A residential property cannot be fully converted into a commercial property. It may be used as a commercial property for aome time by taking permission but that is it.
Change of user - residential to commercial
If a residential flat is being used as a commercial premises taking society NOC, and BMC is charging commercial tax, does the property become commercial forever thereafter. Such a residential flat which is converted to commercial, under redevelopment will the owner of same get a residential flat or a commercial shop. Please specify change of user permanently converts a residential to commercial.
Asked 6 years ago in Property Law
Religion: Hindu
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12 Answers
If prior permission is taken from BMC and society NOC is obtained it would be regarded as commercial property
on redevelopment owner should get commercial premises
Commercial flat will get after redevelopment because currently you are paying commercial tax to BMC, so BMC may grant layout plan for new project as per commercial.
1. If just application for change of usage or change of user can convert a residential property into commercial, and by paying bmc taxes, then all flat owners can do same, take society NOC, take bmc permission, pay commerical tax and get commercial property after redevelopment. How can that be practical. The society share certificate shows flat. Can this flat even be sold as a commercial property before redevelopment. Is there any clear law for this? 2. Why is it so then that if we stop using property as commercial and start using residential the property assement by Bmc again is charged for residential. 3. The original layout of current building shows same as flat, share certificate its flat, why would builder give commercial to such an user. Isn't their a cost difference in commercial property and residential.
Asked 6 years ago
The builder and the property would be residential. The change is only temporary. Till you use it as a commercial property.
1) if property is again used for residential purposes then intimation has to be given to society and assessment changed to residential
2) builder at time of redevelopment goes by assessment made by BMC and also society records permitting usage of premises for commercial purposes
3) generally society refuses to give permission for change of user from residential to commercial
See the building construction is the same all over in the world. Only the difference is the service provided by BMC whether to use the said building for commercial or residential.
When the layout is of residential purpose VB passed than BMC don't have rights to collect taxes for commercial purposes. After they collecting taxes from you in commercial purposes than they should provide you new redevelopment layout as per commercial.
No and it is benevolent act that society and BMC have allowed illegal act by charging legal tax.
Until no conversion order passed, property will remain residential and residential dose not allow to covert in commercial at least in societies.
AS i already informed - this is an illegal act with the support of BMC and society.
Everyone is free to use or rent the residential property for the commercial purpose if the housing management rules and the zoning rules allow it.
When it comes to the conversion of residential property for commercial activities different states have different kinds of rules and regulations.
If the state is allowing the conversion of residential property to commercial property, then one should get a sanction from the housing society before the property being converted.
Depending on the kind of business, it is also essential to get the approval from the local municipality authority for the conversion.
When a property is designated as a commercial property, it is always treated as a commercial property for all resolutions.
1. Three things that need to be kept in mind before converting the residential property into a commercial property are as follows;
- Acquire a shop and establishment license from the concerned municipal authority.
- Before applying, be careful about the kind of business that is carried out and the area that is required.
- Commercial charges would be levied on the property, power supply, water, etc. depending upon the property size, depending upon the area and the nature of business activity by the civic body.
It is necessary to note that not all the business that is conducted in the residential area are charged with commercial taxes.
2. So, it is always suggested that you follow all the rules and regulations and do a happy business without any complications!
3.it is confirmed that the landlord needs to pay an extra amount as commercial property tax when a residential property is used for the business purpose.
Everyone is free to use or rent the residential property for the commercial purpose if the housing management rules and the zoning rules allow it.
You can again change the use to residential I you want to
Once a property is marked as commercial property, it would be treated as a commercial property for all purposes, which includes paying more as property tax.
1. Yes the flat will be considered as commercial property until further application for change of use is filed with BMC and permission of society is filed.
2. No flat owner will not get shop in exchange of flat he will get a flat with permission to use it for commercial purpose.
