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Tata Capital > Blog > Loan on Property > Things To Consider Before Buying A NA Plot

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Things To Consider Before Buying A NA Plot

Things To Consider Before Buying A NA Plot

What is an NA Plot?

An NA plot or a non-agricultural plot is one that is deemed unfit to carry out agrarian (agricultural) work. Construction of homes, apartments, shopping malls, office buildings, and factories are some of the options to utilize NA plots. The land must be legally identified as non-agricultural land to carry out any construction or development activities.

What are the non-agricultural uses of land?

As a standard practice, land may be used for one of these purposes:

·         Agriculture

·         Residential

·         Recreation

·         Transportation

·         Commercial use

Only if the land is certified to be barren and unfit for cultivation activities other than agriculture may be done on that plot. For instance, one has to obtain an NA certificate under Section 44 of Maharashtra Land Revenue Code 1966 before constructing a building on land in Maharashtra. Non-agricultural land may be put to use for constructing residential properties. Depending on the location and the dimension of the plot, bungalows or apartment complexes may be constructed on an NA plot.

NA plots may also be used for recreational purposes like gyms, landscaped parks, sports grounds, etc. Another way of using a NA plot is for commercial purposes such as shopping malls, manufacturing units, warehouses, etc., depending on the location.

The government often makes use of an NA plot for the construction of roads and rail tracks to improve the transport infrastructure of that place.

What are the advantages of an NA Plot?

1.    Great Investment Option:

An NA plot makes a very good investment option, as the land value can appreciate over time since the demand for land is ever-growing and availability is limited. A loan against property is also available from all leading financial institutions to buy an NA plot.

2.    Construct Whenever You Wish:

An NA plot is one of the best bets for those who prefer an independent home to an apartment; they can construct a home entirely according to their pace and liking.

3.    Ideal for Commercial Purposes:

If the NA plot is situated in a strategically beneficial location, one may consider setting up own business unit or a factory, provided approvals are in place to set up a manufacturing unit there. In case the NA plot is near a hospital or a railway station, building transit flats on the land may be a good business option. One may even choose to come up with a marriage or a banquet hall that gives a source of income to the landlord.

4.    No Maintenance Costs:

Any house property involves maintenance costs. Even if the property is unoccupied, there is a need for upkeep, repairs, cleaning, taxes, electricity bills, etc. In the case of a non-agricultural plot, the maintenance cost is zero as it is a vacant plot till the time any construction takes place.

Things To Consider Before Buying A NA Plot:

Acquiring land has always been a lucrative investment option for Indians. The land is an asset that will surely appreciate. Till the time the Real Estate (Regulation & Development) Act 2016 came into force, there were grey areas in land deals. With the imposition of the Act, a lot of transparency has come into the process. However, one needs to be very cautious before buying an NA plot.

Some of the things one needs to consider before buying an NA plot include:

1.    Location:

One invests in the land to ensure maximum appreciation in value over some time. Hence, the location of the plot is a very crucial factor when choosing a plot. A land having the locational advantages as under have the potential of high returns:

·         An existing social infrastructure around the plot. For instance, land in the vicinity of a hospital or tourist places has an added advantage.

·         Encouraging track record of economic growth of the location.

·       Proximity to any place of commercial activity or a place having an IT cluster can prove beneficial.

·         Connectivity through the various means of transport and accessibility of the location is advantageous.

2.    Documents:

·         NA Order – this is of utmost importance. One needs to ensure the plot of land under consideration has been certified as non-agricultural land. Otherwise, the construction on that plot is deemed illegal.

·         Title Deed – before buying the land, one needs to ensure the seller possesses the right to sell the plot. The title deed of the land needs to be studied carefully to ascertain the rights of the seller. It is advisable to seek professional help to scrutinize the documents.

·         Encumbrance Certificate – this certificate proves the land under consideration does not have any legal complications. This document can be procured from the office of the sub-registrar for examination.

·         Land Deed – the buyer must insist on the land deed before proceeding. The original land deed of the current landlord, along with all the past owners, needs to be submitted to the buyer.

·         Release Certificate – this is another critical document one must check before buying the land. The Release Certificate shall ensure that the current owner of the land has cleared all his past dues with the bank.

Apart from the above, one must collect copies of all the tax receipts and bills pertaining to the land to ensure transparency.

3.    Site Visit:

Before investing in a plot of land, a personal visit to the site is essential. During the physical visit, you may measure the plot and ascertain the floor space index of the location. Professional help from a surveyor may be of help here.

4.    Credentials of the Seller:

In addition to the documents stated above, the credentials of the person selling the land are a crucial aspect. It's best to deal with those with a sound reputation where the title deed etc., are expected to be in order.


Buying an NA plot makes for a sound investment decision, as land value always appreciates over time. Many of the leading financial institutions, like Tata Capital, offer loans against property at attractive terms and easy documentation. Taking land on finance shall also help in getting all the documents verified beforehand, as the financier will apply due diligence to ensure there is no dispute.

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