• Registration w/o OC and final payment notice without completion

We have a flat in bangalore for which the builder has asked us to pay the final due amount and register the property. However, the OC for the property is not in place, the builder is not ready to show proof of application for OC and the common areas and amenities like sports hall, clubhouse, internal roads etc.have not even been constructed yet, AND electricity and water connections are not in place . My question is:
1.Can the builder ask us to pay 100% of the amount without building the common amenities and electricity and water connections that have been mentioned in the sale deed? 
2. Can the builder force us to register without the OC being in place?
3. What are the options available to us as a buyer - pay 100% and register without OC and hope that the builder gets it in due course (for which there is no time frame being given) OR refuse to register but pay the amount due to avoid penalty charges?
4. is there any other option available to us a buyers who do not want to register the building without OC?

Any advice would be most appreciated.
Asked 10 months ago in Property Law from Bangalore, Karnataka
Religion: Hindu
going by the terms stated in the agreement of sale and agreement to build executed by the builder, the time for payment will be fixed as per the stage of completion (construction linked payment plan), if the agreement stipulates payment of the final or balance on completion of registration then irrespective of obtaining the OC the payment has to be made. Otherwise the builder can go ahead and cancel or terminate the agreement for non payment despite intimation.
Make the final payment and proceed for registration, if the builder fails to provide the OC (if accepted by builder to be provided) then you can proceed legally against the builder for non-compliance. 
Non completion of amenities promised by builder in the said project will entitle you to seek compensation from the consumer court.
there is no question of any force being put by builder, but non-compliance by you will entitle the builder to cancel the agreement.
there is no other option but to register without OC
Kiran N. Murthy
Advocate, Bangalore
765 Answers
50 Consultations
5.0 on 5.0
Hello,
1. No, the builder is bound to fulfill his part of the contract before he can claim payment of 100% 
2. No, the builder cannot force you to register without obtaining OC or at least showing proof of steps taken to obtain OC.
3. You can register without OC by asking the builder to give a written undertaking regarding the OC in a stipulated time, in the alternative pay the buyer a penalty in proportion to the delay being caused.
4.Those that are not willing to register by paying the entire amount can send a legal notice to the builder demanding the obtainment of OC before registration can be done.
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0
1) You should make payment of amount demanded by builder and register flat in your name

2) if builder fails to obtain OC drag builder to consumer forum and seek orders to direct builder to obtain OC  and alsos eek compensation for mental torture undergone by you 

3) dont take possession of flat till OC is obtained 
Ajay Sethi
Advocate, Mumbai
23234 Answers
1219 Consultations
5.0 on 5.0
according to common practice of construction contracts builder cannot demand payment of full amount before completion of construction. section 37/38 contract act puts a bar on builder. you may file an application before consumer forum for completion of work in stipulated period builder he creates any trouble or imposing undue pressure. 
Shivendra Pratap Singh
Advocate, Lucknow
2745 Answers
41 Consultations
4.9 on 5.0
Hi, It is better you can take back your money as Builder has not done anything as per his promise. you can file a consumer complaint  for refund of the amount.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
1. Without OC the possession of the property cannot be delivered. You should refuse to pay the balance amount until such time that the builder obtains OC and honours the agreement in letter and spirit by providing the amenities promised in the agreeement. Alternatively, you can pay under protest, but this is not advisable.

2. If the builder asks you to register without the basic amenities having been put in place then do not go for registration as it could impair your legal remedy before the courts if he subsequently dishonours the agreement, albeit the registration can be done even if OC has not been obtained. Possession follows and not precedes the execution of sale deed. 

3. Once the amenities promised in the agreement have been delivered you can have the property registered and then sue the builder to obtain OC and also compensate you for the delay. 
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
1.Can the builder ask us to pay 100% of the amount without building the common amenities and electricity and water connections that have been mentioned in the sale deed? 
You may withhold a certain portion of consideration amount as a cautionary measure and inform the builder that this is being done to ensure he completes the entire construction work and gets paid with the balance amount. Without the basic amenities being provided he cannot handover possession of property so his demand for entire money now for the incomplete building is unjustified.


2. Can the builder force us to register without the OC being in place?
Registration of plot/flat/apartment can be don even before getting OC but be it done under protest/objection.



3. What are the options available to us as a buyer - pay 100% and register without OC and hope that the builder gets it in due course (for which there is no time frame being given) OR refuse to register but pay the amount due to avoid penalty charges?
If you dont register the property on your name, you may not have a strong platform to fight against all the irregularities that may follow suit.



4. is there any other option available to us a buyers who do not want to register the building without OC?
Your refusal to get the property registered without OC will be a situation advantageous to the builder becasue you may have to run behind him for rest of the time till he gets the OC.
T Kalaiselvan
Advocate, Vellore
14008 Answers
127 Consultations
5.0 on 5.0

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