Wait for flat being regularised then only purchase it
as on date construction is unauthorised and can demolished
15 years old flat without OC but everything else is there
Hello, I am interested in buying a flat in Hyderabad, where the owner has the Sale Deed, Linked Documents since 1963, Property Tax Receipts. The important thing to note is this is 15 years old flat, they said there was no OC provided back then. Telangana Government has this scheme for Layout & Building Regularisation (BRS /LRS), and the owner has applied for the same since the last 1-2 years. Some of the flats in the building are already regularized using BRS scheme. The owner has already taken a person mortgage loan on property from Bajaj Finance, and both banks and private finance companies are sanctioning the home loan for us on the same property. So is it safe to assume, that the flat can be bought?
Asked 6 years ago in Property Law
Religion: Hindu
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11 Answers
Yes the old property is safe to purchase if it is regularised by government no OC is required in your condition if title is perfect you can go ahead with same and can further pursue the regularisation application.
Buying a flat without occupancy certificate can be very risky as the absence of a valid OC, your building can be demolished if it is classified as an unauthorised structure.
Without OC, I WOULD NOT ADVISE YOU TO BUY THAT PROPERTY.
It is better to wait until the flat got regularized ,even though banks are providing the loan,if the application for BRS which was applied by previous owner get rejected,competent authorities may take an action .You just try to find out about the status of BRS application which was already applied.AS it is applied 2 years back,by this time it must be regularized,but it didn't happen.So,approach the competent authorities to find the reason why it is still not regularized and try to find out still how much time it will take to regularize it.Based on the result of this verification only take your decision.
OC is important. Even if it is a old building ask for OC. Why take a risk when you are investing money better consult a local property lawyer with all relevant documents.
You can do it with your own risk as there is no safety of anything if of is not obtained by builder. But many people stay in the building without oc. If you feel its worth you can continue
If possibility of regularization is not bleak, it can be purchased. Private companies only finances such properties without OC.
What is the cause of delay in issuing OC for 1 - 2 years, find out than only go for deal.
1. IF "Some of the flats in the building are already regularized using BRS scheme", THEN it means that the building itself is not illegal in the revenue records and that sooner or later this particular Flat also would be regularized.
2. Double-Check all the original documents and have it verified by a local property lawyer and based on his search-report, you can safely buy this property, BUT ONLY after taking a "indemnity bond" from the seller, for any liability & legal disputes relating to his Flat.
Dear Sir/Madam,
As per your submission here, the said property is under all laws, rules and regulations and hence you may purchase it in hassle free manner. Also ensure that the person selling the property gets rid of the loan and make the property free from all issues.
From your contents there appears to be no problem in buying this property especially if you confirm that the seller has applied for regularization of the issue with competent authorities, after obtaining legal opinion from a local lawyer you proceed as per the recommendations.
- As per the information mentioned in the present query, makes it clear that the owner has all valid documents and also having a loan on it.
- It also shows that though the OC is not there, but the same because of the no rule of same at that time, but owner has already applied for scheme.
- I would advice you to go ahead for the flat, but include such clauses in the agreement to sale and thereafter in the sale deed (like about the loan by him, way in which now it will be paid, property is free from any dispute etc.) which I would save up from any future hindrance with respect to the property in question.