• Occupancy Certificate (OC) is for flat or entire building

I have recently seen a flat for purchase in Kagdasspura area, Bangalore. Building is still under construction.
Builder has shown BBMP approval and A khata certificate for land. BBMP approval for builder is of 4 floors however builder is developing 2 penthouse sort of flats on the 5th floor for his own usage. Flat which i have seen for purchase is at 2nd floor and is as per BBMP approved plan.
My query is,
1. Whether OC is for issued for entire building or for each flat?
2. If in case of illegal building but valid flat (as told above), OC can be provided by builder to buyer of flat?
3. Whether to for buying of such property?


Thanks,
Amit
Asked 1 year ago in Property Law from Bengaluru, Karnataka
Religion: Hindu
Hello,
1) Occupancy certificate is issued for the entire building and as such this will make all flats to have valid occupancy certificate.

2) If building is illegal there can't be a valid flat in it.

3) As the building has BBMP approval you can proceed to buy. The pent house is illegal and can be ordered to be demolished by BBMP. THIS doesn't render the whole building illegal.
S J Mathew
Advocate, Mumbai
1949 Answers
65 Consultations
5.0 on 5.0
1. The OC from the authority certifies that the building has complied with the approved plans.  A buyer can move into his/her new apartment only once the OC has been received. OC is issued for an entire building, or a part thereof, and is not given to individual flats.

2. OC is issued by the corporation and not the builder.

3. Carry out due diligence through your lawyer before purchasing the property.
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
5.0 on 5.0
1. The OC will be for individual flats,

2. BBMP will not issue completion certificate for the entire building,

3. The authority is supposed to demolish the deviation made from the approved plan and in that case your flat may get affected but actually the builder obtains approval for the deviation by paying additional fees,

4. To be extremely safe, this property constructed by deviating from the approved plan should be avoided.
Krishna Kishore Ganguly
Advocate, Kolkata
12042 Answers
227 Consultations
5.0 on 5.0
1) if building has been completed as per sanctioned plans occupation certificate would be issued for entire building 

2) occupation certificate is issued by municipal corporation 

3) fifth and sixth floor would be illegal if not sanctioned by municipal corporation 

4) file RTI application to find out whether occupation certificate has been issued or not 
Ajay Sethi
Advocate, Mumbai
23107 Answers
1213 Consultations
5.0 on 5.0
1. If the bank does not carry out due diligence it does not mean that you cannot carry it. At the time of buying a property the buyer must carry out his own due diligence through his lawyer regardless of whether the bank has conducted it or not. 

2. You alone have to decide the lucrativeness or lack of it of the property on the basis of the materials before you and in view of the attendant factors.
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
5.0 on 5.0
1) i have advised you to file RTI application to find out whether OC has been issued  by PMC or not 

2)housing finance companies  do check whether title is clear and marketable before sanctioning of loans 


3) but you also have to do due diligence on your own . always go in for reputed builders 
Ajay Sethi
Advocate, Mumbai
23107 Answers
1213 Consultations
5.0 on 5.0
OC is issued for the entire building which is issued by the Corporation after it is confirmed that the norms have been followed by the Builder in constructing the flat. The builder is not an authority to issue any OC. 

Even though the house loan financing banks do find out if the title is clear but it is highly advisable to carry out your due dilligence as well. File an RTI to get the information regarding the building documents
Shaveta Chaudhary (Sanghi)
Advocate, Chandigarh
821 Answers
60 Consultations
5.0 on 5.0
1. Banks will certainly conduct due diligence to be confirmed that their loan on your property can be recovered by selling the flat, should your account become NPA,

2. However, Bank's conducting search will not absolve you for buying a questionable property,

3. You shall have to take your call about whether you will buy the flat or not after conducting risk benifit analysis,

4. Simply speaking, questionable property should not be bought. 
Krishna Kishore Ganguly
Advocate, Kolkata
12042 Answers
227 Consultations
5.0 on 5.0
1. OC is issued for an entire building, or a part thereof, and is not given to individual flats.
2. The OC when issued by the BDA/BBMP will be for the building and the flats which are covered under approved BBMP Plan.
3. You can buy a flat in 2nd floor of the building, which is as per BBMP approved plan. However after going through the original documents only we can suggest a client to go ahead with the sale or not.
4. Better to take legal opinion from an independent Advocate, before committing to buy.
Shashidhar S. Sastry
Advocate, Bangalore
1232 Answers
59 Consultations
5.0 on 5.0

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