7 steps to purchase a good plot of land
Many people seek to buy land lots as a kind of profitable investment, while many others only seek privacy when searching for a housing unit.
In order to purchase a good and trouble-free plot of land that provides safe investment, there are seven necessary steps you need to follow.
This article will put the details of these seven steps in a nutshell.
- 1- Choose the right city
- 2- Choose the suitable plot of land
- The cardinal direction of the plot
- 3- Verify the ownership of the plot
- 4- The reservation agreement
- 5- Drafting a sales contract
- 6- Consulting a real estate attorney
- 7- Land registration
1- Choose the right city
You can pick the right city that best suit you while bearing in mind several considerations, including:
– The geographical location and proximity to other cities
– The presence of basic safety requirements
– Availability of the basic services; water, electricity sanitation and telecommunication towers.
– The presence of road and transportation networks.
Some people think the temporary lack of basic services in some land lots is an opportunity to purchase, given their low price. This may be true, but it is not riskless and can mean a long wait until these services are provided.
2- Choose the suitable plot of land
It is not only about choosing the right city or neighborhood. The most important step after finding a good geographical area is choosing a proper plot of land that has several features.
The dimensions of the land lot have to be proportionate. You should compare the length and the width of the plot regardless of the total area.
A plot of land may, say, be of an area of 900 square meters, but its length and width may not be consistent. It may measure 15 x 60 meters in terms of dimensions, which makes it completely inappropriate in design. It may not give enough space for some designs despite its large area.
The shape of the plot
Engineers specializing in this field prefer the plots to be in square shape rather than rectangular.
The reason is that they are more flexible when designing a building, and that they give a better chance for further innovation in designs and work of architecture.
As for the technical aspect, a square plot has further resistance.
The cardinal direction of the plot
In summer, the sun-rays strongly hit the southern direction. Since Egypt has a long summer, the best direction for a land plot is northeast. The eastern or northern direction are also preferred.
Land facilities and services
Some services may exist in your land lot, such as power and telephone stations, which may obstruct your design and take a share from the original area of the land. They may also cause the price of land to drop.
It is also not preferable to buy land lots in the residential areas where disturbing service areas such as malls, restaurants and markets are located. The reason is that it can lower the price of land, besides being a source of continuous discomfort and pollution.
This does not negate the necessity of the presence of close services in the area or neighborhood, but they should not be adjacent.
Convenient building system
Each region or neighborhood has its own building system, so be sure to learn about the building system in each area.
For example, choosing distances between buildings is usually better than narrow spaces or slums.
The street width should preferably be around 20 meters.
You should also decide whether you want to buy a corner plot of land or one that is among the buildings.
This is up to your preferences and the average price you are looking for. Generally, land lots on the corner are usually more expensive.
3- Verify the ownership of the plot
Have you chosen the right plot of land for you? Then it is time to verify the ownership data.
First, get to fully know the legal owner of the land, before agreeing or paying any money.
This is done through checking the original owner’s legal documents of the plot, and reviewing the documents registered with the relevant land registration office.
Compare the actual specifications of the land lot with the specifications in the document, in terms of the area, dimensions, location and the region to which this plot belongs.
If a person has a power of attorney from the owner of the land, you should review the validity of this document and ensure that there are no other agents.
4- The reservation agreement
If you are seeking as much safety as possible while purchasing the plot of land, you can reserve land lots from among those offered by the Egyptian Ministry of Housing throughout the year.
You can reserve it via checking the ministry’s website and paying a down payment, then specifying the city and the suitable plot of land for you when the reservation date is announced.
5- Drafting a sales contract
After checking and thoroughly examining the land ownership documents, reviewing land specifications on the ground and making a reservation agreement, it is now time to draft a sales contract.
It is an executive step to officially record the sale and purchase process. Both the buyer and seller have to sign the contract.
Paying in installments, a buyer would make a down payment to the seller and agree to deliver the remaining payments at specified times in accordance with a payment plan.
The sales contract that stipulates pending obligations between the two parties, such as the sale in installments, is called an initial contract of sale.
After making the last installment payment, the title deed of the land should be finally handed over to the buyer.
The final sale contract includes the personal information of each party; the full name, nationality, religion, place of residence and the national identity number. It also contains details of the plot specifications; area, directions, and the agreed-upon price.
Two copies of the contract should be issued, so that each of the two parties receives a copy.
6- Consulting a real estate attorney
Hiring a real estate attorney is necessary before signing any type of contract.
The reason is that a lawyer, especially who is specialized in land and real estate, is always aware of real estate provisions, including new laws.
Besides, real estate lawyers also help you in reviewing contracts, making sure that they are valid, and discovering any loopholes in the contract that you may not be aware of.
Briefly, they protect you from any unexpected losses.
7- Land registration
Here we come to the last step after writing the sales contract, which is finalizing the registration procedures in the relevant real estate registry office.
Or else, you can obtain a power of attorney from the seller, giving you the full authority to dispose of the land plot.