What are the differences between pre-approved and un-approved property?

What are the Approving authorities

Whenever you are buying a property you must find out if the property that you are buying is a pre-approved or an un-approved property. And if it’s a pre-approved property you need to check which authority it is approved from.

A property can be approved by two authorities namely DTCP and CMDA.

There are some pre-requisites that are required for a property to get approved like road, park, and the number of plots in the layout. Whichever property meets these criteria will get an approval number and this number will be then be verified by the DTCP or CMDA.

 Investing in a property is an easy thing to do but you need to make sure that there are no legal issues associated with it so that you don’t get any surprises at a later point in life. You should always look for pre-approved properties which are disclosed by the builders usually. Some under construction buildings get stalled because of some approval or because of some documentation issue. You never know when such properties will get the required approvals for the construction to restart. This will leave an emotional effect on your mind too. Hence, it’s always better to go for pre-approved properties so that you are free from getting worried about the builders’ documentation and the legal issues related to the construction.

What does pre-approved property mean?

A pre-approved property means that all the documents and approvals required for a property are all examined and approved by a bank or financial institution which the builder would have requested for. The financial institution has a process and a lot of things that they take into consideration like checking the track record of the builder etc and issues a preapproval letter.

What does un-approved property mean?

An unplanned and unsystematic property development is a warning sign of Un-approved development. Such developments are mushrooming in the city on daily basis. There are a lot of residential and commercial developments coming up in localities without approvals from the required authorities. The buying and selling of such properties are not possible as per the law.

There has to be a process that needs to come in place for regularizing the unapproved colonies. This will help to make the property a legal property which is registered with the required authorities and approvals.

There are a lot of rules developing across the country for regularization.

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