• Regarding OC and CC

1. My builder is ready to give me cc for the flat but not the oc as he is saying its not necessary. Kindly suggest me if i don't have oc for my flat what problems i may need to face in future?
2. Only cc is enough for resale?
3. Explain me clearly about what are all the legal documents of flat i need to go through before going for the sale agreement?
4. Explain me about akarma sakarma?
Asked 4 years ago in Property Law
Religion: Hindu

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11 Answers

1. No you need to have both OC and CC, only CC is not enough for resale and not having the same might reduce the value of the flat.

2. You need to see whether the construction has been made as per the approved plan or not. Also, if you get OC and CC then there is no need to worry.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

In Chanda C. Kadam v. Addl. Collector & Competent Authority, (2013) 16 SCC 371 the Supreme Court has held that Occupancy certificate is necessary to prove possession over the property therefore OC is  an essential document.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

you must demand to produce OC because it is necessary at the time of resale.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

Hello Good morning,

You must demand both the OC and CC . You have to prove your occupancy at the time of selling the flat .

Hope this helps.

Regards.

Swarupananda Neogi
Advocate, Kolkata
2941 Answers
6 Consultations

4.7 on 5.0

OC is mandatory

2) if building has no OC it would imply building had not been constructed as per sanctioned plans

3) unless Occupancy certificate is given by Muncipal corporation you cannot occupy the flats . it is certificate that building has been completed as per sanctioned plan

Ajay Sethi
Advocate, Mumbai
87897 Answers
6207 Consultations

5.0 on 5.0

The occupation certificate will support that you are in possession of the property but cc will show that you have no dues. Normally nothing is required except the registration document if there is no condition in this regard in your sale deed but the buyer will make sure that both are in place.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Hi, OC of the Flat is very much required and if there is any deviation in the Building then the Builder will not get the OC to the Apartment.

Pradeep Bharathipura
Advocate, Bangalore
5394 Answers
310 Consultations

4.5 on 5.0

1. OC is essential for two things that builders has complied with all statutory laws and secondly to show actual possession, as after OC only you can occupy the flat, so demand OC from the builder you can face problem as the the building may be termed as illegal, penalty, resale value and procedure, you have to get it regularised.

2.NO

3. OC, CC , Title of the property, Share Certificate From Society, any encumbrance or mortgage on property, approval of plans and layouts and statutory permission and check if there is any dispute or civil suit.

4. Akrama Sakrama is a scheme introduced by the Karnataka State Government to regularize the unauthorized buildings and layouts scheme. It is an effort to streamline the rampant illegal constructions in the state. The scheme enables the owners of plots and flats in Bangalore to regularize their buildings by paying a penalty.

But kindly take care the scheme is stayed by supreme court and is not in action till further decision order of the Hon'ble Supreme Court.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. CC is completion certificate and OC occupying certificate.

The OC is issued only once the building has been completed in all respects and can be occupied. ... So, the main difference between Completion certificate & Occupancy Certificate is that CC shows that the building construction is done as per the plan which was approved by the concerned authorities.

2. OC means Occupancy Certificate, and it is compulsory to occupy a flat, you can get a loan without OC but after checking all other relevant document and property status.

Completion Certificate might be given by the Builder's architect which we generally submit to Bank for disbursements.

The OC is much more important as it is given by the local corporation BMC to notify that the property is ready to move now. OC is also required to signify that the construction has been completed and then the actual EMI starts from the bank.

3. Here is the list of documents required:

Absolute sale deed in present seller's name.

Khata certificate & extract from BBMP.

Latest tax paid receipt.

If any loan outstanding on the property, latest statement from bank.

Encumbrance Certificate from date of purchase till date.

4. There is no such scheme called akrama sakrama implemented by the government yet.

This scheme is proposed to introduce for regularisation of certain defects in the properties and the deviations in the constructions and certain other issues especially converting the revenue sites to regular sites etc.

T Kalaiselvan
Advocate, Vellore
78050 Answers
1543 Consultations

5.0 on 5.0

Dear Clietn,

Certificate of Occupancy is a document which is issued at the end of the construction by a local government agency or planning authority. The document is a proof of the building's compliance with applicable building codes and other laws

CC is issued on completion of project, than authority verifies whether project is develop acc. to plan and by laws, than only OC is issued by authority after survey.

So OC is necessary,

2. Only cc is enough for resale? -- You can offer sale of property, but bank will ask for OC if purchased via loan.

3. Explain me clearly about what are all the legal documents of flat i need to go through before going for the sale agreement? --- complete chain of documents. OO, CC, RERA approval.

4. Explain me about akarma sakarma? ---- Akrama Sakrama is a scheme introduced by the Karnataka State Government to regularize the unauthorized buildings and layouts scheme.The scheme enables the owners of plots and flats in Bangalore to regularize their buildings by paying a penalty.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

DEAR SIR,

I will try to justify myself by answering as follows:

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PURCHASE APARTMENT WITHOUT O.C

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Dear Sir,

You may purchase it, because of following reasons, there will be no risk. Believe me.

According to reliable sources, about 10,000 residential buildings in the city, after the Karnataka government introduced the Transfer of Development Rights (TDR) in 2005, do not have OCs. Among these, 50 per cent are apartments. Another alarming fact is that only 97 high-rise buildings have obtained OCs between 2009 and 2014. As per this statistic, hundreds of buildings in the city are being occupied without being issued an OC. However, what is startling is that most of this is done with the knowledge of the BBMP which collects property tax from such property owners inspite of them not possessing an OC. This amounts to a direct violation of Section 5.7 of the Bangalore Municipal Building Bye-law of 2003.

Living in a flat without occupancy certificate? You may lose power

BENGALURU: Rajini Chengappa, 58, and husband Vivek, 65, bought a flat in Kodigehalli, off Hebbal, in 2012. They moved into the sixth-floor flat a year later.

The builder, Vivek says, had promised them an occupancy certificate (OC), but it has remained a promise. The Chengappas are not alone in their plight. Thousands of homeowners are facing a similar quandary. Nearly 10,000 buildings in Bengaluru, including 50% of apartments built after the Karnataka government introduced transfer of development rights (TDR) in the city in 2005, do not have OCs, say official sources.

In many cases, though the building plans are approved, OCs are denied due to other violations. Obtaining an OC is a requirement under the Karnataka Apartment Ownership Act, 1972. The law says one cannot legally move into a building unless the developer gets an occupancy certificate from the BBMP or BDA. The corporation can ask apartment owners to leave such illegally occupied flats or impose heavy penalties.

Replying to a question at the recent Belagavi assembly session, chief minister Siddaramaiah had said only 97 highrises in Bengaluru have obtained OCs between 2009 and 2014, while promising stern action against builders violating construction norms.

Energy minister DK Shiva Kumar echoed similar views and directed officials to get tough with apartmnt builders, by disconnecting power.

But it's not as easy as it seems, considering the quantum of violations, nexus between civic officials and builders and a lack of stringent laws. Many errant builders and developers have, over the years, gone scot-free, say those familiar with the working of the sector.

There are several examples of builders disappearing without giving OCs and legal water connections to housing complexes. Apprehensive of losing their homes, buyers who've invested hard-earned money move into their flats and make do with water from pumps and water tankers.

BOOM FUELLED GRAFT

So why are such illegal buildings mushrooming in Bengaluru? Urban expert V Ravichander attributes it to a breakdown of the system and lack of transparency. "There was a good system in place a decade ago. Following a real estate boom, unscrupulous builders began construction without approved plans, in an effort to increase profits. This not only broke down the system, but also fuelled corruption."

The bigger problem, says RTI activist BM Shivakumar, is that in the absence of well laid-down regulations, a person can get into the real estate business and start construction of a project without approvals or environmental clearances. "Why blame private builders? Many BDA flats owners have not got OCs after due to failure to obtain environmental clearance,'' he alleged. Some experts and activists, however, expect such malpractices will be curtailed after the Real Estate (Regulation and Development) Bill 2013, is implemented. They believe it will rein in the strong builder lobby, even if it cannot control it completely.

Ravichander favours a retrospective and comprehensive policy to regularize buildings without OCs.

Architect G Ramesh says occupants must be allowed to approach the BBMP and BDA and apply for OCs after paying a certain compensation. The corporation must facilitate the process, he added.

ISSUE NEEDS A RELOOK

This needs proper and scientific analysis. Members of the Association get occupancy certificates, as required by the Act. There are many outside the purview of the Association and perhaps many who haven't got the required certificate. The classification of highrise itself needs a complete relook. There are multiple agencies involved in sanctioning OCs, and perhaps the figure quoted is of a particular authority. Buildings that have OCs are many more, since it isn't possible to get various agency clearances and connections without OCs.

THE KARNATAKA MUNICIPAL CORPORATIONS ACT, 1976.

310. Completion certificate and permission to occupy or use.- (1) Every person shall, within one month after the completion of the erection of a building or the execution of any such work, deliver or send or cause to be delivered or sent to the Commissioner at his office notice in writing of such completion, accompanied by a certificate in the form prescribed in the byelaws signed and subscribed in the manner prescribed and shall give to the Commissioner all necessary facilities for the inspection of such buildings or of such work and shall apply for permission to occupy the building. 1 [(1A) Notwithstanding anything contained in sub-section (1), where permission is granted to any person for erection of a building having more 512 Municipal Corporations 1977: KAR. ACT 14] than one floor, such person shall, within one month after completion of execution of any of the floors of such building, deliver or send or cause to be delivered or sent to the Commissioner at his office, a notice in writing of such completion accompanied by a certificate in the form prescribed in the bye-laws, signed and subscribed in the manner prescribed and shall give to the Commissioner all necessary facilities for inspection of such floor of the building and may apply for permission to occupy such floor of the building.]1 1. Inserted by Act 32 of 1986 w.e.f. 17.6.1986. (2) No person shall occupy or permit to be occupied any such building, 1 [or part of the building]1 or use or permit to be used the building or part thereof affected by any work, until,- (a) permission has been received from the Commissioner in this behalf; or (b) the Commissioner has failed for 2 [thirty]2 days after receipt of the notice of completion to intimate his refusal of the said permission. 1. Inserted by Act 32 of 1986 w.e.f. 17.6.1986. 2. Substituted by Act 32 of 1986 w.e.f. 17.6.1986

A completion certification is an important and mandatory legal document attesting to the fact that a new building has been constructed and completed according to all the safety norms and regulations of the Buildings Act. A mandatory no-objection certificate issued by the local development and municipal authorities, the completion certificate of any building in Karnataka proves that the building has been approved by the Bangalore Development Authority, as per the stipulations in the Karnataka Town and Planning Act (1961) and the Bangalore Development Authority Act (1976).

Contents of a Completion Certificate

The certificate should contain all the required details, including the identification of the land, the location, if the building has met all the standards of safety and regulation, the distance from the road, distance from surrounding buildings, height and other criteria set by the Municipal authorities, along with the building plan. In short, the completion certificate guarantees that the building has not violated any rule in that locality. The Apartment Ownership Acts in various states in India make it compulsory for an owner or builder to possess a completion certificate, in order to avail of basic amenities like water and electricity.

In case of a builder or a developer, it is mandatory that they give a copy of the completion certificate to a person purchasing the house.

How is a completion certificate awarded?

Once the project is completed, the local authority inspects the premise on the basis of the building plan and awards the completion certificate, provided it is satisfied. The builder then applies to the departments yet again along with a copy of the completion certificate to get water, electricity connection and other basic amenities for the project.

Provisional and final completion certificates

A provisional or temporary completion is usually awarded to a builder if they want to hand over an apartment to residents but still have pending work to complete, such as finishing construction of amenities like the club house or painting. The provisional certificate expires after six months and should be followed by the builder applying for the final completion certificate.

Why is it important to have a final completion certificate?

A final completion certificate is awarded after the construction of a house is complete or if a group housing or apartment society is formed. It is a mandatory legal testimony to the fact that the builder has not violated any building rules and standards such as the floor area ratio limit, structural design, distance from road, quality of construction, distance from surrounding buildings, height of the building, number of floors and other criteria, along with an attested and approved building plan. This certificate is needed for an apartment or building to receive basic facilities such as electricity and water. In fact, the water rate is converted from non-domestic to domestic only after receiving a completion certificate. A buyer should not get possession of a house or building without a completion certificate, which also sets into motion other compulsories such as the payment of property tax and housing loans.

What if a completion certificate is not awarded?

If the developer has not been awarded a certificate of completion, buyers can either approach the local municipal authorities to award the completion certificate or can form a resident’s welfare association to speed up the process. In case new properties operate without completion certificates, residents are threatened to be evicted and the city engineering department will penalise the properties for not paying property tax.

Many people are unaware that a completion certificate is crucial to procure, before finishing payment of a final instalment in terms of purchasing a property. Builders tend to persuade hapless people into buying a property without possessing the appropriate legal documents. Hence, it is important to press for the builder to acquire a completion certificate, before releasing the final payment to the same. A completion certificate is also required to ensure that safety norms such as codes in the case of fires, accidents and other criteria are met.

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What is a khata?

A Khata is essentially a revenue document, detailing the assessment of a property, recording details about the property such as size, location, built up area and so on for the purpose of payment of property tax.

It is also a kind of identification of the person who is primarily liable for payment of property tax. It is one of the required documents in case you require a building licence, trade licence or loan from banks or any other financial institutions.

What is the difference between an A Khata and B Khata?

What any property buyer should know while buying property in Bangalore is that it should have A khata.

An A khata means you are buying a property that is legal, and it will allow you to construct on it and obtain a trade or building license. Here are some further details on the difference between A Khata and B Khata.

Then how did the term B Khata come into being?

Well in 2007 when BBMP came into being 2 things were apparent:

1) There were many properties that fell under its jurisdiction that were illegal constructions

2) There was a need for an uniform taxation policy

Regarding the former the BBMP found that these illegal constructions were enjoying civic amenities without paying taxes. While regarding the latter, there was a need to consolidate the tax collection process to make it simpler which was earlier collected by 3 different bodies.

Now, the newly formed BBMP had the power to levy taxes on the aforementioned illegal constructions. The taxes collected from these properties were recorded in a register known in common parlance as B register and the khata issued therein was known as a B khata.

Thus anyone having a B khatha essentially is a non BBMP approved construction. Hence it is not advisable to buy such properties.

However, it is only fair to mention that any B khata property can be converted into an A khata property.

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Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

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