Possession without OC and CC
8 months ago
I have purchased flat which comes under BDA and RERA completion date is end of September 23. Builder has not received CC and OC till now but they are asking to pay 100% money and start interior work. So many flat owner have started their interior work. Is it fine to believe on builder and pay the 100% amount now or we should wait for the OC?
A.Dear Client,
In the absence of a Completion Certificate(CC) and Occupancy Certificate(OC) issued by the Civic Authority who approved the building plan on the application of the Builder/Developer, they are incompetent to execute an Agreement to Sale or Deed of conveyance and such a practice is defined as “unfair contract” u/s.2(46) of CPA, 2019. . Moreover, both CC and OC is also defined u/s.2(q) and 2(zf) of the Real Estate(R & D) Act, 2016 casting the obligation of the Builder/Developer to procure the said legal documents and restriction before marketing, booking, selling or offer for sale of any flat or apartments of any housing project without registering the same with the regulatory authority. Such an act of default on the part of the Builder/Developer to comply with the statutory obligations also proves his deficiency in service and being aware of his incompetency when he entered into a contract/agreement to sell or Deed of Sale and demand payments against the agreed consideration value of the property, makes him liable for unfair trade practice. An occupancy Certificate is an important legal document that certifies that the building was constructed in line with the approved plan having no deviation in plan or construction and is fit for occupancy by the buyer/owner. Moreover, a CC is not allowed to stay in the building until and unless an OC is issued in respect of said building by the authority to owner to occupy and stay legally and safely. For the deficiency of the builder, the Consumer Court can allow the complaint and pass an order directing the Builder to obtain the statutory documents and for payment of compensation to the complainant/petitioner for harassment and mental agony including the cost of litigation. Apart, when the housing project is registered under the RERA, then you can escalate your grievance before the Adjudication Officer of RERA u/s. 31 of Real Estate(R & D) Act, 2016 for redressal of grievance against the Builder for their arbitrary and unjustified demand in absence of CC & OC of the Building to protect your interest and future litigations/consequences.
In the absence of a Completion Certificate(CC) and Occupancy Certificate(OC) issued by the Civic Authority who approved the building plan on the application of the Builder/Developer, they are incompetent to execute an Agreement to Sale or Deed of conveyance and such a practice is defined as “unfair contract” u/s.2(46) of CPA, 2019. . Moreover, both CC and OC is also defined u/s.2(q) and 2(zf) of the Real Estate(R & D) Act, 2016 casting the obligation of the Builder/Developer to procure the said legal documents and restriction before marketing, booking, selling or offer for sale of any flat or apartments of any housing project without registering the same with the regulatory authority. Such an act of default on the part of the Builder/Developer to comply with the statutory obligations also proves his deficiency in service and being aware of his incompetency when he entered into a contract/agreement to sell or Deed of Sale and demand payments against the agreed consideration value of the property, makes him liable for unfair trade practice. An occupancy Certificate is an important legal document that certifies that the building was constructed in line with the approved plan having no deviation in plan or construction and is fit for occupancy by the buyer/owner. Moreover, a CC is not allowed to stay in the building until and unless an OC is issued in respect of said building by the authority to owner to occupy and stay legally and safely. For the deficiency of the builder, the Consumer Court can allow the complaint and pass an order directing the Builder to obtain the statutory documents and for payment of compensation to the complainant/petitioner for harassment and mental agony including the cost of litigation. Apart, when the housing project is registered under the RERA, then you can escalate your grievance before the Adjudication Officer of RERA u/s. 31 of Real Estate(R & D) Act, 2016 for redressal of grievance against the Builder for their arbitrary and unjustified demand in absence of CC & OC of the Building to protect your interest and future litigations/consequences.
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A.Dear Client,
In India, particularly under the Real Estate (Regulation and Development) Act, 2016 (RERA), there are certain guidelines and protections in place for homebuyers to ensure transparency and fair treatment in real estate transactions. It's important to consider these regulations and exercise caution when dealing with your situation.
Here are some factors to consider:
Occupancy Certificate (OC) and Completion Certificate (CC): The Occupancy Certificate (OC) and Completion Certificate (CC) are important documents that signify that the building has been constructed according to approved plans and is fit for occupation. These certificates are typically issued by the local municipal authority after verifying that the construction complies with safety and quality standards.
RERA Compliance: RERA mandates that builders must register their projects with the respective state's Real Estate Regulatory Authority, provide accurate project details, and timelines, and adhere to project completion dates. It also protects the interests of homebuyers, including ensuring that the builder does not demand more than a certain percentage of the total cost before a specified stage of construction.
Payment and Interior Work: It's not uncommon for builders to request payments from homebuyers for interior work after a certain stage of construction, even before receiving the OC and CC. However, it's essential to ensure that these requests align with the terms of your agreement and the legal requirements.
Risk Assessment: Paying 100% of the money without the issuance of OC and CC can expose you to risks. If there are any legal or regulatory issues with the project, your funds might be tied up, and you might face challenges in obtaining the OC and CC in the future.
Builder Reputation: Research the builder's reputation, track record, and history of completing projects on time. This can give you an idea of their credibility and reliability.
Builder's Commitment: If the builder is asking for full payment before the OC and CC, you might want to seek written assurances from the builder regarding the completion timeline, penalties for delays, and a clear plan of action in case there are issues with obtaining the OC and CC.
Escrow Account: Some states have provisions for builders to maintain a separate escrow account where the payments from homebuyers are deposited. These funds can be used for specific projects and provide a level of security for buyers.
Thanks
In India, particularly under the Real Estate (Regulation and Development) Act, 2016 (RERA), there are certain guidelines and protections in place for homebuyers to ensure transparency and fair treatment in real estate transactions. It's important to consider these regulations and exercise caution when dealing with your situation.
Here are some factors to consider:
Occupancy Certificate (OC) and Completion Certificate (CC): The Occupancy Certificate (OC) and Completion Certificate (CC) are important documents that signify that the building has been constructed according to approved plans and is fit for occupation. These certificates are typically issued by the local municipal authority after verifying that the construction complies with safety and quality standards.
RERA Compliance: RERA mandates that builders must register their projects with the respective state's Real Estate Regulatory Authority, provide accurate project details, and timelines, and adhere to project completion dates. It also protects the interests of homebuyers, including ensuring that the builder does not demand more than a certain percentage of the total cost before a specified stage of construction.
Payment and Interior Work: It's not uncommon for builders to request payments from homebuyers for interior work after a certain stage of construction, even before receiving the OC and CC. However, it's essential to ensure that these requests align with the terms of your agreement and the legal requirements.
Risk Assessment: Paying 100% of the money without the issuance of OC and CC can expose you to risks. If there are any legal or regulatory issues with the project, your funds might be tied up, and you might face challenges in obtaining the OC and CC in the future.
Builder Reputation: Research the builder's reputation, track record, and history of completing projects on time. This can give you an idea of their credibility and reliability.
Builder's Commitment: If the builder is asking for full payment before the OC and CC, you might want to seek written assurances from the builder regarding the completion timeline, penalties for delays, and a clear plan of action in case there are issues with obtaining the OC and CC.
Escrow Account: Some states have provisions for builders to maintain a separate escrow account where the payments from homebuyers are deposited. These funds can be used for specific projects and provide a level of security for buyers.
Thanks
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