What is IOD in real estate?

Hello! I am a legal advisor by profession. I can help you understand what is intimation of disapproval. I have been involved in real estate legal services for a long time now. IOD is a necessary part when it comes to societies going under redevelopment. Let’s understand the term in depth.

What is meaning of IOD in redevelopment

IOD or Intimation of Disapproval is permission dispersed by the Municipal Corporation to the builder to process the redevelopment of an old building. It is issued under the Mumbai Municipal Corporation Act 1888. In IOD, “Development” is defined as the demolition of any existing building, structure or erection of such a building under Section 2(7) of the Maharashtra Regional Town Planning Act 1966. 

An important thing to note is IOD alone doesn’t allow the developer to bring down the building.  Just as Fedrick mentioned in his answer, a Commencement Certificate (CC) is required. However, there is a procedure for that too.

First, the redevelopment plan is put in front of the Building Proposal Department of BMC. Next, an IOD is given where the developer is asked to follow and clear a certain set of terms and conditions. Once the clearances are made, the developer can receive a Commencement Certificate (CC). Post this, the takedown can legally take place.

I hope you now understand the IOD meaning in construction.

As a real estate developer, I am aware of this term. It is important to know IOD meaning as this is what makes your construction a legal structure complying with the necessary government regulations. IOD stands for Intimation of Disapproval. You will find here more info regarding IOD in construction.

What is IOD full form in real estate?

Intimation of Disapproval or IOD is a crucial authorization that the local officials have granted to the constructor. The Building Proposal Department of the BMC issues an IOD after receiving the company's construction projects. And according to the IOD's requirements, the builder is required to meet a number of requirements and acquire a number of approvals. It includes clearance from environmental agencies, tree officials, fire officers, etc. The builder has the right to seek a Commencement Certificate when all these approvals have been acquired (CC). You might have now understood what is IOD in real estate.

What is the importance of IOD in redevelopment?

The pricing benefit is still an important attraction for investors and home consumers. It is especially for those who are not looking for fast possession, despite the risk involved in purchasing a redeveloped home. But, investors must confirm that the property has a Commencement Certificate (CC) and Indication of Disapproval before making a purchase (IOD). 

The IOD comprises guidelines that must be followed by a builder in order to lawfully redevelop the structure. It is important to determine the contractor's reliability before choosing any property. This involves looking into his history of behaviour, his adherence to the law, and the scope of his professional experience.

What if a property does not have IOD?

• The property could not have been approved for housing loan permissions by lenders and financial agencies.

• It could possibly postpone the entire project.

• In the worst-case scenario, the development may be terminated if the builder is unable to collect sufficient cash.

I hope you understood what is IOD in construction.