• OC for newly constructed flat

I have booked two flats in a multistoried complex in Bangalore. Constrn is completed and more than 60% of the 700 flats occupied by buyers.  Builder is not giving OC. They say BBMP is delaying it.
Can I take possession and register the flats paying final payment?  
Will I get Khatha transfer without OC.  I want to sell one flat and rent out the other one. Will there be any problems for this.
I was told that most of the flats in bangalore are without OC. and if I go to Consumer forum it will go for a long period.  If I want to go to consumer forum, can I do after taking possession?
Please give me a clear answer. and help me.
Thanks
C.Sankara Iyer
Asked 8 months ago in Property Law from Chennai, Tamil Nadu
Religion: Hindu
1) you can register your agreement 

2)you should not take possession of flat until OC is issued

3) Upon the completion of the building construction, the builder or the developer of the apartment has to apply for the ‘building completion certificate’ with the local authorities ).

4) If the building construction is completed as per the building approval plan and if it also meets other building standards like distance from road, height of the building, if rain water harvesting system is in place etc., the civic authorities will issue CC.

5) Once the builder receives the Completion Certificate, they have to obtain Occupation Certificate from the civic bodies.

OC certifies that the building has complied with all the required building standards, local laws and it is safe to occupy


6) you should move consumer forum against builder and obtain orders to direct builder to obtain OC within particular period 

7) you may not get market price of your flat if building does not have OC 
Ajay Sethi
Advocate, Mumbai
23267 Answers
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for delay in completion of project builder has to pay you compensation as provided in agreement 
Ajay Sethi
Advocate, Mumbai
23267 Answers
1219 Consultations
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builder will not permit you to occupy flat without making full payment . you should register your sale deed but not take possession until OC is issued 
Ajay Sethi
Advocate, Mumbai
23267 Answers
1219 Consultations
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1) register flat then file complaint before consumer forum 

2) cases in consumer forum take around 2 years to be disposed of 
Ajay Sethi
Advocate, Mumbai
23267 Answers
1219 Consultations
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Without OC the building cannot be occupied. You can take possession under protest and then move to court against builder and BBMC but this will not restrain BBMC from acting against the owners unless there is an injunction issued by the court. 

2. A legal notice can be issued for not giving compensation as promised for delay in completion and then a suit may be filed to recover it,

3. Renting out the flat is possible even without OC but the tenant will also be subject to action from civic authorities for occupying the building without OC.

4. You have no right to occupy the flat unless the sale deed is registered in your favour.

5. Consumer forum and even civil courts are now quick in disposing such case, albeit the process laid down in the law will have to be followed.
Ashish Davessar
Advocate, Jaipur
18151 Answers
448 Consultations
5.0 on 5.0
you should avoid to take possession of the flat in absence of occupancy certificate. first you send a legal notice to the builder for providing OC in stipulated time, thereafter u should file a case before consumer forum. 
Shivendra Pratap Singh
Advocate, Lucknow
2752 Answers
41 Consultations
4.9 on 5.0
according to section  73 of the contract act you will get compensation as per the rate fixed in agreement because indemnity clause has been inserted in the agreement.
Shivendra Pratap Singh
Advocate, Lucknow
2752 Answers
41 Consultations
4.9 on 5.0
Can I take possession and register the flats paying final payment?  
Will I get Khatha transfer without OC.  I want to sell one flat and rent out the other one. Will there be any problems for this.
I was told that most of the flats in bangalore are without OC. and if I go to Consumer forum it will go for a long period.  If I want to go to consumer forum, can I do after taking possession?
Please give me a clear answer. and help me.

There has been lot of inquiries regarding OC.
The builders or developers do not obtain OC so easily owing to the deviations in constructions. 
The builder may send you an email or communication stating that Final Payment Request Letter (FPRL) with details of the final amounts due to be paid by you. It goes on to inform you about the consequences of delay. “Please note that if you fail to take possession of your unit, for any reason, by ……. (date), you will be charged Rs 10,000 per month as Holding and Caretaker Charges, till the unit is taken over. In case the unit is not taken over during the Warranty Period you will not be entitled for any rectification in your Unit. In case you fail to register your unit by ……. (date), you will be charged Rs 10,000 as one time documentation, coordination and logistic charges.” 
What has been described is often the regimen followed by builders in handing over “completed” apartments to buyers. In all of this, one very important factor has been forgotten. It is called the Occupancy Certificate.
The Occupancy Certificate (OC) is a document issued by a statutory authority (such as BBMP and BDA in Bangalore) and it gives the applicant (builder) permission to “occupy” the property. It is required for commercial buildings and for residential buildings that have more than five units. OC is issued for an entire building, or a part thereof, and is not given to individual flats. As per Section 5.6 of the Bangalore Municipal Building Bye-laws 2003, “The Authority shall decide after due physical inspection of the building (including whether the owner had obtained commencement certificate as per section 300 of the Karnataka Municipal Corporations Act, 1976 and compliance regarding production of all required documents including clearance from the Fire Service Department in the case of high rise buildings at the time of submitting application) and intimate the applicant within thirty days of receipt of the intimation whether the application for occupancy certificate is accepted or rejected. In case, the application is accepted, the occupancy certificate shall be issued in the form given in Schedule IX provided the building is in accordance with the sanctioned plan.” 
Simply put, this means that the builder, on completion of the building, needs to apply to the statutory authority (BBMP/ BDA) for OC. If the building has been built as per the sanctioned plan, and fulfils the other legal requirements, the authority is supposed to issue the OC within 30 days. It is illegal for the builder to hand over the flats to the buyers without receiving the OC. It is illegal for the flats to be occupied / rented without the OC. - 
The law states that it is illegal for a building without OC to be occupied. There are several reasons for this, including: The building is not as per the sanctioned plan, has illegal unsanctioned floors/ walls/ extensions The building is not safe to inhabit because of quality of construction, safety of stairs/ lifts, electrical safety, fire safety, airline safety, etc. The building is not capable of fulfilling its mandatory role in managing its waste, sewage, water. 
Builders, without fulfilling the mandatory terms of sanction and/or promises to the buyers are eager to hand over and move on to the next project. By getting people to live in the flats, they create a shield for themselves. They also escape from the delay penalty clauses that are in the agreement. - Buyers are eager to take possession of their homes. Many are not even aware of OC and what it means. - Water, sanitary and electrical connections are being given on a permanent basis even without OC. - There are tenants waiting to rent the property. - The law is not being enforced by the government authorities. Finally, it is the buyer who pays the price. BBMP is quite aware of hundreds of buildings without OC. Owners are paying property tax, but still, until they get the OC, they face the risk of losing the property.
T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
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As per agreement, builder has to pay Rs.3 per sq.ft compensation for delay in completion. Completion promised was Dec 2013. He is not responding to my demand What is action possible.

You have to notify about this to the builder by oral and written communications to him, if he is not responding or complying then you may issue a legal notice followed by a case before the consumer forum for relief and remedy.
T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
5.0 on 5.0
Is there any problems to rent out the flat without OC?

There are hundreds of buildings without OC in Bangalore and some have been occupied for over 10 years. It seems, they are waiting for Akrama Sakrama. 
The OC is totally the responsibility of the builder and penalty clauses should be severe. - If you have already booked the apartment and executed the agreement, do not take possession or register the flat without the OC. There are usually penalty clauses in the agreement that will force the builder to pay in case the delay goes beyond the grace period specified. Delay in issue of OC is usually one of the safety walls behind which builders take refuge, but if delay is on account of violations, it is possible to make the builder liable. Sometimes, builders will get a self-certification of completion done by an architect. Do not fall for this and insist on the official government OC.  
So you decide whether to take possession without OC and then rent it out or not. 
T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
5.0 on 5.0
One flat key is with me given for doing wood work.  Can I occupy the flat without making final payment and registration siting the dispute reg OC and compensation?

Until the flat is not registered on your name, it will not become your flat legally, so decide how you can occupy the same without the same being handed over to you or registered on your name. 
T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
5.0 on 5.0
Should I register the flat and then go to consumer forum or go before regn? Will it not take too much time in the consumer forum?  Till then I will lose the Rent income.

You can take possession under objection and then approach the consumer forum for the deficiencies found including OC and seek proper compensation accordingly. 
T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
5.0 on 5.0

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