The land is one of the most sought after investment opportunities in Pakistan. This fantastic investment opportunity yields good returns, ensures safety and helps the person achieve financial freedom.
Whatever real estate type is chosen for investment in Pakistan, the investment should be studied as a whole before committing to buying it. It is crucial to look for all the warning signs while buying a parcel of land.
This blog brings you a list of warning signs to look for when buying vacant land in Pakistan. To know more about these warning signs, keep on reading.
Important factors to keep in mind before investing in the land:
- Ensure that the project is compatible with your financial means. In short, do not invest in projects you cannot afford.
- Do not hesitate to see several sites before deciding; this allows for a better market appreciation.
- Obtain the price of the land, including all taxes and show this to a real estate expert for an opinion.
- The location of the land will determine the daily life of the household. The prices can be attractive in far-flung areas, but you have to consider additional costs caused by the distance and the daily transport time.
- It is advisable to choose a land while thinking of its resale: a good location will facilitate it.
Warning signs to look for when buying Vacant Land:
Following are some of the most common warning signs that you should not ignore at any cost. Scroll down and learn about these signs.
Local Urban Plan:
If there are no documents or written proof of the land and the area where it is located, you should not consider buying it. Proper documentation and legal evidence are necessary to safeguard real estate investment.
It is possible to consult the local urban plan or other relevant development authorities that can tell you about the area’s future product where your land is located. Also, the urban program will give an idea of the evolution of the environment and specify the locally applicable construction rules.
Examples of the essential provisions included in the plan are – what type of construction is authorized, conditions of access and roads, service of the land by public networks (water, electricity, sanitation) and realization of individual sanitation, public highways and dividing limits, the volume of construction, parking areas etc.
Town planning certificate:
If the seller does not mention the town planning certificate, or if he tries to delay it, you might not want to risk your money. A town planning certificate is essential for making a safe and secure investment.
It indicates the town planning provisions and administrative limitations on property rights, the list of town planning taxes and contributions applicable to the land. It also shows whether or not the good is concerned by one of the pre-emptive rights.
It is recommended not to buy land before having obtained from the development authorities an operational planning certificate. It will indicate whether the project is feasible, given the characteristics specified in the request and whether specific architectural constraints must be respected ( shape of the roof, windows, the colour of tiles, etc.).
In addition, it is essential to check if the land is serviced, that is to say if the work necessary for the establishment of the house is carried out (supply of water, gas, electricity, telephone, evacuation and treatment of materials and wastewater, etc.).
In the absence of a public wastewater collection network (mains drainage) or the impossibility of connecting to it, the future purchaser will have to bear the costs of a non-collective sanitation installation. The seller is bound by a general obligation to provide information and must inform the purchaser of the situation of the property about sanitation.
The land is constructible, but the purchaser has to guarantee that it is serviced and connected to the networks, and he must verify that his project is feasible.
He should take into account the following things:
- The content of the subdivision regulations and specifications or failing that the subdivision order to ensure that the project is compatible with the provisions they provide
- The area and width of building facades.
- The work that may be imposed, including fences and plantations.
It is essential to find out about the soil condition from the development authorities or neighbours, if necessary. If in doubt, the use of an expert to carry out a soil study is recommended. Its cost is in addition to the price of the house. This soil test informs the purchaser of the need to provide the construction with special foundations and establish its cost. Indeed, in case of unstable basement, humidity, sloping ground, an additional charge of construction will be expected.
In addition, the seller informs the buyer in writing about the possible exploitation of a mine on the ground. Failing this, the purchaser may request the resolution of the sale or the return of part of the price;
Description of the land:
The description of the land must be crystal clear. It should have a specific location, area details and other relevant details. The preliminary contract and the deed of sale must specify whether or not the description of the land results from a demarcation. This is an operation carried out by an expert surveyor, which involves fixing the dividing limit of contiguous properties. It is established contradictorily between the various owners concerned. The boundary does not indicate the area but allows it to be calculated. The surveyor can be commissioned to develop the location of the land.
In the absence of a boundary and in case of uncertainty about the property lines, it is essential to have it established; its cost will be added to that of the land; costs can be shared with neighbours
In the absence of any mention in the preliminary contract and in the authentic deed specifying whether the description of the land results or not from a demarcation, the purchaser can initiate an action for nullity of the contract.
So, these are some of the thighs you need to keep in mind when you plan to buy vacant land in Pakistan. Go through the list and make a well-informed decision regarding your real estate purchase.
If you have any questions or queries, let us know in the comment section below, and we will get back to you as soon as possible.