• Commencement certificate

Hi,

We have booked a property which is under construction and also approved by SBI, LIC HFL. The construction is in very advanced stage (10th floor started etc). The builder has given only endorsement for the CC which he received 6 months back (in September 2015) and the basic fees receipt that he has paid. There is also some betterment charges mentioned by BBMP in the endorsement certificate which the builder has not yet paid. The final CC is also due from BBMP. Are there any risks associated with the project? Will it be able to get OC if there is no final CC but only an endorsement? Most buying/selling in the market does not seem to require CC/OC as such. So will there be any problems if in the future I plan to sell the house? Also, even if there are no plans of selling, will I face any problems due to these betterment charges in future, if they remain unpaid?
Asked 8 months ago in Property Law from Bengaluru, Karnataka
Religion: Hindu
1) it is better to buy a property wherein construction has been completed and OC issued by BBMP 

2) many builders are facing fiancial problems .

3) there is delay in completion of projects by more than 2 years . 

4)construction is not carried on as per sanctioned plans . hence BBMP refuses to issue OC 

5) you will face problems when you sell the house which does not have OC 

6) if builder has not paid betterment charges no OC would be issued 
Ajay Sethi
Advocate, Mumbai
23173 Answers
1217 Consultations
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"The absence of a valid Completion Certificate/Occupancy Certificate when buying property in Bangalore can mean the building may not have been constructed as per the approved plan, you run the risk of demolition, as it can be classified as unauthorised structure".

When one goes to a bank for mortgaging the house, they ask for a valid OC. In case you want to sell or hypothecate the property after a lapse of time, you will not be able to do so if you do not possess a valid CC or OC."Though this is not blocked by law for selling, purchasers usually insist on the OC and generally avoid buying houses without the document," Those who do buy such properties actually value the home at a much lower price." As per law a flat owner can occupy the apartment only after he gets the OC, otherwise the building is considered illegal.

In case you bought from a not very reliable builder and did not get the OC or the CC, you need to issue a notice him to apply and handover the copy of the documents within one month period from the date of issue of your notice," "Failing which, you can also get it via a consumer forum or by filing a writ petition.
The OC/CC are essential documents ensuring the security of your investment. While most developers do have clear documents and approvals, it is always safe to check and obtain them at the right time.
T Kalaiselvan
Advocate, Vellore
13969 Answers
127 Consultations
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It is a common practice on the part of civic bodies to issue an endorsement for CC instead of a final CC, but this does not mean that the OC will be denied. Unless there is a deviation from the sanctioned plan the civic bodies are bound to issue the OC. Without OC the building cannot be occupied. The OC certifies that the building is constructed in accordance with the sanctioned plan and can be occupied. Without OC the owners are vulnerable to eviction proceedings. Furthermore, your building will not fetch a good resale value.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
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there is no risk and builder will get it from the concerned authority. you can buy it. when all work according to the approved scheme will be completed the completion certificate (CC) will be issued. 
Shivendra Pratap Singh
Advocate, Lucknow
2735 Answers
41 Consultations
4.9 on 5.0

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