Buying a Shop or Office Space in Chennai: The Due-Diligence Checklist

Quick links: Title and land · Approvals · The unit · The building · Costs · FAQs · Sources

Buying a shop, office or showroom is different from buying a home. You're buying for the business it supports or the rent it earns, so the building's approvals, its running costs and who else is in it matter as much as the price. Here's what to check, in order, before you pay an advance.

This is general information, not legal advice. Have a lawyer verify the title and approvals for the specific property.

1. Title and land

• Trace the title back at least 30 years with the parent documents and an encumbrance certificate.
• Check patta, land classification and that the land isn't a water body or under acquisition. See our land documents checklist.
• In an apartment-style commercial building, check the undivided share (UDS) of land that comes with your unit.
• If the building was built under a joint development agreement, check that the seller's share includes your unit. See our JDA guide.

2. Building approvals

• Approved plan and approved use: confirm the plan sanctions commercial use for your unit. Under the Tamil Nadu Combined Development and Building Rules, 2019, no building may be put to a use that doesn't conform to the Rules (K S & K).
• Completion certificate: under the 2019 Rules, electricity and water connections can be applied for only after the completion certificate is obtained (K S & K). Ask for a copy.
• Fire NOC: multistoried buildings need a fire NOC from the Director of Fire Services before CMDA plan approval (TNFRS). Ask for it.
• Height and airport NOC: near Chennai airport or Tambaram Air Force Station, check any height NOC.
• TNRERA: the RERA Act's definition of an "apartment" expressly includes an office, showroom, shop or godown, so commercial projects come under RERA. Smaller projects can fall outside registration under Section 3(2)(a) (land up to 500 sq m or up to eight units). For a new project, check its registration. See how to check TNRERA registration.

3. The unit itself

• Carpet area: get it in writing. Commercial prices are often quoted on super built-up area.
• Frontage, floor and visibility: a ground-floor shop and an upper-floor office are very different products.
• Parking: is a parking space allotted to your unit, in writing?
• Power load and backup: what is sanctioned for the unit, and is generator backup provided?
• Signage rights: where can you put up boards?

4. The building and its running costs

• Maintenance charges (common area maintenance) and any sinking fund or corpus.
• Property tax: ask for the latest receipts and check for arrears.
• Occupancy: how many units are occupied or let? An empty building is harder to rent out or resell.
• Association rules: restrictions on trades, timings or signage.
• Existing tenant: if the unit is let, read the lease. See our pre-leased property guide.

5. Budget for taxes and charges

Stamp duty and registration charges, GST on an under-construction unit, and TDS when the price is ₹50 lakh or more all apply. See our tax guide for buying commercial property.

Looking to buy a shop, office or pre-leased unit in Chennai? Contact Jumbo Realty and we'll share verified options.