the property registered in your name before paying the balance.

Before making a purchase, the buyer should request that the loan be closed and obtain a no-dues certificate from the bank.

  • Importance of Khata book and Extract

A Khata is a document that proves the property was constructed in accordance with local laws, approved plans, and regulations. It is critical to check the validity and legal status of a property before purchasing it. Both the registration of land or property and the transfer of property require a Khata certificate.

  • Examine the Floor Space Index (FSI)

The extent of construction on a piece of land is determined by the Floor Space Index (FSI) of the land. For example, if you have a 2,000 sq. ft. plot with an FSI of 100 percent, you can build a house on 2,000 sq. ft. If the FSI for the same plot is 50%, you can only build on 1,000 square feet of land.

  • Appraisal

This is one of the most important things for investors. If we have transport facilities, medical and educational facilities near our plot then appraisal will be good. So, it is mandatory to look for land appraisals before buying an open plot.


If you are planning to buy an open plot, you should have to consider the above stated points before buying an open plot. This article is an eye opener for those who are looking to purchase a property. This article explains how to verify the property documents before buying an open plot in Hyderabad.

If you are looking to buy open plots in Hyderabad, Aspirealty is one of the best real estate companies in Hyderabad, which deals with the open plots sales. Some of Aspirealty ventures are mentioned below:

Amogh, Advaith and Kingsdell.

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