Use of residential property into commercial one
Akshat Singh
(Querist) 30 January 2014
This query is : Resolved
Hi I have a residential row house to let in Surat, Gujarat under Surat Municipal Corporation jurisdiction.
I also have a prospective tenant. My question is this tenant would like to use my residential property for his office (commercial) purpose. Society members/chairman DO NOT have any issue with this arrangement.
But I would like things on documented and the right way.
1 - So, what formalities I have to do in order to get any clearances(local corporation) required if any.
2 - what does the tenant have to produce for the same?
3 - what are the tax implications?
4 - what kind of agreement is ideal for tenure of 1yr or 3yrs.
Akshat Singh
(Querist) 30 January 2014
there are two apartment of same size one is ready to move in (resale ) around four years old,another being built by om sarthak resizone infra developer will be completing in around 18 months.which one to chose, i am buying it for invetment purpose at present may use it in future.please give your opinion -
ajay sethi
(Expert) 30 January 2014
buy one available on resale basis as you are getting ready possession . there is no guarantee that other project will be completed on time in 18 months as claimed by builder .
ajay sethi
(Expert) 30 January 2014
residential premises cannot be put for commercial use . you are paying property tax on basis that property is used for residential purposes only . your property tax assessment would change . obtain permission of municipal corporation . enclose copy of NOC from society .
enter into leave and license for 33 months . get it drafted by a lawyer
Akshat Singh
(Querist) 30 January 2014
I also have a prospective tenant. My question is this tenant would like to use my residential property for his office (commercial) purpose. Society members/chairman DO NOT have any issue with this arrangement.
But I would like things on documented and the right way.
1 - So, what formalities I have to do in order to get any clearances(local corporation) required if any.
2 - what does the tenant have to produce for the same?
3 - what are the tax implications?
4 - what kind of agreement is ideal for tenure of 1yr or 3yrs.
Akshat Singh
(Querist) 30 January 2014
Thank you very much sir
ajay sethi
(Expert) 30 January 2014
thanks for your appreciation
Akshat Singh
(Querist) 30 January 2014
Thank you all, I have the acceptance from the housing society.
Also the nature of business is a Management consultancy who just needs space for team to work, most of the work would be at their clients place.
Devajyoti Barman
(Expert) 30 January 2014
Generally Municipality is not strict in allowing commercial activities from private premises.
However to avoid any trouble it is better if the tenant obtain Trade license to run such business.
