No Final Approval-Commercial Property

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Sprint7
Posts: 1
Joined: 26 May 2021 11:32

No Final Approval-Commercial Property

Post by Sprint7 »

Thank you for the forum,

I have a commercial property rented out to a tenant. The property has a Building Permit issued on the grounds that additional building density is purchased. This is due to the tenants extension (without the landlords consent) exceeding the permitted density.
My question:
1. Is it the tenants responsibility to purchase the extra density without any rights to the property.
2. What would be the situation if the Final Approval isn’t issued.
3. Can the Municipality insist that the extension is pulled down and what are the disadvantages of not having a Final approval.

Any advice appreciated.
Nigel Howarth
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Re: No Final Approval-Commercial Property

Post by Nigel Howarth »

Good morning Sprint7 and welcome to the forum.

I don't understand how the tenant obtained a building permit. My understanding is that to get a permit the plans submitted have to be signed by the owner of the property.

You need to speak with your lawyer about this - but I believe that the tenant cannot change the property in any way without the owner's consent and that he has no rights to the property.

Regads,
Nigel Howarth
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Pantheman
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Re: No Final Approval-Commercial Property

Post by Pantheman »

Sprint7 wrote: 26 May 2021 12:01 Thank you for the forum,

I have a commercial property rented out to a tenant. The property has a Building Permit issued on the grounds that additional building density is purchased. This is due to the tenants extension (without the landlords consent) exceeding the permitted density.
My question:
1. Is it the tenants responsibility to purchase the extra density without any rights to the property.
2. What would be the situation if the Final Approval isn’t issued.
3. Can the Municipality insist that the extension is pulled down and what are the disadvantages of not having a Final approval.

Any advice appreciated.
I'm confused here, If you has such a BP issued as stated, then the extension would have been up before the application?? Did you apply for a renewal perhaps and they spotted the extension??

then your questions

1. Your lease agreement would have stated that 'no changes can be made without written consent of the owner'. Ultimately you are responsible for the purchase as you are the owner and it affects your land. I mean if he was to leave, you'll be left with the same issue! He is in breach of contract and you could take legal action and sue him or get him out.

2. If you don't get final approval you cannot register the property on the title, effectively you'll have a land title. The authorities could produce their own FA and add a prohibition note to it meaning you cannot transfer nor mortgage the said property.

3. They could if they wanted to, do you want them to? and the consequences is as 2 above.

Why not negotiate with the tenant get him to pay and do things properly, if he doesn't then you have the legal route.

Do you even have a lease agreement in place??

You'll be better advised to seek legal advise on this matter.
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