In a minor relief to the builder community, the government has issued orders amending building rules so that the mandatory mortgage could be made from the upper floors of the structure too.
So far, the mortgage was to be made from the ground to second floors of the building.
According to a clause of the building rules, the builder is required to hand over 10% of the total built-up area, in the ground or first or second floors to the sanctioning authority, for issue of building permissions.
The property will be released only after the authorities ensure that there are no deviations from the sanctioned plan, before issuance of occupancy certificate.
There have been representations to the government from developers, saying that some times the owners who hand over the properties for development are unwilling to hand over their share for mortgage.
Owners usually opt for lower floors of the structure as their share owing to saleability factors, and this poses problem for the builders.
Hence, considering this, the government has issued orders allowing mortgage of upper floors too, as the case may be.
