Floor wise selling

[chandil]

I have an interesting case which needs astute legal inputs.

My friend has a 30X40 site within BBMP limits, on which he has built 4 floors when he had obtained permission to build only 2 floors. Now he wants to sell the propert floor wise and put his property for sale. he wants to retain the first 2 floors and sell the top 2 floors.

Please opine what status would the legality of the top 2 floors?

Would they be eligible for bank loans?

How do we valuate such properties?

[blrsiteseeker]

I cannot talk to the legality etc. but valuation and pricing would be similar to how apartments would go about doing it I suppose.

[niarhab]

its illegal,he cant build 4 floors and sell top two.

[arigilamurali]

Dear Chandil,
I don't think any person will come forward to purchase such illegal structure ( top 2 floors) by taking risk,any how selling and purchasing of such property cannot be called as illegal,but only construction might be illegal. If BBMP regularize your friend construction,then such construction will become illegal and your friend OR any future prospective purchaser can enjoy it by getting katha and other documents in his name.

Absolutely there is no problem for selling and purchasing in accordance with the manner how apartments would be divided shares, provided at the time registration you need to place katha and tax paid receipts to complete the sale transaction to the whole property..

regards
murali
advocate
arigilamurali@gmail.com

[niarhab]

Dear Murli
I agree with your views on buying and selling of legal properties . But my understanding with limited knowledge is BBMP has never legally approved 4 floors on 1200 sqft residential site. May be in the future this might happen if FAR is increased. But until then is it not risky to buy such property? your views on this will help many on this forum.
regards
nair