What is industrial land & how to buy Indl land
September 13, 2023 allwarehouse No Comments

What is an industrial land & how to buy, what to check during land acquisition?

Industrial land is firstly a land that is zoned  and converted for industrial use. This is non agricultural land in a location that is away from residences and dense population so as not to cause a health risk for many people. Industrial land is a deep and complex subject and an expert can help you acquire land suitable for industrial use.

Let’s split this into 2 stages:

 Stage 1 : what is required to first identify your industrial property and finalize the transaction before spending on diligence processes

  1. Location (Village name), Survey number, Address, Location coordinates: This helps in identifying the land and its surroundings and is the first step to location and legal diligence
  2. Extent of land – Size of the land parcel and its measurements
  3. Zoning and conversion status:  whether the land is suitable for the intended use
  4. Road width to check accessibility and widening proposals to check loss of land in future
  5. Frontage – to check visibility, access, approvals and more
  6. Ownership profile – Is the land owned by a single decision maker or by many and what is the way towards finalizing the translation
  7. Any gaps within the property – any canals, cemeteries graveyards, temple land, kharab land or government land, high tension electric lines, oil pipes etc within or adjoining the property could impose development restrictions
  8. Sketch of the site to establish the boundaries and shape for ability to use the property fully
  9. FSI – available and achievable – to work on project viability
  10. Cost / Price – to check for financial viability

Stage 2: The following needs to be checked while buying industrial land post finalization:

  1. Title due diligence – a competent lawyer is needed for the same to verify title documents like sale deeds, settlement deeds, inheritance and succession, legal heir certificates etc
  2. Possession of the land – It is important to walk the boundaries and within the land to check for encroachments and who is in possession of the property
  3. Revenue documents that prove possession and tax payments
  4. Examination of Encumbrances using EC (encumbrance certificate) for title, mortgages, charges, litigation, government dues etc
  5. Approval diligence need to be done at the competent authority to check for planning permits and plan sanctions to establish that the property can be put to the intended use
  6. Registrar of companies, firms etc to conduct searches on the entity owing the property to check for dues
  7. Searches on government dues outstanding that include all kinds of taxes and liabilities to the government –Kist receipts 
  8. Correlate Road width from the settlement A register ,
  9. Get a copy of  village Map ,
  1. Public notice in leading English and vernacular dailies are mandatory to ensure no hidden liabilities have encumbered the properties
  2. Land ceiling and government department searches to ensure that no ceiling or acquisition is due on the properties
  3. local enquiry from neighbors to enquire on any issues that are not found in the above process.

With all the above documents in hand , this is the right rime to reach out for a lawyer.

A good lawyer is a wise investment to ensure that your hard earned money is not wasted and a good broker ensures the rest including viability and other hidden matters that are not visible to a lawyer or anyone else.


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