• Registration of property without OC

I have invested in a Flat in Bangalore. The project has been delayed tremendously and out of the 6 blocks, 1 block has been finished.I have a flat in that block. There are clauses in the agreement where builder has to pay the buyer Rs5 psf if there is a delay of over 6 months BUT like every other builder, they are well covered to not pay anything with the various clauses that they have. 

Builder is asking me to pay the handover amounts and take possession of the property and register it. They are threatening to charge me 8rs psf as holding charges  if i dont register in a weeks time (the agreeement mentions this charge as 5rs). I do not wish to register the properly now due to financial reasons and my attempts to sell the flat has not been working out for the longest time. 

1. Is there any legal argument that prevents them from charging me holding fees? 
2. Am i allowed to accept handover even if they dont have an OC in hand. 
3. Can i choose to tell the builder that i will pay him for handover and take possession only when he gets the OC? Is there any such legality by which i can inform the builder that i am not liable to take handover and take possession unless they have an OC in hand? 
4. Is there anything like holding fee in the laws of the karnataka stage and is it legal?
5. Am i liable to pay the holding fee if i dont register for the lack of OC on their part? 
6. And most importantly, Are there any legal preceedents for the above that i can use in my arguments?
Asked 1 year ago in Property Law from United Arab Emirates
Religion: Other
1) builder can charge you holding charges as per your agreement 

2) OC is certificate issued that building has been competed as per sanctioned plans . If OC not issued builder cannot force you to take possession 


3) you can insist that builder obtain OC then you will accept possession of flat 

4) holding fees would be legal as per clauses in your agreement 

5) as per newspapers reports in Karnataka more than 80 per cent of flats don't have OC 

6) better strategy would be to take possession 
Of flat then move consumer forum against builder to direct him to obtain OC and pay for delay in dilvery of possession 
Ajay Sethi
Advocate, Mumbai
23392 Answers
1229 Consultations
5.0 on 5.0
Once the flat is ready, the builder intimates you to come and register it in your name and take possession, if you fail to comply then the builder can charge holding charges from you, the rate at which he can charge will be mentioned in the agreement, you are liable to pay only that amount.
To accept handover OC is not essential, after accepting handover O.C can be provided,
Take handover of the flat subject to production of O.C, do not postpone the taking over, pay the difference amounts even if he is demanding excess than what is stipulated in the agreement, you can file a consumer complaint after taking possession in order to claim delay compensation from builder, they have to pay, and for refund of other charges wrongly collected from you together with interest as well as litigation costs for the same.
Kiran N. Murthy
Advocate, Bangalore
766 Answers
52 Consultations
5.0 on 5.0
1. Builder can't force you to register the property in a given time. However you can't hold it for long. The balance is to be maintained. If there is great urgency and force to register the property or holding charge is imposed you can file the case in consumer forum.
2. Yes
3. Yes, you can say so.
4. Yes it's legal.
5. No
6. File case in consumer forum.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
Hi, There is no holding fee as such as they claimed by the Builder.

2. As they have not handed over the possession of the property in time you are entitled for damages for not deliver the possession in time.

3. It is appropriate for you to approach consumer court against builder for deficiency of service.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
1. Is there any legal argument that prevents them from charging me holding fees? 
You have to go through the contents of the sale agreement which would explain the issues in a better way for this question.

2. Am i allowed to accept handover even if they dont have an OC in hand. 
If OC is not given then the flat is unfit for occupation, you should insist on it and refuse to occupy or register the flat without a competent authority issuing a valid OC.

3. Can i choose to tell the builder that i will pay him for handover and take possession only when he gets the OC? Is there any such legality by which i can inform the builder that i am not liable to take handover and take possession unless they have an OC in hand? 
Basically OC is the valid certificate that will lead you to safety for occupying and enjoying the completed flat, without which you cannot claim any damages in the future and the authority, if decides to demolish due to deviation, you will be suffering a loss which the builder will not compensate at that stage, he will simply wash away his responsibilities.

4. Is there anything like holding fee in the laws of the karnataka stage and is it legal?
What do you mean by holding fees?  Not understood.

5. Am i liable to pay the holding fee if i dont register for the lack of OC on their part? 
OC is important for occupying the flat.

6. And most importantly, Are there any legal precedents for the above that i can use in my arguments?
You may have to consult a local lawyer with the a copy of the sale agreement for proper perusal and his opinion on all such legal questions in person. 
T Kalaiselvan
Advocate, Vellore
14170 Answers
128 Consultations
5.0 on 5.0
1. The holding charge is in the nature of a penalty. As such, it cannot be levied beyond what is incorporated in the agreement.

2. You cannot refuse to register the property except if the agreement has been cancelled by you. The cancellation is to be done only within the periphery of the charter of rights created by the agreement. An agreement brings into existence corresponding rights and duties. If there is default in the performance of duty by either party it entitles the other to cancel the agreement. Unless the contravention of the agreement has taken place there is no scope for unilateral cancellation.

3. Taking possession of a building which does not have OC is illegal. You can issue a lawyer's notice to the builder to refuse the possession on this ground.

4. Incorporating holding fee in the agreement is legal.

5. You incur no liability to pay the holding fee if you cancel the agreement on account of OC not being obtained.

Ashish Davessar
Advocate, Jaipur
18264 Answers
450 Consultations
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