• Legal issues and builder traps to look after for a first time buy

I am planning to buy a flat in bangalore. I am a first time buyer so i have lot of confusions in deciding which property to go for. Below are few queries i have in general

1) I read some old article which states only BDA and BMRDA has right to approve residential apartments with in the city and rural areas os bangalore. BBMP is only to collect taxes. But i see some properties with BBMP approval. BBMP has right to approve properties (location : sarjapur road) ?

2) Small individual apartments will have approval for G+3 only or G+4 is also allowed? I doubt builders have permission for G+3 but they are adding 1 more floor for their benefits. If that is the case and if i buy a flat 1st or 2nd floor so such apartment, will i have any issues, as that floor is approved?

3) Some small apartments builders with G+3 (or G+4), in sarjapur road says its approved by BBMP, but OC wont be issued as its a small apartment (G+3). OC is issued only for apartments which are more than G+3 or G+4? 

4) For similar G+3 or G+4 apartments in Electronic city area, builder says its under panchayat approval, so OC/CC wont be provided. As for the information i have panchayat only have right to approve site but not building plan. Does panchayat has right to approve building plan. If so can we possess the flat without OC?

5) Under BESCOM and BWSSB deposit, builders are quoting in a range of 100 to 150/sqft. Aren't these charges fixed. If not how it will be calculated? Are these 1 time charges or we need to again pay on monthly basis?

6) Car parking is being charged separately both open and closed type in 1.5L to 2.5L range. I read some articles which says builder can't charge for car parking separately as it is already included in the SuperBuiltUp area. 

7) builders also collect maintenance advance for 6 months to 1 yr even though none of the amenities(club house, gym, party hall, pool, park etc) are completed and are expected to be completed only after an year. How come builders collect charges even without providing facilities? does that maintenance include any other charges?

8) Apart from these are there any other things i should be conscious about in general before consulting a legal advisor with property documents for further verifications?
Asked 2 years ago in Property Law from Bangalore, Karnataka
Religion: Hindu
some precautions to be taken before purchase of flat 

1) only go in for reputed builder who has a decent track record 

2) check whether building plans are sanctioned or not 

3) go for projects pre approved by leading banks 

4) if building is already completed check whether builder has OC or not 

5) OC would indicate whether building has been completed as per sanctioned plans 

6) builders do collect advance maintenance for period of 6 months or year so that they don't have to run after flat purchasers for maintenance 

7) generally club house is constructed first so that purchasers are tempted to buy flat having all amenities 

8) builder cannot charge for car parking slots 
It forms part of common areas for benefit of all members 

9) don't purchase flats in project which fall under gram panchayat

10 ) as far as your other queries are concerned only local lawyer can guide you 
Ajay Sethi
Advocate, Mumbai
45474 Answers
2672 Consultations

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By consulting a property advocate all the above concerns will be addressed. So from your side identify a property, its location and finalize the price. The rest will be taken care by the advocate.
Kiran N. Murthy
Advocate, Bangalore
995 Answers
89 Consultations

5.0 on 5.0

Hi, Building plan has to be issued by either BBMP or BMRDA or any other authority and if the Building is constructed in accordance with plan then only builder will get OC other wise BBMP will not issued OC.

2. If the building is not constructed in accordance with plan then it will become violation of sanction plan and license.

3. For each and every apartment the OC will be issued there is no question of small apartment and big apartment.

4. Panchayath has no authority to issue building plan.

5. Car parking has to be valued separately i.e open car parking and closed car parking during the time of registration.

6. it is better you can contact an advocate get legal opinion from him and proceed further.
Pradeep Bharathipura
Advocate, Bangalore
4551 Answers
203 Consultations

4.5 on 5.0

1) builder cannot sell car parking slots in view of supreme court judgement that it forms part of common areas 

2) it is always advisable to buy flat from reputed builder . 

3) .if you are buying under construction flat check whether project is pre approved by repute banks  

4) most of builders are facing liquidity crunch and projects are delayed . 

5) if building has been completed and OC issued you can consider buying the flat 

6) get your agreement vetted by a lawyer 
Ajay Sethi
Advocate, Mumbai
45474 Answers
2672 Consultations

5.0 on 5.0

A building plan is sanctioned by the BDA (Bangalore Development Authority) or BBMP (Bruhat Bengaluru Mahanagara Palike) or BMRDA (Bangalore Metropolitan Region Development Authority) or BIAPPA (Bangalore International Airport Area Planning Authority) without which the construction of the building is illegal under the Karnataka Municipal Corporations (KMC) Act. A building owner has to get an approved plan from the jurisdictional Commissioner or an officer authorized by such Commissioner. However, the authorities sanction a building approval plan based on the zonal classification, road width, floor area ratio (FAR) and plot depth.
A Commencement Certificate is a legal document issued by the local authorities (BDA/BBMP & alike) after the inspection of the site. This document states that project meets the give criteria and helps in the commencement of a construction on a site by the builder. Failing to acquire a Commencement Certificate will result in the construction being considered illegal, levy penalties and can even attract an eviction notice.
With a vast amount of land being agricultural in nature in Karnataka, a Conversion Certificate is mandatory to be obtained from the legal body for the property. A Conversion Certificate is issued to change the use of the land from agricultural to non-agricultural purpose from the competent revenue authority. Further, the competent revenue authority requests the Department of Town and Country Planning to issue an NOC for the conversion of land for residential purpose. 
Khata is derived from the word ‘account’. It is an account of a person owning a property. It typically consists of (a) Khata Certificate and (b) Khata Extract. A Khata Certificate is mandatorily required for the registration of a new property and the transfer of a property. Khata Extract is nothing but obtaining the property details from the assessment registrar. It is needed while property buying and acquiring trade license. The Khata is widely referred to as A Khata and B Khata (Revenue records extract). ‘A’ Khata has properties listed under BBMP jurisdiction with legal property construction and ‘B’ Khata has properties under local jurisdiction with violated property constructions. One should avoid buying a B Khata property as it will be deemed as an illegal construction. Nevertheless B Khata may be converted to A Khata under certain schemes by paying penalty to the Government.
A Completion Certificate is issued by the municipal authorities denoting that the building is in compliance with their rules in terms of height, distance from the road, and is constructed as per the approved plans etc. This document is important at the time of purchasing a property and seeking a home loan.
When the builder applies for this Certificate, an inspection is carried out by the authorities to ensure that the construction meets all the specified norms. This certificate is obtained after the completion of the construction. It is important at the time of buying a property, seeking a home loan, before the builder allows people to take possession of the property and, for the transfer of Khata. Basically, it certifies that the project is ready for occupancy.
In Bangalore, it is mandatory for every residential complex – which has more than five units, to obtain the Occupancy Certificate. “A flat owner can occupy an apartment only once the OC is issued, as per law. He should take the physical possession of the said new property only after the builder procures an OC, certifying that the entire project is legally constructed and is now fit to be occupied by residents,
The certificate is also required when the buyer applies for Khata. However, note that OC is not required for registration of the property during purchase. Because of this buyers tend to ignore or overlook the OC. A buyer will face problems obtaining Khata without an OC. Please note that Khata is a must in case the owner plans to sell the flat in future. The OC also plays a significant role while applying for home loan or loan to purchase a resale flat.
Section 310 of the Karnataka Municipal Corporations Act makes it mandatory for building owners to obtain completion or occupancy certificates within a month of completion of the construction.

As far as the maintenance charges, it is not for the pool or gym, it is for the overall maintenance.
The supreme court in its ruling, "If a promoter does not fully disclose the common areas and facilities, he does so at his own peril. Stilt parking spaces will not cease to be part of common areas and facilities merely because the promoter has not described the same as such in the agreement with the flat purchaser. The promoter has no right to sell any portion of the building which is not a flat."
The BESCOM & BWSSB charges quoted by seems to be exorbitant.

You can approach a legal adviser who will give you a list of documents to be produced before him for rendering a legal opinion. 
T Kalaiselvan
Advocate, Vellore
35651 Answers
386 Consultations

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