AP Govt May Exempt Independent House Owners From Mortgage Rule

Comments(2) Sub Category:Municipality,Realty News Posted On: Apr 13, 2011

Small plot owners in Hyderabad may exempted from the mortgage rule for constructing their houses. Succumbing to pressure from different quarters, including property owners, residential welfare associations and public representatives, the state government is contemplating to exempt small plot owners from the mortgage rule for constructing their houses. Under the mortgage rule, an owner or builder, who seeks building permission, has to either mortgage 10 per cent of the built up area or one floor to the respective municipal authority.

As of now, the mortgage rule applies for structures that come up on 100 square (sq) metres (120 sq yards) plot area and above in the entire state. With representations from people and elected representatives, the chief minister’s office (CMO) reportedly directed the Municipal Administration and Urban Development (MA-&UD) department to exempt independent house owners from the mortgage rule.

The mortgaged portion would be released if the owner constructs the building without deviating from the sanctioned plan and obtains occupancy certificate from the municipal authorities concerned. The civic body has powers to seize the mortgaged property if the owner deviates from the plan and constructs unauthorized structures.

Interestingly, the number of building applications has come down in corporations, municipalities, including the Greater Hyderabad Municipal Corporation (GHMC), after the mortgage rule was extended to even smaller plots.

Until last October, the mortgage rule was mandatory for buildings which came up on over 200 square metre plot area and above G+2 floors buildings as per the New Building Rules (GO 86).

“The proposal is to implement the mortgage rule for buildings in over 200 sq metres in Greater Hyderabad and 300 sq metre plot area in other corporations and municipalities,” said a senior MA & UD department official.

Sources said amendments to the mortgage rules are likely to be incorporated in the new draft meant for compilation of various GOs on building rules that were issued by the state government from time to time. The Director of Country and Town Planning (DTCP) has been entrusted the work of compilation of four GOs (Nos 86, 678, 302 and 569) issued since March 2006 for implementing new building rules. The new draft has also proposed some changes in parking requirements and set backs for buildings.

Times of India

2 Responses to “AP Govt May Exempt Independent House Owners From Mortgage Rule”

  1. Micheal says:

    When will this mortgage rule be cancelled..?

Leave a Reply



CommonFloor Property Search Mobile App now available on Android, iOS and Windows!