Your Complete Guide To Gaothan Property Investing

The phrase “gaothan property” is frequently used in Thane & Navi Mumbai. Such homes are a draw for homebuyers in Maharashtra. Their reasonable prices are compatible with low- and middle-income people’ tight budgets. The majority of individuals believe that investing in Gaothan properties is dangerous.

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These qualities are the subject of several misconceptions and legends. The most frequent worry is if a Gaothan property is lawful. This is a significant misperception according to real estate professionals. The legality of Gaothan properties is determined by a various government rules and programmes. Buyers should be aware of this in order to make wise and inexpensive investments.


Gaothan Property: What is it?

Gaothan literally translates to “place in the village.” These properties are owned by villager in certain Maharashtra’s major cities. A Gaothan properties are mentioned and defined in Section 122 of the Maharashtra Land Record. The District Collector determines the locations that fall inside the town, city, & village boundaries by surveying them. The State Government’s directive is then used by him to specify the boundaries of a Gaothan property. The limits are drawn while taking landowners’ rights into consideration.

Residents in Navi Mumbai & Thane who are on a low income have access to affordable gaothan properties. In order to enjoy city life, this populace chooses to invest in Gaothan properties over high-priced metropolitan districts. Low-cost investors are restricted to Gaothan neighbourhoods in Mumbai due to the city’s expanding real estate industry. The metropolitan environment and proximity to their places of employment make the locals happy.

However, there are problems with Gaothan characteristics. Due to the dearth of sufficient documentation, title issues involving Gaothan properties are fairly frequent. Investors avoid dealing with these assets for this primary reason.


Gaothan Properties’ history

The “Sade Barah Takka” plot in Navi Mumbai has long been the site of apartment construction. The project for the 12.5% Gaothan Expansion covers the construction. CIDCO first gave the villagers access to this land in exchange for agricultural labour. The land is eventually taken over by CIDCO. The beneficiaries of this arrangement are determined by the 7/12 deed and other land revenue papers. The Collector, Patwari, Tehsildar, Talathi, and other parties are in possession of both documents.

The status of a Gaothan property is determined by state rules and programmes. Property transfers under CIDCO’s 12.5% Gaothan Scheme (GES) need paying a transfer fee to a third party. In such circumstances, the transferee receives a clear, marketable, and legal title from the authorities. The property can then be transferred or sold to prospective purchasers and investors.


Is Purchasing Gaothan Property Legal?

A property must have accurate and full documentation to be legally recognised. If all the necessary paperwork is in order, investing in a Gaothan property is secure. The State of Maharashtra is assisted in illegalizing such properties by CIDCO. The best effort in this area is the 12.5 percent Gaothan Expansion Scheme (GES).

The plan permits a Gaothan property to be legally transferred to a third party. The party has to pay transfer charges for the process. Under a marketable title, this third party has the legal right to transfer and sell these properties. Cooperative societies and construction companies are the most frequent transferees of Gaothan properties.

A secure investment is guaranteed when buying a Gaothan property from legal transferees. Due to the buyer’s clear title, the property does not give rise to controversy. Development authorities must approve property transactions for transferees. The exceptions to this rule include cooperative societies and developers. The approval follows the transfer fee being paid. A lease agreement, an occupancy certificate, and complete construction are also required for transfer clearance.

Purchasing a Gaothan property at the channelized auction of State Government organisations is secure. Purchasing leasehold property is not a secure investment. Villagers have the right to retake possession of the property when the lease period has passed. On a Gaothan property, the title deed from a government agency prevents conflicts. If the occupancy document is unavailable, problems can arise.


Gaothan Property Registration Requirements

  • The main requirement for Gaothan property registration is sufficient documentation. The following documents are among the paperwork required for the procedure:
  • 5% of the property is allocated to the allottee in the Award Copy. It contains the details of the property as well as the name of the allottee.
  • The name of the villager who asserts plot registration appears on the Letter of Allotment. The document attests to the villager’s allocation of the Gaothan property.
  • The Letter of Intent (LoI) is given to allottees who receive the award copy by the development authority. It includes information about the Gaothan property that was assigned.
  • The terms of the lease between the property owner as well as the development authority are laid forth in the lease agreement. It also outlines the construction deadline, penalties, fines, and other terms of the lease.
  • The receipt for the transfer fee serves as documentation that the allottee paid the transfer money to the development authority.
  • The allottee is granted the title & rights to the Gaothan property by the final order. After agreeing to the terms of the lease and signing the lease agreement, this happens.
  • The development authority, a third party, and the property owner are all parties to the tripartite agreement (developer, society, builder, etc.). The agreement grants the new owner access to the State Government’s documents. It contains all the relevant details regarding the Gaothan property’s specs and transfer rights.

Customers should be aware that issues do not frequently arise with Gaothan properties. However, they must continue to maintain the records. It’s also essential to guarantee the existence of a development authority. Before making an investment in a Gaothan property, it is best to run a background check. Additionally, you ought to avoid “too alluring” offerings.


Gaothan Expansion Plan’s Function for a Gaothan Property

The population of Maharashtra has been steadily growing in recent years. Urban growth is also widespread in the state. To address this increase, the government is offering land to citizens at discounted prices. These rules are found in Section 18 of the Bombay Prevention of Fragmentation & Consolidation of Holdings Act, 1947. The laws control the purchase and expansion of land for Gaothan properties.

The District Collector is the one having the authority to alter how property is used. Before changing the land use rules, he contacts the local committees. The local panchayat frequently lacks sufficient personnel. In order to expand a Gaothan property, the town planning agency aids in the creation of village plans.

The Maharashtra Gaothan Growth Plan encourages the use of property close to town, community, and city limits. The area is available for purchase by farmers who own land within 200 metres of a Gaothan property. These purchases are covered under Section 44 of the MLR Code. Having such applications approved for approval forbids agricultural activity on the property.


Highlights of a Gaothan Property’s Expansion Plan

The justifications for buying a Gaothan home are consistently compelling. Buyers should be careful while investing in these homes. In order to confirm the legitimacy of the sale agreement, buyers need consult legal advice. They ought to look out for any malicious components. The legality of such properties is not assured by loan approval. The following things should be attended to:

  • Don’t accept property offers that seem too good to be true.
  • To purchase a Gaothan property, you must have the necessary funds.
  • Compared to urban properties, you might need to make some concessions.
  • Verify the validity of a Gaothan property registration with legal counsel.
  • Purchase the Gaothan property directly from the owner. Verify the necessary documents, background checks, and bank approval for your home financing.


Activities Permitted for a Gaothan Property under the Gaothan Expansion Scheme

Some activities can continue on a Gaothan property thanks to the Gaothan Expansion Scheme. Some of them include apartment complexes, medical offices, dining establishments, and repair businesses. Retailers, community centres, and financial institutions can all continue operating. Additionally, social organisations, parks, playgrounds, etc. may stay on the site. Worship spaces double as places to store crops and plough manure. There can only be five animals per story in domestic animal stables.

Boat repair, storage, and maintenance are additional facilities. On the Gaothan property, it is also possible to conduct fishing, store gasoline, and dry nets. There are also public restrooms, service businesses, pharmacies, centres, and medical facilities. On plots with a maximum area of 0.20 hectares, warehouses and refrigerated storage may still be present. There are local government entities as well as essential public services and resources. Traditional living facilities may also be present on a Gaothan property.


Summary of the Gaothan Property

Real estate ventures frequently involve gaothan estates in Maharashtra. Villagers from the state’s numerous villages and cities predominately possess these properties. Buying a Gaothan property may end in a lawsuit and legal problems due to inadequate documentation. Before making an investment in these properties, buyers should confirm property ownership. The safest choice is to invest in Gaothan properties through State Government programmes.



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