Illegal construction: Impact of buying an illegally constructed flat
The construction of unauthorised buildings on non-permitted land or the encroachment of land has become quite a menace in most of the cities. Doing this is not only impacting the state authorities but also the investors. Earlier this year, various cities like Delhi and others have banned the construction of unauthorised building and encroachment of land by passing various laws. Permits are quite expensive and most of the home inspectors often demand inconvenient and costly changes.
Why should a property be approved by the government?
A land should be approved in order to avoid the investor from falling into risk in the future. Most of the investors are not aware about the unapproved land and also there are many home owners who construct additional housing spaces which are not permitted by the government. Each city has a local municipality which issues building permits for construction which can avoid creating chaos among the public. In order to obtain a permit, certain information must be provided to the local Building Official having jurisdiction. Also in case a property owner violates the rule, he/she will be imposed with penalty for non-compliance. Henceforth, the problem is transferred to another buyer if he/she buys the property. In case an investor has brought a non-permitted land and has incurred loss, the owner of the building will be held responsible and can be sued for cheating the buyer. The same follows with faulty workmanship as well. Also if a building is constructed on a non-permitted space, it will affect the resale value of the building.
What should a buyer consider before investing in such a property: Do’s and Don’ts
There are various things which an investor should consider before buying a property. Doing this will help him to know if the property is unregistered.
Do’s for a buyer |
Don’ts for a buyer |
| Ensure the property has a clear title | Avoid buying unapproved lands. |
| Study the property thoroughly | Avoid buying plots with no approach road. |
| Inspect the builder’s track record and talk to owners of flats in his prior projects | Avoid deviating the approved plan and violate the rules in the construction. |
| Avail a token loan from a nationalized bank | Avoid converting the parking space in commercial complexes, apartments, etc. |
| Ensure the project has all permissions | Avoid encroaching the government & public property. |
| Ask for a bar chart of the various stages of construction | Avoid engaging unqualified people in the name of construction engineer for construction purposes. |
| Ensure that there are negative covenants | |
| Get the building architect to certify the flat’s carpet area and consult a professional to check the building plan | |
| A builder cannot sell open/stilt car parking space or pocket terrace. | |
| The investor should buy a plot which is registered under the city municipality. | |
| Ensure that there is easy accessibility to all the means of transport. | |
| Anyone can report the unauthorised, unsafe constructions and violations without disclosing their name. |
