• Buy apartment or not?

Recently, I have shortlisted an apartment in Bangalore for purchase. Its a RERA approved project. The building is almost 85% complete. Builder says they have applied for OC and will receive it couple of months.
I want to buy this in self finance mode without bank loan. He is asking me to pay 1 lac as advance amount to book the flat. Then get the property documents verified by a lawyer in 2-3 weeks time and if I agree to buy then to do the sale agreement with 20% payment. If I decide not to buy then he is ok to return the cheque. After that he says to wait for 1-2 months to get the registration done and at that time I shoud pay the remaining 80%. 
I am insisting on OC since its important to me. He is willing to put an OC clause in the agreement. Also, for registration he says getting OC is not mandatory. He can get registration done by showing the OC application form. 

1. I want to know if what he is saying is a correct and per norms? How can I ensure that he gives the OC on time ? 

2. In the plan there is a major road called 'Peripheral ring road' planned to pass right next to the apartment in future. How can I ensure that the road wont interfere with the property in future ? Will the building plan approval suffice ?
Asked 4 years ago in Property Law
Religion: Hindu

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34 Answers

1. IF the Layout Plan of the Plot of Land is sanctioned by the Collector office AND IF the Building plans are sanctioned by the Municipal or Town Planning authorities, THEN you can execute the Sale Deed, more so since the OC component is not linked in anyway with the Registration of Agreement.

2. OC is very much required, WHEN building is completed and just before actual possession.  It is a prosecutable offence to occupy any building without OC.

3. IF the Layout Plan of the Plot of Land is sanctioned by the Collector office, THEN there won't be any objections regarding the Road or its expansion or other amenities.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

1. Occupancy Certificate evidences the completion of the building as per the approved plan and compliance of local laws.

- If the builder is unable to obtain the occupancy certificate, it means that the builder has violated building law or deviated from Construction Plan, and further it is illegal to occupy in a building or apartment that doesn’t have an occupancy certificate.

- Further, It is illegal to occupy in a building or apartment that doesn’t have an occupancy certificate. Buildings without OCs are not given a water connection and are charged a higher property tax.

- Further, as per RERA,, A builder cannot give possession to buyers without OC

- Hence, in the absence of an Occupancy Letter, you should not deal with the builder.

2. You can enquire the same from the Municipal corporation . However if he is having building approval with the details of common area etc then it is suffice. 

Mohammed Shahzad
Advocate, Delhi
13230 Answers
198 Consultations

5.0 on 5.0

OC is a tricky thing. you can book the same now by paying 10 percent booking amount and rest you can pay on registration after OC. if he agrees then you can go ahead

Prashant Nayak
Advocate, Mumbai
31954 Answers
179 Consultations

4.1 on 5.0

Wait for OC to be issued then buy the flat 

 

2) there are no buyers for any flat and you would get flat at same rate or lower rate after couple of months 

 

3) only if builder is reputed with proven track record should you go ahead to buy flat without OC 

 

4) building plans approval should suffice 

Ajay Sethi
Advocate, Mumbai
94734 Answers
7539 Consultations

5.0 on 5.0

You are making full payment without bank loan. Best deal for builder. You are in a situation to force your condition on builder. Tell him straight, flat is short listed. Issue allotment letter without any advance. Full payment shall be made at the time of registration of sale deed. And you will register sale deed only when OC/CC will issue.

Whatever builder is assuring is fake and routine business trick to lock deal.

OC is mandatory, without it delivery of possession is illegal.

If road is showing in sanctioned plan than cannot be interfered with.  Execute agreement to sell without any payment and put clause of road infinity.

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

Considered the circumstances, its better to file a Consumer Complaint as the builder has not honored in terms of agreement. We need to take a stand that such unilateral terms is an unfair trade practice. You can get your refund.

Jamal Sait
Advocate, Bangalore
168 Answers
2 Consultations

4.9 on 5.0

Dear sir,

Occupancy certificate is must without which he cannot sell you the flat after completion of project they get oc is must please verify and have a check on it as well have a clause of OC in agreement ; 

In future if you plan to cancel the builder as per Rera will refund you the amount after deducting booking payment and please before signing please go through each and every clause of the agreement to sale and sign ; 

Yes you can have a check from plan approval where the road suffice I guess it wont effect to the project pls check plan approval whether there is any road pass by in your project!!

Ayesha Sultana
Advocate, Bangalore
280 Answers
1 Consultation

Not rated

You better visit Bangalore Municipal Corporation office and inquiry about the Ring Road handling Division officer regarding this project is going to get held or not or check Municipal Corporation GR for Ring Road if any available.

Ganesh Kadam
Advocate, Pune
12930 Answers
255 Consultations

4.9 on 5.0

1. In sale agreement you can have a clause that builder shall provide OC in period of 2 or 3 months that he is saying and after that the flat shakl be registered to you on case he fails to get OC the complete amount has to be refunded back along interest. 

2. Yes the building plan approval protects your rights.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Dear Sir,

Wait for a couple of months and let him obtain the OC. 

If you pay now, there is no way he is returning the entire amount. You'll have to go to courts to get you money back.

Yes. Building Plan approval is suffice.

Best wishes.  

Agam Sharma
Advocate, New Delhi
617 Answers
6 Consultations

5.0 on 5.0

1. No he is not correct as per norms...if any case you decided to cancel than he will not return the money.

2. Yes

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

1. No body pays Rs. 1 lakh to get photocopies of the property documents. What will you do if he refuses to retun you the said amount if you do not want to buy the said property? First of all  conduct registry search with the propery documents and then if you agree to buy the property, pay the booking amount and enter in to sale agreement with him. In some States registration is allowed without OC and in some States, it is mandatory to have OC before registration. Verify from your local registration office whether they will allow registration without Oc and with the application of OC only.

 

2. You shall have to enquire from the local BMC about the said Peripheral Road surrounding your complex. When the BMC has accorded approval of the plan which shows the Peripheral Road passing  by touching the building wherein you are planning to buy the flat, it is unlikely that the said road will interfere in to your flat which has already been built and registered.

Krishna Kishore Ganguly
Advocate, Kolkata
27219 Answers
726 Consultations

5.0 on 5.0

1. The builder/promoter/developer may give lots of tall promises in this regard.

You should verify the credentials of the builder before hand and trust him only if you get satisfactory opinion about him. 

As a home buyer, you need to be very careful on what you should do at very stage of your purchase.
Buyers have right to take legal action agaisnt the builder if he fails to provide the OC, but why do you have to be pushed to that extent while you are investing huge amount to have the property free of legal hassle.

2. You are getting confused by certain legal terminologies or imagining future issues in this regard.

Hence it is advised that you obtain a proper legal opinion from a local lawyer  and proceed only if recommended.

Your prudence with the additional knowledge gained from forums like this may not come to your rescue when you may face serious legal issues after buying the property without obtaining  a legal opinion from an experienced lawyer. 

 

T Kalaiselvan
Advocate, Vellore
84935 Answers
2197 Consultations

5.0 on 5.0

You need to send a notice to the Builder to apply and handover occupancy certificate within one month from the date of issue of your notice, if the Builder does not respond, file a complaint in the consumer forum. Builder cannot escape the liability for securing the Occupancy certificate.

 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Dear Sir,

You are suggested to have some faith and also enter each and every clause of your favour in the agreement of sale. If that agreement is violated by the builder, he will face the consequences. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

1. Yes builder is right OC is not mandatory for registration of property but OC is mandatory before possession of flat. 

2. You can get the copy of approved plan from builder so that you can claim compensation if road interfere with project area. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Copy of it may be available in municipal office. Obtain certified copy of it. 

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

Has FIR been filed about loss of original documents 

 

2) has public notice been issued 

 

3) don’t purchase property if important documents are missing 

Ajay Sethi
Advocate, Mumbai
94734 Answers
7539 Consultations

5.0 on 5.0

If sale deed is not there then ask seller to give FIR raised against sale deed has been lost and in future any encumbrance responsibility shall be on seller's shoulder.

Ganesh Kadam
Advocate, Pune
12930 Answers
255 Consultations

4.9 on 5.0

It is your call whether to purchase the flat or not 

 

2) I would not advice you to buy the flat 

Ajay Sethi
Advocate, Mumbai
94734 Answers
7539 Consultations

5.0 on 5.0

Lawyer has rightly said. Property may have free from encumbrance but original sale or its certified copy along with missing report is must. 

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

Dear sir,

A original document is missing ask them to collect the non availability endorsement as records got discarded from the office from the concerned sub registrar office since its 1967 document it wont be available in records due to which they can issue non availability endorsement as records got discarded otherwise you can take it up the title from other document which is available after 1967 nothing to worry it almost 45 years no question will be raised !!

Ayesha Sultana
Advocate, Bangalore
280 Answers
1 Consultation

Not rated

- As per law, in the absence of Sale deed , other property documents having no value . 

- If the said Sale deed was missed by the original owner, then there should be a missing report from the police and also needed a publication in the news paper. 

- However , the present owner can give a notice in the news papers for the missing the original sale deed from him , after lodging a complaint with the police. 

- Further, he should apply before the registrar , where this missing sale deed was registered for getting a certified copy of the same. 

Mohammed Shahzad
Advocate, Delhi
13230 Answers
198 Consultations

5.0 on 5.0

1. See for the missing document there should be police complaint and further a lost certificate from.the police.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

See the certified copy of the missing document and further the certificate from police are required to be completely assured.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

The seller of the flat needs to provide you with all the original documents related to the flat to be sold. The original sale deed also known as the mother deed or parent deed is one of the most essential documents that need to be checked before purchasing the flat.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Check whether FIR has been lodged by seller regarding missing original documents? Whether public notice issued? It may be that equitable mortgage has been created by seller by depositing original title deeds.

If FIR is lodged, public notice issued then you can proceed with purchase of property on basis of certified copy of sale deed.

We would advice you to avoid buying such property.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Dear Sir,

The certified copy of old documents can be obtained from registrar's office through due application. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

You can buy but banks would demand A to Z sale deeds for loan etc.

 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

go for news paper publication and indemnity bond for the same. Otherwise title will be affected

Prashant Nayak
Advocate, Mumbai
31954 Answers
179 Consultations

4.1 on 5.0

If certain documents are missing then you may direct the vendor to produce the same somehow, it is not your duty to search for the missing documents, ask the vendor to furnish explanation  for not producing the missing documents or you can skip the purchase if you are not satisfied with his reply.

 

T Kalaiselvan
Advocate, Vellore
84935 Answers
2197 Consultations

5.0 on 5.0

Your lawyer is right and you may go by his opinion, if you want to be doubly sure about the genuineness of the property you would like to buy now. 

You obtain a satisfactory explanation from the vendor about the missing documents, if it is genuine then you can proceed or you can drop the plans as per your advocate's opinion.

 

T Kalaiselvan
Advocate, Vellore
84935 Answers
2197 Consultations

5.0 on 5.0

1. May be the said original Title Deed has been deposited with some Bank creating mortgage thereupon to secure a loan taken from the Bank.

 

2. What has happened with the said original deed can not be predict.

 

3. It will be prudent on your part to avoid buying such flat under such circumstances.

Krishna Kishore Ganguly
Advocate, Kolkata
27219 Answers
726 Consultations

5.0 on 5.0

It is always prudent to avoid buying flats spending life time savings where all the required documents are ot provided.

Krishna Kishore Ganguly
Advocate, Kolkata
27219 Answers
726 Consultations

5.0 on 5.0

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