Never Buy An Unapproved Property In India!

Everybody wants to buy a house of their own. The newfound ease of borrowing Home Loans has only added to the demand of new properties.

Banks and NBFCs (Non-Banking Financial Companies) now provide Home Loans with minimal documentation and quick loan disbursals. If you Apply for a Housing Loan Online through online financial service providers such as mymoneymantra.com, you could get Home Loans at really low interest rates. The loan turnaround time too is really quick and the processing fees are at a minimum. You can find loan offers from the country’s premier lenders and select the one that is most convenient for you with help and assistance from experienced and service-oriented professionals at mymoneymantra.com.

All the different types of housing loan in India including those for purchasing a flat, an individual house or a piece of land and for constructing a house on your own land are available here.

Like it happens with all things which have an indiscriminately high demand for, certain vices have crept in the property market too owing to the exponential growth in the demand for properties. And unless you are extremely careful and observant, you could easily fall prey to any of them. And easily the most damaging among them from a buyer’s perspective is an unapproved property.

What are Unapproved Properties?

Any building or a standalone house requires approval from the local development authority to assume a legal status. Any construction, if developed on a land belonging to its rightful owner and in accordance with various rules and regulations laid down by the government for safety purposes, should not face much trouble in receiving such approval. However, if there is an issue with either the ownership of the property, a lawsuit pertaining to the property or a discrepancy in its construction, then the authorities refuse to grant approval until the time the issue is resolved. Such properties are called unapproved properties.

Why Do Unapproved Properties Exist?

While the population and the demand for properties have both grown at a rate of knots, the area of land available in the country has obviously remained the same. The most natural consequence of this is that there isn’t enough land available to construct the buildings to meet the demand in the market. However, certain constructors and money-hungry people have found a ‘way’ out of this by resorting to unlawful means to acquire the land. They then develop the land so acquired, construct buildings on them and then sell them to gullible buyers.

Why Should You Never Purchase an Unapproved Property?

Purchasing an unapproved property can open up a can of worms at any moment for the purchaser. Here are some of the issues that may plague an unapproved property and its owner.

You May Lose Ownership of the Property

A vast majority of unapproved properties fail to receive a stamp of approval because of a dispute regarding its ownership. Developers often collude with a joint owner of the land and purchase it without the consent of the other owners or even snatch the land forcibly. They then construct the apartments in a quick span of time and sell them to naïve buyers. If and when the aggrieved parties decide to take the matter to the courts, the ownership of your flat comes into question. If the concerned parties fail to reach a settlement and the court rules in favour of the complainant, you stand to lose out on your property. This would result in a massive financial loss and would virtually leave you stranded on the road.

The Building May Not be Constructed in Accordance with Safety Regulations

More often than not, an unapproved building is constructed in violation of the safety norms. There may be a problem with the fire safety regulations or maybe the building would have more floors than what its pillars and the land beneath could support. Use of substandard construction materials cannot be ruled out either. Residing in such a building may pose a threat to your safety.

You May End Up Frequenting the Courts for a Long Period of Time

The Indian judicial system is infamous for long delays in settling cases. Litigation concerning the property would most likely take years to be resolved. You would end up frequenting the courts far too often and the lawyer’s inflating bill would also take a toll on your finances.

It is Difficult to Sell an Unapproved Property

It is difficult to find buyers for unapproved properties simply because no one would want to deal with the consequences of investing their hard-earned money in an iffy property (well you made a mistake; not everyone will!). If you plan to move to a better place and use the sales proceeds from this property for that purpose, you’d be left disappointed.

Before you decide to purchase a property, make sure you verify if the property has a government approval; because the most troublesome experience any home buyer could go throw is usually a consequence of purchasing an unapproved property. You can apply for a Home Loan online at MyMoneyMantra, where you have various options from reputed banks and NBFCs who can help you with purchasing legally approved property in India.

Also Read: Is it Possible to Add a Co-applicant for My Home Loan Who Isn’t a Co-owner in the property?