Purchase of commercial property (shop) from builder
D.KRISHNA MOHAN
(Querist) 09 October 2016
This query is : Resolved
Hi.. I am planning to purchase a shop from the builder in a newly constructed residential cum commercial building in Navi Mumbai.
I would like to know what are the precautions to be taken and what documents are required to be checked. Also whether there are any statutory compliance requirements under Shops & Establishment Act. I will be giving it on rent. Hence, I presume there will be no Labour law requirements. Please advise.
Thanks
C.A. Krishna Mohan
P. Venu
(Expert) 10 October 2016
The matter requires professional consultation.
D.KRISHNA MOHAN
(Querist) 10 October 2016
Can any one clarify my doubts please.
Kumar Doab
(Expert) 10 October 2016
Opt for complete legal opinion from a professional counsel.
Rajendra K Goyal
(Expert) 10 October 2016
You are going to invest huge amount, take professional consultation / get the documents scrutinized through local lawyer.
M V Gupta
(Expert) 13 October 2016
Before purchasing the shop u will have to satisfy urself about the following:
1. Owner's title to the property. Please note the Builder is not the owner unless he has purchased the property from the owners.
2.Builders right to develop the property- such as development agreement, POA given to the builder by the owner/s of the property etc. and whether the documents are properly stamped and registered.
3. Whether there are any charges or mortgages and third party rights created on the larger property on which the building is constructed or the building.
4. BMC approval for the plans and Ar
-chirtect's certificate that the building has been constructed strictly as per approved plans and that there are no violations of the approved plans.
5. Whether the BMC has issued the OC and the CC.
6. Whether the builder has filed the necessary information under the latest Housing Regulations Act passed by the Parliament.
The above needs scrutiny by an advocate well versed in the matter. He will suggest suitable documents to be obtained from the builder apart from the usual agreement for sale.
For purchasing the shop no permissions from any authority is necessary. No labour laws are involved for giving the shop on leave license or lease basis. Unless u intend to start ur own business in the shop, u need not comply with the provisions of the Shops and Establishments Act.
Rajendra K Goyal
(Expert) 13 October 2016
Can proceed as per advice from expert M V Gupta.
Kumar Doab
(Expert) 13 October 2016
'The above needs scrutiny by an advocate well versed in the matter'
Agreed with Expert Mr. M.V.Gupta.
D.KRISHNA MOHAN
(Querist) 13 October 2016
Thanks for the inputs. They are really helpful.
Kumar Doab
(Expert) 13 October 2016
You are welcome.
