Hello Experts, I am looking to buy an apartment in Bangalore. I am stuck with the issue of several apartments not having Occupancy Certificate. There are very few apartments that come with occupancy certificate. But the plans are not satisfactory to me or they are too expensive (~20% more than the ones without OC). Will you kindly be able to clarify: a. whether it is safe to go for apartments without OC now b. the after effects in case of any regularisation that may happen latter c. in case I go for apartment without OC, will there be any issue if want to sell it out Several of the builders/friends advise that 80% of apartments in bangalore are without OC and nothing will happen, except regularising them through Akrama-Sakrama scheme. Few of them ask me to just make sure that there is no floor deviation and go for such ones. The one that I like the most has floor deviation and comes ~15 lakhs less than comparable ones with OC. Kindly advice me through your expert opinion on this. Thanks and Regards. Satheesh.
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1) it is better to pay more money than buy flat without occupancy certificate
2) if flat has OC it would imply that building has been constructed as per sanctioned plans
3) merely because in Bangalore 80 per cent of flats don't have OC does not mean that purchaser should invest in such project
4) banks are reluctant to give loans for purchase of flats on resale basis wherein building does not have OC
5) don't purchase. Any flat in such projects
small builders in bangalore do not provide OC. But legally this must be obtained. However BBMP which issues this OC has been regularizing such buildings which have deviated after obtaining commencement certificate, even before the Hon'ble High Court has allowed the passing of Akrama Sakrama Scheme.
Call it a nexus with the builders, but both parties are illegally supporting each other.
Therefore the one question you must be asking yourself and then with the builder is who is going to pay the penalty to obtain the OC at a later stage. If builder agrees to bear this cost, no issues, but if this is passed on to you the owners of the flat, what would be the implications on the cost of the flat.
1. Without OC the buliding cannot be occupied. A building, of which possession is being taken without OC, can be demolished at anytime, or the owner can be evicted in accordance with the law.
2. Regularization may be allowed on the payment of penalty by the owner.
3. The banks and financial institutions are most reluctant to give loan in respect of properties which do not have OC. Furthermore, no prudent buyer will in the first place agree to purchase such property.
The general tendency in the present stage is that the people are in a hurry to occupy the constructed apartment without going behind the rules properly including obtaining the OC or possession certificate. They are ready to accept the property even if there are glaring deficiencies thinking that the builder will rectify the same at a after stage, but practically most of the builders wash away their hands once people occupy the apartment and he hands over the building to the society.
a. whether it is safe to go for apartments without OC now: LEGALLY SPEAKING, IT IS NOT ADVISABLE
b. the after effects in case of any regularisation that may happen latter : IF THE AUTHORITIES FIND GLARING DEVIATIONS IN THE CONSTRUCTION OR THE CONSTRUCTION IS NOT OF THE STANDARD AS MENTIONED IN THE CERTIFICATE, IT MAY NOT GRANT PERMISSION, RESULTING INTO RECTIFYING THE DEFECTS OR PAY HEAVY BRIBE THEN TO GET THE OC
c. in case I go for apartment without OC, will there be any issue if want to sell it out : IT DEPENDS ON THE BUYER IF THE BUYER INSISTS ON OC, YOU MAY HAVE TO PROVIDE IT.
A. First, you need to get confirmation regardin why the local authority not ready to issue the OC for particular project. Later, once you received the answer that you can analysis the same whether this property is good or not?
B. Generally, If you have a occupancy certificate towards your flat that would gives marketable title over the flat.
C. However, if you would like to purchase the oc or cc project based on your financial conditions that the following the precasutions to be taken viz.,
1. Land documents must be cleared without any legal complications.
2. Project must be approved by the Local authority ie.., BBMP, BIAAPA, BDA etc.,
3. Land should not situatel near the Lake or sensitive zone if situated clearance from the competent authority is mandatory.
4. Land history shall not belongs SC/ST community.
5. Deviation in the project should not exceed morethan 20% or 30%.
6. When the deviation percentage is very low, it can be rectified by paying penalty and get oc in future subject to future terms of the law.
D. We cannot give assurence about Akrama and Sakrama becasue of this matter before the High Court of Karnataka.
1. First find out whether the land is recorded with A Khata or not,
2. If not and if there is no OC received by the builder and also if you find that there is major deviation from the sanctioned floor plan, then do not go for such property,
3. The less amount charged for selling those flats which do not have OC is due to the risk involved in buying them,
4. it will be a gamble in purchasing such flats.
In the legal point of view occupancy certificate is must. A building, of which possession is being taken without OC, can be demolished at anytime by law .In the Akrama Sakrama Scheme Regularization may be allowed on the payment of penalty by the owner.In this situations banks are reluctant to give loans for purchase of flats
