1. Clear and Marketable Title
Institutional developers prioritize land parcels with a legally clear and dispute-free title. They typically require:
- Verified ownership documents, sale deeds, and succession records
- Absence of encumbrances, mortgages, or ongoing litigation
- Access to certified legal due diligence reports
Clear title ensures smooth acquisition, financing, and regulatory approval, which is critical for large-scale development.
2. Zoning and Land Use Compliance
Developers insist that the land is:
- Zoned for industrial, logistics, warehousing, or commercial use, depending on the project
- Free from restrictions related to agricultural classification, green belts, or conservation zones
- Accompanied by land use conversion approvals, if required
Land with pre-approved usage rights accelerates project timelines and reduces legal complexity.
3. Minimum Contiguous Land Area
Institutional developers typically seek large, contiguous land parcels, often:
- 10–100+ acres depending on the intended use (industrial park, logistics hub, etc.)
- Located in strategic corridors or near infrastructure nodes (highways, ports, airports)
- With scope for future expansion
Smaller or fragmented plots are less preferred due to layout inefficiencies and coordination challenges.
4. Access to Infrastructure and Utilities
They evaluate the availability of:
- Internal and external road access, including wide frontage and turning radius for heavy vehicles
- Electricity supply, water sources, drainage, and sewage connections
- Telecom and high-speed internet connectivity
Proximity to existing infrastructure reduces development costs and makes the project more viable.
5. Favorable Transaction Terms and Payment Flexibility
Institutional buyers may negotiate for:
- Deferred payment plans tied to project milestones or approvals
- Phased acquisition options, especially for large land banks
- Escrow arrangements to protect against title or documentation risks
- Seller support in obtaining local authority NOCs and mutation entries
Such terms help them manage cash flows and regulatory coordination during the acquisition process.
6. Environmental and Regulatory Approvals
Pre-cleared land is highly attractive when it comes with:
- Consent to Establish (CTE) from the Pollution Control Board
- Environmental Impact Assessment (EIA) clearance, if applicable
- Forest, coastal, or heritage zone clearance, where needed
This minimizes regulatory delays and investment risks in compliance-heavy sectors.
7. Exit Rights and Legal Safeguards
Institutional developers include clauses to protect their investment, such as:
- Exit clauses in case of regulatory denial or legal discovery
- Indemnity provisions for misrepresentation or title defects
- Arbitration and jurisdiction terms to handle disputes efficiently
These legal safeguards are standard in high-value, long-term development projects.
8. Support for Approvals and Conversion Assistance
Sellers or intermediaries may be expected to provide:
- Assistance in securing permits, mutations, and layout approvals
- Land demarcation, boundary verification, and site grading
- Liaison support with local panchayats, planning boards, or industrial development authorities
This ensures that the developer can begin construction and infrastructure provisioning without procedural bottlenecks.
