Risks of purchasing flats without occupancy certificate in Bangalore

998 votes

If flat has OC it would imply that building has been constructed as per sanctioned plans .

Just coz in Bangalore 80 per cent of flats don't have OC does not mean that purchaser should invest in such project . Note that without OC, the building can be demolished anytime. Basic sanitation facilities can be revoked. Govt can send you a eviction notice.

Regularization may be allowed on the payment of penalty by the builder, but imagine if the penalty is passed to the buyer I.e, owner..in that case you will suffer.

The banks and financial institutions may at times do not give loan in respect of properties which do not have OC. Furthermore, no prudent buyer will in the first place agree to purchase such property.

Also, there will be no resale value if your property does not have OC

I hope this clarifies your concern

Advocate Revathi Vivek LawRato

668 votes

I suggest you to buy the flats with OC & CC compliance, if you wish to opt for flat because in future depending on the amendment of KMC ACT(Karnataka Municipal Corporation Act) the BBMP may impose strict rules for deposit of penalty which in-turn you may have to bare the same. moreover water connection issue from BWSSB may also arise due to increase in flats without OC & CC in Bengaluru. Further with 'B' Katha(flats without OC & CC) may not fetch more profit in terms of market value in future if you wish to resale the same.

Advocate Jagadish N LawRato

542 votes

Sir, I am advising you that if the OC and CC not there, plz don't preferred to buy the property which u intended. The occupancy certificate and CC documents are important. If there is divination and not as per the plan approved by BBMP, it wil be risk in the future.

Advocate Bhojappa Kallihala LawRato

496 votes

Purchasing flats without an Occupancy Certificate (OC) in Bangalore or any other location can pose several risks and legal complications. Here's an overview:

1. Importance of OC: An OC is issued by the local municipal authority or relevant governing body after ensuring that the building complies with safety and construction standards. It certifies that the property is fit for occupancy.
2. Legal Requirement: Possessing an OC is often a legal requirement for occupying a property. Without it, you may be in violation of local building regulations.
3. Supreme Court Judgment: The Supreme Court has ruled that possession cannot be given without an OC. This means that developers or builders who provide possession of flats without an OC may be in breach of the law.
4. Risks of Purchasing Flats Without OC: Buying a flat without an OC can have several consequences, including:
   • Difficulty in selling the property in the future.
   • Ineligibility for some property-related registrations.
   • Legal complications and potential demolition of the building.
   • Limited resale value as buyers may be reluctant to purchase such properties.
5. Resale Flats: Even resale flats should ideally have a valid OC. Buyers should verify this before making a purchase to avoid legal issues later.
6. Mandatory for Registration: In many places, an OC is mandatory for property registration. Without it, you may face challenges in registering the property in your name.
7. Application for OC: If you have already occupied a flat without an OC, you can approach the local municipal authority to apply for one. However, this process may involve inspections and compliance with building codes.

In summary, it is crucial to ensure that any property you purchase, whether new or resale, has a valid OC. Possessing an OC not only ensures compliance with legal requirements but also safeguards your investment and minimizes potential risks associated with property ownership.

Advocate Chikirsha Mohanty LawRato

479 votes

In India, the developer or builder must obtain an occupancy certificate before selling any flat or apartment in a building. A flat cannot be sold without an occupancy certificate. In India, buying a flat without an OC can be considered illegal.

Advocate Chikirsha Mohanty LawRato