Before you invest in a property, it might be wise to appoint a lawyer to verify the legalities so that you don’t fall prey to unauthorised construction, say experts
The Bombay high court recently turned down a petition to stay its judgment dismissing the appeals made by some of the owners and the developer of a 21-storey tower in Kharghar to regularise the unauthorised spaces in the building. The developer had allegedly constructed 83 flats, 18 shops and one floor of office space in the building without the sanction of the planning authority. The ‘illegal’ portions now face the threat of demolition. "Ultimately, if they purchase flats without bothering to make inquiries and seeking details of the construction site, then they are to blame,” a division bench of Justice AM Khanwilkar and Justice SS Shinde said.
“It is often observed that a buyer restricts his examination of a property to its location, amenities and affordability,” says Rohit Kumar, head of research, DTZ India. “A regulatory and legal due diligence, which is vital to asses a property’s adherence to norms, is often ignored,” he adds. Since buying property is a significant move involving lakhs of rupees, it is important to guard yourself against possible disputes.
“Just like you buy a car and execute an insurance against it, similarly, when you buy property, you must protect your interests,” says Sunil Bajaj, a real estate consultant. The first step includes finding out if the developer has legal rights over the land where the property is being developed. Once the land title is clear, you should double-check the layout permissions sanctioned by the local authorities. “A lawyer, unlike your local broker, is qualified to check up on the legalities involved. So, it’s advisable to appoint one and validate the property’s legitimacy,” says Bajaj.
“The Intimation of Disapproval and Commencement Certificates give the developer permission to build up to a certain level after which the civic body inspects the construction and gives sanctions for higher levels. In the absence of these documents, the developer has no right to continue the construction,” says Naushad Panjwani, executive director, Knight Frank India. So if you are planning to buy a flat on the 19th floor of a building and the builder has permission to construct only till the 14th floor and is awaiting approvals, then your property will be deemed unauthorised.
THE NAVI MUMBAI CASE
The owners of 83 flats, 18 shops and one floor of office space of Green Heritage, a 21-storey tower in Kharghar, as well as the developer had approached the Bombay high court seeking the regularisation of the allegedly unauthorised parts of the building. According to the City and Industrial Development Corporation plans (CIDCO), the developer was initially permitted to construct 97 residential flats, 20 shops and a three-floor office building. But when CIDCO officials inspected the site, they found out that the developer had constructed 160 residential flats, 38 shops and a four-storied office building. The unauthorised portions of the building are now facing demolition. “Their (the buyers’) individual rights and interests are subservient to the concerns of public health and safety,” the judges said while dismissing the petition.
A CHECKLIST FOR BUYING PROPERTY
Conduct a thorough background check on the developer’s credibility by verifying the timeline of his earlier projects in terms of what was promised and what was delivered.
IT’S BEST TO APPOINT A LAWYER WHO WILL LOOK INTO THE FOLLOWING LEGAL FORMALITIES:
The Bombay high court recently turned down a petition to stay its judgment dismissing the appeals made by some of the owners and the developer of a 21-storey tower in Kharghar to regularise the unauthorised spaces in the building. The developer had allegedly constructed 83 flats, 18 shops and one floor of office space in the building without the sanction of the planning authority. The ‘illegal’ portions now face the threat of demolition. "Ultimately, if they purchase flats without bothering to make inquiries and seeking details of the construction site, then they are to blame,” a division bench of Justice AM Khanwilkar and Justice SS Shinde said.
“It is often observed that a buyer restricts his examination of a property to its location, amenities and affordability,” says Rohit Kumar, head of research, DTZ India. “A regulatory and legal due diligence, which is vital to asses a property’s adherence to norms, is often ignored,” he adds. Since buying property is a significant move involving lakhs of rupees, it is important to guard yourself against possible disputes.
“Just like you buy a car and execute an insurance against it, similarly, when you buy property, you must protect your interests,” says Sunil Bajaj, a real estate consultant. The first step includes finding out if the developer has legal rights over the land where the property is being developed. Once the land title is clear, you should double-check the layout permissions sanctioned by the local authorities. “A lawyer, unlike your local broker, is qualified to check up on the legalities involved. So, it’s advisable to appoint one and validate the property’s legitimacy,” says Bajaj.
“The Intimation of Disapproval and Commencement Certificates give the developer permission to build up to a certain level after which the civic body inspects the construction and gives sanctions for higher levels. In the absence of these documents, the developer has no right to continue the construction,” says Naushad Panjwani, executive director, Knight Frank India. So if you are planning to buy a flat on the 19th floor of a building and the builder has permission to construct only till the 14th floor and is awaiting approvals, then your property will be deemed unauthorised.
THE NAVI MUMBAI CASE
The owners of 83 flats, 18 shops and one floor of office space of Green Heritage, a 21-storey tower in Kharghar, as well as the developer had approached the Bombay high court seeking the regularisation of the allegedly unauthorised parts of the building. According to the City and Industrial Development Corporation plans (CIDCO), the developer was initially permitted to construct 97 residential flats, 20 shops and a three-floor office building. But when CIDCO officials inspected the site, they found out that the developer had constructed 160 residential flats, 38 shops and a four-storied office building. The unauthorised portions of the building are now facing demolition. “Their (the buyers’) individual rights and interests are subservient to the concerns of public health and safety,” the judges said while dismissing the petition.
A CHECKLIST FOR BUYING PROPERTY
Conduct a thorough background check on the developer’s credibility by verifying the timeline of his earlier projects in terms of what was promised and what was delivered.
IT’S BEST TO APPOINT A LAWYER WHO WILL LOOK INTO THE FOLLOWING LEGAL FORMALITIES:
WHETHER THE DEVELOPER has a title certificate that transfers the ownership rights of the land in his name and later in the name of the housing society.
WHETHER THE PROPERTY is being illegally developed on agricultural or reserved or forest land. Ensure that there are no disputes involving the land.
WHETHER THE DEVELOPER has obtained clearances from the environment ministry, and other central and state government approvals.
WHETHER HE HAS OBTAINED clearances from water works, power and telecom companies.
WHETHER THE DEVELOPER has obtained a layout and design plan sanctioned by the local authorities
WHETHER THE PROPERTY has obtained the Commencement Certificate (in case of under-construction property) or Occupation Certificate (in case of ready property).
IN CASE OF RESALE PROPERTIES, ask for an examination of past transactions and check if the agreements have been registered and stamped.
BEFORE SIGNING THE BUILDERBUYER agreement, get a lawyer to verift that thhere are no loopholes or vague clauses. Get the agreement registered and stamped.
Renuka Rao, Hindustan Times (Mumbai)
http://paper.hindustantimes.com/epaper/viewer.aspx
WHETHER THE PROPERTY is being illegally developed on agricultural or reserved or forest land. Ensure that there are no disputes involving the land.
WHETHER THE DEVELOPER has obtained clearances from the environment ministry, and other central and state government approvals.
WHETHER HE HAS OBTAINED clearances from water works, power and telecom companies.
WHETHER THE DEVELOPER has obtained a layout and design plan sanctioned by the local authorities
WHETHER THE PROPERTY has obtained the Commencement Certificate (in case of under-construction property) or Occupation Certificate (in case of ready property).
IN CASE OF RESALE PROPERTIES, ask for an examination of past transactions and check if the agreements have been registered and stamped.
BEFORE SIGNING THE BUILDERBUYER agreement, get a lawyer to verift that thhere are no loopholes or vague clauses. Get the agreement registered and stamped.
Renuka Rao, Hindustan Times (Mumbai)
http://paper.hindustantimes.com/epaper/viewer.aspx
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