Going from residential to commercial? Don’t forget to check these facts
Conversion from residential to commercial property can be an open or exempted choice for people, depending upon the area of your residence. Some states allow up to 30 per cent area of a house to be used for commercial activities. Certain professions such as doctors, lawyers, etc, have been exempted from paying charges. However, this is mainly because they render ‘professional activities’ which are different from commercial activities.No one wants to grow a business or establish a commercial property without properly aligning with the prevailing law, as it could get you stuck in the mud. To avoid legal implications, go through the important set of pointers .
How to convert property from residential to commercial?
- It is absolutely essential to know everything about Zoning Lawin India, which primarily deals with the construction of buildings, and use of property or land.
- If your state sees the conversion permissible, get a sanction before converting your property.
- Before you apply, plan the area, and nature of business you want to use the property for.
- Apply in the municipal office in the prescribed format
- Depending on the terms, and number of years specified in the agreement, one has an option to go for either rent agreement (called leave) or a lease agreement.
- When labelling a land as commercial property, it is solely dedicated for commercial use which includes paying a specified fee. The civic body would levy charges on property, water and power supply keeping in mind parameters such as area, size and form of business.
- Going commercial also levies certain norms, for example, provisions for washrooms for customers, waste disposal tools, etc.
- Shop and establishment Act –If commercializing property is for the purpose of commencing a business, a license needs to be obtained under the Shop and Establishment Act, sanctioned by your state.
Converting residential to commercial property is a feasible option, as it is both in your comfort, and gives you chance to indulge in an economic activity. However, following rules is indispensable as its ignorance can cause litigation charges. It is recommended to consult a local legal advisor before moving forward with the decision of converting your property.