What are various approvals required for construction of a real estate project? Prepare yourself to ask about these approvals before you invest in property.
In a real estate project, there are more than 30 approvals required for construction. The process of getting these approvals from various government departments can be intimidating. We studied approval processes of various states and came up with this generic list of approvals required for construction of a real estate project.
The list is divided into 3 parts based on project stages. The first stage is feasibility stage – when the developer procures the Change in Land Use (CLU) Approval and ensures clear title of land while none of the drawings and plans are prepared in this stage. The second stage is the sanction stage – when consultants are hired to prepare various plans and assist in the approval process. Once all approvals & NOCs are obtained and the developer complies with all regulations, he is issued Commencement Certificate to start the construction. The third and final stage is post-completion stage which is when the buildings are completed and Completion Certificate and Occupancy Certificate are obtained so that the developer can offer possession to the customers.
Whether you are a home buyer, a real estate investor, developer or a banker, we are sure that you will find this list useful.
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