Check For Sanctions and Approvals Received by The Builder While Buying A House or Flat

Today real estate industry is one of the booming industries which offers good opportunity for investment. Builders are required to have approval or sanctions from various authorities for the construction of a building. You should check that the builder has received all the mandatory approvals while buying or investing in a real estate property.

Following include the list of approvals or sanctions required for builder for any construction activity:- 

i. Building Plan:
A builder should submit building plan before starting the construction activities. Building plan ensures that building complies with building laws. Once the building plan is approved, builder should commence construction work within two years and there should be no deviation from sanctioned plan.

ii. Layout approval:
The builder has to get approval of layout plan from concerned authorities before starting construction of residential or commercial building. Constructing building in unapproved layout will not be given permission to occupy or such layout plots will be treated as continuing offense and exemplary penalties will be levied as per Municipal Laws.


iii. Basic amenities:
The builder should get approval from concerned authorities for electricity, water for potable and non-potable use. The building should comply with building laws for sanction or approval of basic amenities.

iv. No Objection Certificate (NOC):
The builder has to get NOC from pollution board on the project. It is essential for the approval for sewer or water supply. It is also important to get NOC from the neighboring properties to prove that builder is not encroaching any neighborhood property. Builder has to get NOC from municipality or respective authority for digging bore well. Digging bore well without NOC or approval will be levied penalty and material used for digging bore wells would be seized. In case of construction of building with lift facility, builder has to get NOC from lift authorities.

v. Completion Certificate:
Completion certificate is mandatory for building constructed before selling or occupied. Issuing of Completion Certificate will ensure that the builder or owner has constructed the building as per approved plan.

vi. Clear Title:
The builder has to get clear title for the land or plot. Clear title ensures that the property is clear, marketable and it traces any charges or encumbrances created on the property and its present status. It enables a prospective buyer to know the chain of holdings, transfers over a period and check any dispute on the ownership of the property.

vii. Approval for conversion of land:
Some builders use agricultural land for constructing building for residential or commercial purpose. In such case builder need to get approval form concerned authority to convert agricultural land to non-agricultural (NA) purpose.