A building moratorium is a forced stoppage of any new development/construction and is usually authorized by the local Government or authorities.
A building moratorium helps in stopping the construction of any project. They are implemented by local Governments in towns, cities, and also legal courts. Moratoriums may hold for a specific duration or a short-term tenure, or an indefinite period of time. Moratoriums are imposed by authorities whenever any construction is deemed detrimental to common interests. This may be the result of any violations of laws, or a result of legal proceedings initiated by citizens. It may also happen due to any breach of contract.
Moratoriums are sometimes imposed on new real estate projects or constructions due to varying reasons. These include violating rules, safety issues, environmental concerns, finances of contractors, public issues, violating building codes, and more. The Government authority or the Court of Law will determine the implementation of the moratorium and specific requirements for lifting the same. This makes them applicable to the mainstream real estate sector.
