• Registration of flat before completion certificate

I have made an agreement to sale-purchase for under construction flat in Bhubaneswar Odisha. Date of possession was in October 2016. I have made all the payments except an amount of 1.5 lakh which is to be disbursed by SBI after registration of flat. Builder has given notice for taking possession in Dec2016 but upon enquiry it was revealed that completion certificate/occupancy certificate is not available. About 20 flat owners have made registration and took possession without completion certificate. My Queries:
1) Whether it is legal in Odisha / Bhubaneswar to registration of sale deed before completion certificate? What can be dangers if I make registration and take over possession before completion certificate?

2) Builder is also saying that we have pay maintenance charges @ Rs 3000 /month from January 2017 onwards irrespective of whether we take possession of our flat at any time. Is it legal?

3) Can I make registration of my flat incorporating a clause in Sale Deed that Builder shall give completion certificate within a specified period of time may be 1 year?

4) Is there any remedy for flat purchasers in RERA regarding not providing the completion certificate within a specified period of time.

5) I want to take possession of flat as early as possible as I am not able to take income tax benefit of interest and also paying rent and Loan EMI. Please advise ?

6) Kindly suggest a property lawyer in Bhuabneswar who can guide me in preparing suitable sale deed and assist me legally during registration of my flat.

Best Regards
Kundan Kumar
Mobile: [deleted]
Asked 8 years ago in Property Law
Religion: Hindu

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4 Answers

sale deed can be registered but builder cannot deliver possession of flat with obtaining OC/ completion certificate

2) builder can collect maintenance only after OC is issued and possession delivered to flat owners

3) you can incorporate clause that builder shall obtain completion certificate within one year

4)builder has to regsiter under RERA as OC has not been issued till date

5) builder can be penalised under RERA for failure to obtain OC

6) without OC builder cannot deliver possession

7) search in kaanoon.com website for lawyers in Bhubaneshwar

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1. Completion certificate is a formality and without this there is no restraint in doing registration.

2. If the building is fit for possession and ready for delivery then you are liable for maintence charge even if you not take possession of the flat or has not done registration.

3.Yes, you can include such clause in the sale deed.

4.RERA is not applicable for oldprojects.

5.If the sale price is paid there is no restraint in taking possession of the flat.

6.check online

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

1. Once the project is completed, it is important for the builder to obtain an Occupancy Certificate also known as Completion Certificate. This certifies that the building has complied with the approved plans.

“The OC from the planning authority is essential for any construction as per the provision of law. A buyer can move into his/her new apartment only once the OC has been received, OC is not required for registration of the property during purchase. Because of this buyers tend to ignore or overlook the OC. A buyer will face problems obtaining Khata or any other related approvals without an OC.

2. You are not obliged to pay the maintenance charges if you have not been handed over possession.

You can repudiate the claim by builder in this regard which is illegal.

3. What if he does not produces the said certificate even after lapse of that time, you have to run behind him or to the court.

4. Section 3 of the Act says: “No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act.

Provided that projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act.”

5. It is your choice, if that is the case you should not asked any advice on this.

6. You may have to look for one yourself

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Should I wait until my builder registers himself under RERA and then register my flat? What benefits I could get in this case?

But ongoing projects are a grey area in some states. It’s crucial for a buyer to cross-check rules in the state concerned before investing as many states have kept the ongoing projects out of the ambit of the Act.

“If an ongoing project falls under RERA then it’s a safe and secure investment option. In states where ongoing projects are excluded from the Act, it’s better to invest in new projects which would be registered under RERA.

projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act.”

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

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