Buying Land2 min read
Nine questions worth answering before you commit capital to land
Most land that disappoints was bought without a clear answer to a small number of questions. None of them require an advisor to ask. They are listed here in the order a buyer can realistically work through them, before any money moves.
Written byAcreFlow Research Desk
Most land that disappoints its buyer was bought without a clear answer to a small number of questions. None of them require an advisor to ask.
They are in the order a buyer can realistically work through them.
- Who is selling, and do they have the right to? One seller, several heirs and an old power of attorney is the most common complication in Maharashtra agricultural land.
- Does the chain of ownership trace cleanly? Every transfer should be recorded. A gap is the thing to resolve before price is discussed.
- Is there an enforceable right of way? Not a track you drove on. A right that survives the seller.
- What does the plan in force say about this survey number? Not the village, not the area — the number.
- Is any part reserved? Roads, amenity and open-space reservations fall on specific parcels.
- What is permitted today, without a change of use? A case that needs a rezoning is a case that needs a decision by someone else.
- Is there a charge, mortgage or pending dispute? An encumbrance search is inexpensive relative to what it protects.
- What is the realistic holding period, and can you fund it? Land is illiquid. Capital you might need back inside three years is the wrong capital for this asset.
- What would make you sell at a loss? If there is no answer, the position has not been sized.
Why we publish this
A buyer who works through these will reject parcels we would also reject, and will ask us sharper questions about the ones that survive. That is a better client relationship than one built on asymmetry.
This is general guidance, not advice on any specific parcel, and it is not a substitute for a lawyer's opinion on a transaction you intend to complete.