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Legal sanctions to check before buying

Legal sanctions to check before buyingThese documents include building plan, layout approval, nod for basic facilities and no objection certificates, says Shyam Sundran, a legal expert
A builder needs to get certain legal sanctions before the commencement of any construction activity. If you are planning on investing in property, it is worth the time and effort to check if the builder has already got it.

Any building constructed without sanctions or deviated-from more than 5 per cent from the approved plan draws a penalty and authorities have the right to demolish the building without any prior notice.

Shyam Sundran, a legal expert and advocate, explains the sanction documents prospective buyers must check before putting in their hard-earned money.
List of sanctions required for construction activity include:

  • Building plan: This needs to be submitted before the commencement of construction. Hence the date registered in the document is important. This is important also because once the building plan is approved, the builder should commence construction within two years or there is a penalty for this as well and the approval can be cancelled as well.
  • Layout approval: This too needs to be got before commencement of. In case the commencement date and the stage of construction do not match, it means the approval was given later. In this case, the layout can be treated as unlawful and exemplary penalties will be levied as per municipal laws. Also, land which is sub-divided into plots for towers without permission from competent authority can also be considered unapproved layout. This means no facilities such as roads, drainage or street lights will be extended to such areas.
  • Basic amenities: The builder needs approval from concerned authorities for electricity, water for potable and non-potable use, and lately recycling plant plans as well. The building needs to comply with all such building laws for sanction or approval of basic amenities.
  • No Objection Certificate (NOC): The NOC from pollution board on the project is a must today. Several states are also introducing the NOC concept from surrounding properties as well in order to prevent encroachment disputes later. An NOC is also required for digging a borewell and even when it comes to the height of the wind-energy technology installed on roof tops of several buildings today.
  • Approval for conversion of land: Builders often buy agricultural land and convert it for residential use. In such a case, buyers need to ensure two things (1) the property is non-agricultural land now and (2) Approval for conversion from relevant authorities are obtained before commencement of any construction.