Unauthorized floor in project

POSTED BY Aditya Jain ON October 9, 2012 2:44 pm COMMENTS (8)

Hello Guys,

Recently I have booked a flat in bangalore with a small time builder. The catch is he has got approval (BBMP approval) for G+4 floors but he built an extra floor (My flat is on 4th floor). Does SBI approves the loan for apartment in such project? The builder is saying that there are 20+ loan approved from SBI (total 120 flats in project) and he will get my loan approved as well. He is also saying this is quite common practice now a days in Bangalore and he will keep this floor for renting purpose only.

Even if SBI approves my loan, should I buy this flat? What are the complications, I would face in future if selling off this flat (or will live in that flat). I have given 20% of the money as booking amount.
What are your suggestions in my case?

Appreciate your help. Thanks in advance.

Regards,
Aditya

8 replies on this article “Unauthorized floor in project”

  1. chandan says:

    Hi,

    I have also the same problem. I got a good deal. The approval is for six house but he has done 7 houses. one extra house has been built in ground floor. I am interested buying in 1st floor. Please suggest what should I do?

    Regards,
    Chandan
    Chennai

    1. You need to discuss this with a real estate lawyer, its out of our scope !

  2. vicks says:

    HI Aditya,
    Who is the builder? I have similar kind of booking, so would like to know.

    Thanks in advance
    Vikash

  3. Aditya Jain says:

    Manish,

    Thanks a lot for your valuable suggestions. That’s correct as per the location, construction quality and other things (at the rate I am getting), this is a good deal but this is the only issue coming in the way. I will discuss this in detail with some lawyer and then decide finally. Right now I am kind of 80% stuck condition (as I have given around 10L as booking amount and agreement is done…. I know, it won’t be that easy to cancel the deal and get my money back).

    I have to analyze the risk of losing a small amount (50K or more on canceling the deal) or the entire amount. I have to calculate the risk and then only step in further.

    If any one have experienced any such issue, please provide your valuable inputs.

    Thanks again Manish,

    Regards,
    Aditya

  4. Aditya

    The way I see this situation as “high risk high return” plan , note that the issues can happen , but if you by pass them , you might be getting a great deal . So the whole idea is go ahead with the possible outcome known to you , so that you dont pass the buck on the builder and blame the govt or the builder

    Meet a good lawyer and discuss with him .

    Manish

  5. Biswa Singh says:

    I mean problem will happen during Khata transfer which happens after registration which inturn haapens when you get the possession.

    Please go to your lawer with all the docuemtns and tell him the whole story. They are the best people to guide you in this case.

  6. Aditya Jain says:

    Thanks Biswa Singh Ji,

    Thanks for your response. I understand that it’s good to stay away from small builders but some how I could not keep my distance from this project. Every thing else in this project is clean and clear. I got to know about this at later stage (my big mistake).

    He has got the Khata and project is 90% completed (possession is in 2 months). All other legal documents are clean.

  7. Biswa Singh says:

    Hi Aditya,

    It is always advisable to avoid small builders. They always violate the plan and construct somehting for which they have not got any approval.

    You may escape from all the issue but i think during Khata transfer there will be issue. Please check with the builders if he has khata if its already a built project.

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