In fast-moving land transactions, especially in industrial or development-prone zones, thorough due diligence is critical to avoid legal, financial, and regulatory pitfalls. Speed must not come at the expense of scrutiny. The following categories of due diligence help minimize risk while enabling quick and informed decision-making:
1. Legal Due Diligence
- Title Verification: Confirm clear ownership and match with revenue or registration records.
- Encumbrance Check: Identify outstanding mortgages, liens, or legal disputes via encumbrance certificate or litigation search.
- Chain of Title: Review historical ownership documents to ensure no breaks or unregistered transfers.
- Sale Deed Review: Ensure the seller has the right to sell; verify powers of attorney, inheritance claims, or partnership rights.
- Government Approvals: Confirm land classification, permitted usage, and if conversion (e.g., agricultural to industrial) has occurred.
2. Zoning and Regulatory Compliance
- Zoning Classification: Verify current land use status under local planning and zoning regulations.
- Development Restrictions: Assess height limits, setback norms, FAR/FSI regulations.
- Rezoning Potential: If relying on conversion, check planning body timelines and procedural stages.
- Master Plan Alignment: Confirm whether the parcel aligns with upcoming city or regional development plans.
3. Physical and Site-Level Assessment
- Land Demarcation and Survey: Ensure accurate boundary marking via physical survey and match with official land records.
- Topography and Soil: Identify slope, drainage, and suitability for construction or industrial activity.
- Encroachments: Detect illegal occupation or informal settlements using site visits and drone or satellite verification.
- Accessibility: Assess entry/exit points, road width, and transport connectivity.
4. Infrastructure and Utility Access
- Electricity and Water Availability: Check for proximity to substations, water sources, or borewell feasibility.
- Sewage and Drainage: Ensure alignment with municipal or industrial drainage networks.
- Telecom and Internet: For data-driven or logistics uses, assess the availability of fiber or tower access.
5. Financial and Transactional Checks
- Market Price Benchmarking: Compare recent land sales or valuation reports to avoid overpaying.
- Tax and Dues Clearance: Ensure no pending land revenue dues, property taxes, or penalties.
- Seller Identity and Financial Standing: Validate authenticity, financial history, and reputation.
- Payment Structuring: Use escrow accounts or milestone-linked payouts to mitigate fraud risk.
