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The word ‘Gaothan’ is a Marathi word which is derived from the words ‘Gaon’ (which means ‘village’) and ‘Than’ (which means ‘site’). As the name suggests, the word ‘Gaothan’ is used to denote sites in and around the old rural or village areas of Maharashtra.
As per the definition in the Maharashtra Land Revenue Code, 1966, gaothans are pieces of land which come under the geographical boundaries of a village, city, or town as per Section 122 of the code. A gaothan property can be used for building residential units, schools, commercial establishments, religious establishments, parks or playgrounds, medical facilities, and so on.
When compared to other properties within the city limits in Maharashtra, the gaothan property rates are much more affordable. The rates, however, differ from region to region. For example, the rates of gaothan plots in Navi Mumbai are around Rs.70 per sq. ft. Plots which are around 1,000 sq. ft. can go up to Rs.1 lakh.
Gaothan properties are legal. However, when you are dealing with one of these properties, it is important to do a background check of the property and find out the property title. If you are planning to buy a gaothan property, make sure you buy that only from a developer. The local development bodies such as CIDCO and BMC also run different housing schemes under which these properties can be bought. Whenever, you deal with a gaothan property, make sure that the property ownership and title transfer is put into effect as per the prescribed legal procedure.
Take note of the fact that if you are planning to buy a property from the owner directly, you will be required to get the transfer approved by the local development authority. The property ownership transfer will be valid only after the transaction is authorised by the development authority. The buyer of the property will also be required to pay a transfer fee in this case.
Usually, banks do not provide home loans for the purchase of gaothan properties. However, even if a bank offers a home loan for the same, it does not guarantee the legality of the said property.
You will be required to provide a few documents which are critical at the time of buying a gaothan property. These documents are as follows:
Provided you follow all the legal procedure at the time of making a purchase of a gaothan property, it is safe to invest in it. One of the most important aspects in this case would be to get in touch with the local development authority or the local revenue department to find out if the property is enlisted under one of the projects of the schemes led by the government. It is advisable to not buy a property which is not going through the channel mentioned above, as it might end up in some kind of dispute.
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