Whether it is beneficial to buy a Collector approved property or not?


Collector Passing Property is the commonly used terminology for properties (houses, plots or flats) that receive the CollectorÕs permission for construction. When a person purchases a flat or a plot or a house, it must be on a Non-Agricultural land. If itÕs not, the owner or builder has to apply to the Collector to get the agricultural land converted into residential. This is why they are known as Collector Passing Property.

Once the owner or builder gets the CollectorÕs approval, he/she can then apply to the Municipal Corporation or City and Industrial Development Corporation of Maharashtra (CIDCO) to get permission for starting construction i.e. Commencement Certificate. After completion they need to apply for Completion Certificate and later Occupancy Certificate once they are sold out.Ó

As for charges, buyers have to pay 6 per cent stamp duty i.e. 5 per cent (government) + 1 per cent (Municipal or CIDCO) and 1 per cent registration charges. You can get loan against collector passing property if the title of the property is clear. I would suggest that show the property documents to local lenders to get legal clearance on the property for home loan.

Thus, you can buy Collecter approved property but please do check the history of the property before buying it.

Reference: Transfer of Property Act, 1882



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