Monday, August 6, 2012

Clarify Your Change in Land Use (CLU) Concepts

You must have come across developers selling plots of lands in the newly developing areas, calling these as soft-sales, at very low prices. Instead of rushing in to buy these properties, it is better to first inquire whether a CLU has been obtained or not from the government. Most of these sales are done when the CLU has been applied for but has not yet been obtained. What is this CLU and why is it so important? Does having a CLU authorise the builder to develop the land in question? The answers to these questions vary from state to state since the laws of each state pertaining to this matter are different.



Generally, whenever a developer wants to develop a land, he has to acquire the land from the land owner and seek permission from the government to make a different use of the land from the one which is being currently done. So, if it is an agricultural land belonging to a farmer, the builders have to become their owners partly or wholly depending on the requirements of different states and then seek the CLU certificate from the government. In the state of Haryana, CLU is granted only after the developers become the owners of complete land. In Punjab, the situation is a little complex as the developers need a license, separate from the CLU, for developing the land. For 10-25 acres of land, CLU can be given even if developer does not won the land but produces the letter from seller stating that he or she intends to sell it to the developer. License for these projects would be granted only when the developer proves that he own at least 10 to 50 percent of land. For mega lands of 100 acres or so, CLU in Punjab is given when 50 percent of ownership is of developer and has the letter of consent of ownership from the seller for the 40 percent of remaining land. License, in case of these lands, is issued only when the promoter has 90 percent ownership of land.


It has to be understood that the CLU is not the license of developing the land. So, even if a builder gets the CLU, it is not necessary that they are given the license to develop the land since the ownership requirements and other conditions are not met. Therefore, when you come across any such proposal from the developers of selling the land for which they have applied for the change in land use certificate, it is better to seek information not only about the status of this certificate but also about the license. You also need to be aware of the law and regulations pertaining to these land-use change certificates and licenses so that you can seek proofs of the same from the builders

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While buying property at lesser rates, when CLU and license have not yet been obtained, is very tempting, it is better to avoid the haste and seek total documentary proofs pertaining to transfer of ownership of land as per the government regulations before making any such investment.

Kamal bhatt is writer who frequently writes about various neharpar property like srs royal hills , srs royal hills faridabad & srs royal hills price list .