Residential Land

A residential area is a land use in which housing predominates, as opposed to industrial and commercial areas. Housing may vary significantly between, and through, residential areas. These include single-family housing, multi-family residential, or mobile homes.

What is Residential Land?

A residential area is a land use in which housing predominates, as opposed to industrial and commercial areas. Housing may vary significantly between, and through, residential areas. These include single-family housing, multi-family residential, or mobile homes.

Why Do You Need Residential Land?
Maintain Living Standards

Tax Benefits

Contrary to popular belief, a land loan will not fetch you any tax benefits. You may however, avail tax benefits on a land loan, only if you plan to construct a house on the plot in the near future. In this case, the tax deduction will only be applicable on the construction amount of the loan and after the completion of the construction.

Low on Price

Prepayment Charges

Since a plot loan is not the same as a home loan, it is very likely that the loan provider may charge a prepayment penalty. In order to be sure, do enquire with your loan provider about the same beforehand.

Rider Benefits

Interest Rates

Like other types of loans, the interest rates on plot loans can also be floating or fixed, depending on the bank and the prevailing market conditions. However, interest rates on plot loans are relatively higher as compared to other types of loans like home loans or auto loans.

Tax Benefits

Location & Type of Property

While home loans are available for all kinds or types or properties, a land loan may only be availed for the purchase of a residential plot. Another limitation in availing a plot loan is that the land in question must be located within the limits of the respective municipality or corporation. A plot loan is usually taken for the purchase of land with the idea of constructing a house.

Documentation:

• To purchase a piece of land, the following documents are required from the seller's end:

• Original Land Deed of the current owner, known as the 7/12 document and also the previous owners with the proper names on the title.

• Release Certificate from the bank, stating that the loan on the land has been completely repaid.

• Original property tax receipt and other bills relating to the plot.

• Daily payment during hospitalization: It gives monetary relief to a patient while he undergoes cure at the hospital.

• For the buyer, the documents required include:

• The Title Deed after it has been transferred to the buyer's name written by a Government licensed Document writer.

• Receipt from payment of stamp duty charges: Now, you can get your land registered in the sub-registrar's office or have your name added in the village office records, as may be the case.

• House Plan Approval: The State Municipality Act requires that a prior sanction be obtained by a person who wants to undertake construction activity for building a new house or modifying an existing one. The process has been made automated in most states and isn't time consuming. Your contractor, engineer or architect needs to take care of this. The architect needs to submit the Building Plan along with a prescribed fee for getting the building plan approval done.

Check these Documents while Buying Land:

The Deed Title

Check if the deed title is in the name of the seller and he has the full right to sell it. Insist upon looking at the original and not just a photocopy.

Encumbrance Certificate

This document can be procured from the sub-registrar's office where the deed is registered. It declares that the land is free of any legal hassle and unpaid dues.

Property Tax Receipts and Bills

Ask for the originals again and ensure all the payments have been made as this could lead to legal complications and more expenditure in the future.Apart from these, you must also check that the loans on the land are repaid with a release certificate issued by the bank and get the property valued for the exact land measure.

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