• Commercial use of a residential property

Dear Sir, I want to start a diagnostic centre with pathology and radiology( only usg and xray) with a doctors chamber facility. I have seen a property which is a standalone building on a main road side. The building is a newly constructed with G+3 and parking space in front. The building has boundries all side and a gate for entry and exit. No one has stayed so far in this flat and is being made for residential use. Now the owner wants to rent it to us for commercial use. Therefore, we would want to know what should be the convenient way to start the centre in this building and what all legal things need to be addressed. Can this building be used for commercial purpose or the owner need to convert the plan to commercial or only the paying of commercial tax will suffice for smooth running of the business in future. Thanks in advance, Regards, Sanjay, Kolkata
Asked 6 months ago in Property Law from Kolkata, West Bengal
Religion: Hindu
1) you need permission from municipal corporation for running diagnostic center in residential complex 

2) enter into registered leave and license agreement with flat owner for running diagnostic centre 

3) since no society has been formed of flat owners permission of builder would be required 

4) muncipal corporation would grant permission on payment of property tax for commercial purposes 
Ajay Sethi
Advocate, Mumbai
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Hi, you have to request the local authorities to change the usage of the Building from residential to commercial purpose and if the permission is granted then you can use for commercial purpose. Here your water meter and electrical bill and tax paid to authorities will increase.
Pradeep Bharathipura
Advocate, Bangalore
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The Supreme Court has answered the question of doctors using residential property for their clinic in the following terms "To  put  the matters beyond ambiguity, we clarify that the doctor  can  have  his  clinic with a table, a bed to examine the patient and such facilities which may  be necessary to provide first aid.  A dentist may have a dental  chair  in  his clinic.  Under this head, neither a polyclinic nor a  nursing  home  can  be run in the residential area"
Ashish Davessar
Advocate, Jaipur
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In cases where zoning laws and the co-operative housing society in question permit it, there can be cases where running a business from home is viable. Doing so can save on the cost of renting or purchasing a commercial space. It is certainly necessary to get the approval of the housing society in a general body before using a residential flat for commercial purposes. Depending on the nature of the business and also subject to the approval of the housing society, it may also be necessary to obtain permission from the local municipal authorities for conversion of the flat into a commercial establishment.  Nevertheless, it is not a good idea to start any kind of business in a residential flat without getting complete clarity on the legal aspects.  Even if a housing society permits business activity in a certain case, such activity can still be deemed illegal and be notified accordingly. It is not advisable to take anything for granted, and to have the legality of such an undertaking examined by a qualified lawyer.
There are various supreme court judgments which act as guidelines to this problem.
T Kalaiselvan
Advocate, Vellore
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