I would like to know that can builder get occupancy certificate without having completion certificate? Hi, While in search by bank in city registrar office. When we ask builder he says that the grampanchayat OC will do, We do not know how far that is true. Dear Nirav, and many people have taken possession also,builder is sending me letter that building is completed and ready for possession and if you don’t take possession you have to pay the penalty charges . If land is A Khata, looks like there may not be any legal issues but you may end up paying the penalty. So, your previous payments may still have 12% GST rate and your builder may have to pass on the Tax credit (if any). OC certifies that the building has complied with all the required building standards, local laws and it is safe to occupy. 10,000/15,000 advocate fee.). How to get OC and what is the procedure. NOW BUILDER IS COLLECTING FROM ALL OF US THIS AMOUNT. The value as per circle rate is 960800/- 3) Assuming we take possession of flat along with No Dues and Provisional possession letter, can we rent the apartment? I hope you find this post informative. If there is no Occupation Certificate there can be significant complications as to the rights of the owner to occupy the property. Hi, Waiting for your reply. vakadi village. I also Contacted BMRDA office, they are telling that they will issue only Completion Certificate, only that is mandatory. – Is it possible to take Home Loan more than 80 % by showing more base price, which includes furniture work? Is it possible to get A khaya? Accordingly, you may then convince the other flat owners to take the required action . I am applying for a loan from a financial institution and they have asked for this. Thanks I am buying a property in an under construction project. My lawyer is telling go ahead only when they give written in sale agreement that they will provide OC . The main concern is that Greater Mohali Area Development Authority (GMADA) has NOT issued COMPLETION CERTIFICATE to the project. Commencement certificate An NHBRC certificate is important as the NHBRC will pay out to a housing consumer where: There is a major structural defect in the home as a result of the home builder not complying with the NHBRC technical requirements within 5 years of the date of occupation, and the builder has notified the home builder of the defect within those 5 years; So is it safe. I should have mentioned it as Property Tax Receipt. We are staying at Panchayet areaand our plan was sanctioned by Zilla Parishad. ***0.5% Swachh Bharat Cess & 0.5% Krishi Kalyan Cess on the value of “taxable services”. Thanks for the suggestion.Now I am about to receive the possession of my flat in Panvel.But OC seems to be of Gram panchayat with approval of sarpanch.When I asked about government bodies OC (NAINA).This area comes under NAINA- government civic body 2013.He told me that approval was done by the collector before 2013 hence OC will be given by Gram panchayat.We have not taken the approval from NAINA so how we can give OC from NAINA. Please advise me to RESTORE A-KHATA. In this case who issue the OC or PC to me? But if one is construction multiple Flats, with seperate Khata Certificates, I believe that OC/CC are essential. Is it safe to buy that flat but he’s saying that the apartment land belongs to A khatha. We constructed a house (stilt for parking + 3 floors) and have taken occupation in 2009. At the time booking the flat, builder calculated the Service Tax @ 3.5% on Basic Selling Price (BSP) and @14% on other items e.g. Most of people got loan from Sbi and lichfl, for this building. Suggest you to kindly form as a group with other Flat owners (informal group) and try to oppose this move. Now when I read closely the registry document then document mentions that if builder doesnt give OC then we can file a case against him and he has to give full refund with the interest rate of 9% per annum. How much valid is this? Do you have separate Khata/Patta for each floor? Something fishy here! Please suggest can I occupy the flat without OC as I have no option and take legal action against the builder who has been smart by mentioning that the possession is for only interiors and getting the OC will take time without being specific about the date. Need your help to understand how i can get the A khata issued. I have purchased a 1bhk flat in pune. Sir, What is Civic body means? Is the original Building sanction plan approved by any civic body? An Occupation Certificate (OC) is issued after the construction meets the building standards. Is there anything I need to check. If I does the mutation process now, I will have to produce heir ship certificate, which costs around Rs. Under construction property & tax implications. Definetly ask for OC (along with other Flat owners). I talk to lawyer and asked about OC but he said this is ok – not important. Building Commencement Certificate. Please let me know how much time it will take in its natural way with out any bribe/extra payments. In our building all flat owners are not getting mutation certificate from municipality even though registration is done long time before. Hi, I m Prathamesh, want to ask u about OC, We are going to purchace a flat in thane, Maharashtra. Sorry it was typo , Khaya , Khara refers to Khata means i was trying to refer A Khata. I am planning to buy a 3BHK in Bangalore. Further, financial institutions like LIC Housing Finance, State Bank of India, and HDFC have already sanctioned property loans for some of the residents? Kindly go through this article…click here.. dear sreekanth, i have booked a flat in pune lohegaon the area comes under gram panchayat but approval authority is PMRDA, my query is that builer is giving OC to those who have already taken posseeeion, along with possession letter issued by builder. Dear Sridhar, Seller earlier purchased from builder or may be he is 2nd buyer. But delivery of the flat will take atleast 6-8 months as they say because many works still pending. What is the timeline of issuing OC after initial request? Dear Ferrao, Can you kindly guide me on next step to be taken in this regard. (no society) building. Have you formed Residents’ association? In one such another case observes Co-operative Guru Shri P. Y. Rathod that the builder constructed small flats targeting the middle-income group.The authorities, however, refused to issue occupancy certificate because of deviation from the approved plan. This has also been confirmed from Noida Authority. Dear Sandy, Builder applied . It’s been 1 year now. Dear Saurabh, ", Connect with Him :
But, as they are charging high maintenance cost, you may object. If its like an independent house, OC may not be required. They do not have an OC. I am surprised that 300 families have already taken the possession. * EC can any one clarify this? Could you please advise me on this matter. Advice me. As far as I know the OC is not compulsory for the properties which are under the panchayat limits. how we proceed for this, let me know whom i have to contact? Is it possible for a building to have OC but not BCC? None of us have received completion certificate, occupancy certificate from builder, even after asking him time to time. But that village is now included in KDMC & Flat owner is paying tax to KDMC. but after booking only i came to know the Builder does not have the commencement certificate. As a reason they are saying they have received partial completion certificate, hence no HIRA registration required for Phase 1 blocks and as a benefit of CC, I don’t have to pay GST. I would like to get an understanding on the requirement for BCC/ CC and OC for an individual house (a 2BHK in 700 sq. Dear Amol, If it is as per building plan then they can surely apply for OC from local civic body and get OC for you . Kindly consult a lawyer as a group and get advice. Coming to the work ib the building,there are some pending works which are left in the apartment like transformer (electricity) , lift and elevation of the building and compound walls and majorly he didnt complete Main doors & window fittings and painting works in my flat as well, What is the next legal action by flat owner and by the SBI Banker. Your builder has to complete the construction and has to get CC for you. If so, you (flat owners) may have to shell out penalty amount in future (if akrama sakrama comes up). Read : All about Khata Certificate.. Your prospective buyer may ask for these documents! Personal Finance & Financial Literacy Blog in India, Last updated: January 4, 2020 | by Sreekanth Reddy 438 Comments. Dear Krishna, I’m planning to buy a flat at dhanori, Pune. I have started living from Feb’2015, What to do sir, should i contact commercial tax department in Haryana at which level. Thanks for your response I have booked a 2 BHK flat in Raj Nagar Extension Ghaziabad in 2015 under sub vention scheme. Mtr or Rs. Are you familiar with any such cases where OC is not needed? Latest Property Tax receipt etc.. Do inquire with other Flat owners if they have got OCs? Definately once construction is over we are going to ask for OC but what if he did the same to us what he did to his previous project customers . I booked a flat in April 2012 and registration was done in June 2012. If there is no OC, risk is on you/flat owners. Suggest you to form as a group and consult a civil lawyer. Dear karunakara, Did you get legal opinion before booking the flat? Dear Saurabh, Can you help me decide, which would be better way to proceed in above 3 cases, and also help me understand whether the GST that the builder is collecting from buyers is actually applicable only at the time of registration? When building, selling or buying a free hold home, one of the certificates that our Seeff agents will discuss with you, in addition to the various clearance certificates, is that of an Occupational Certificate.. And builder says the building is G+3, and comes under Panchayat limit as of now, So OC is not mandatory document, and none of the apartments in this area has OC. You can find a certifier online. Dear Sunita, 4 – It is possible provided you have such loan eligibility and also depends from bank to bank.But most of the banks have now become very conservative. he tell me the property is collector approved . I am not sure about the date. But I am not very sure about it. Then after some time it was postponed to March 2016. Our building has been completed sometimes in 2014, though no CC/OC is issued, whereas RERA came into effect from May, 2016. He i yet to receive CC for 13 to 16 floors.But it kind of does not add up. As this is an independent house, you may ignore GST. my dad is the owner of that house. Civic body can be your local town planning authority / Municipality / Corporation.. The purchasers of flats in these towers were handed over to the flats on receipt of the Occupancy Certificates on different dates between the above stated period. Is it under Panchayat limits? I am living in a property of area 300 sq yards. The Plan is Sanctioned by BMRDA (Annekal Planning Authority) 2. Please advise on LTCG AND utilisation of sale of pune plot amount after about a month or so. An occupancy certificate also known as an OC is issued by a development authority or munic ipal corporation to a newly co nstructed building. Kindly read : Also, as the CC is already available do we need to still pay the Service Tax and VAT? Dear h233576, The procedure to get the Occupancy Certificate (Bhogavta) is to submit all relevent NOCs like PWD for lifts, Garden NOC, Drainage NOC, Fire NOC etc to PMC. The apartment is ready for possession. I got the copy of CC that is given to builder by civic body. All the best! Dear Deepak, Also builders are managing fake OC’s and getting required approvals and later time buyer is getting struck in this process .Procedures should be made more realistic set backs , simple and easy approval process only through online , bring strong regulations start of the house construction not at the end of the house . address – off veera desai , amboli hills. We have given our land for promoting and we are getting flats for our residence. Its old property approximately 15 years old. Please suggest the authenticity of above said statements given by promoter. I too believe that VAT and Service Tax are not applicable for Constructed Property. Can he do it? Kindly re-phrase it . And he is providing No Dues and Provisional possession letter in return. but the builder is charging 12 for total amount of flat with demand letter dated 14.03.2019. how to handle this situation. Anayways, you have already bought the flat and nothing else can be done now. I believe that if has got Completion Certificate (CC) for the project, he/she cannot charge Value Added Tax (VAT) on transaction for sale of flat effected after securing CC. Collector approval without having those deviations considered is it illegal to occupy such buildings? Yes, OC has to issued for each individual Flat owner. it is almost about to complete project. Dear Krishna, Is the building illegal without having occupancy certificate? And it is approved by BBMP and they says land and flats are ‘A Khata’. Does apartment built on BDA ‘A’ khata site need OC ? -Agreement Signed in 2009 wherein there is a open clause of Taxes also, we have to pay incase. Does BDA have any online information portal available for these kind of applications? It mentions the second floor as only having one bedroom and 1 bathroom (it has three of each, post it’s rebuild in 2003. Dear Sreedevi ..Buy at your own risk. May I know what is GR? Builder has to provide atleast CC. Thank you for helping out people here. We are already suffering due to the substandard work done by the builder both in the apartment construction and the interior works, which unfortunately we found out after moving in. I can confidently say that there are thousands of apartments in cities like Bengaluru, Mumbai or Delhi which have been occupied without any Occupancy Certificates. If these documents are not available with the seller or builder then there is every possibility that the building may not be constructed as per the approved plan or local building standards. shell i proceed for loan processing? We all talked in person with the builder about the case but builder is not ready to give anything in written about the consequences of case. Hi Sreekanth, I am planning to buy a villa in Bangalore. Dear Saipriya, People are living in all of these buildings. How to get Occupancy Certificate? As your builder says, the end user (flat owner) has to bear the penalty for the mistakes the builder has done. The Project is of 4 buildings. Could you please suggest: What Happens if You Donât Get One? But the major problem there is the builder doesent have Occupation Certificate from TMC (Thane Municipal corp.) therfore it is very difficult process of loan from bank we are facing. 3) I will take lawyer opinion. They should get cc & issue OC to all the Flat owners. If you were aware of these, why did you buy this property? Dear Nagaraj, 2 – I am not sure about this and you may check with your employer if they accept this letter as a valid doc. Please suggest what would be the next course of action. Hi I’m staying bat Karnataka rural gram panchayat area. Does Possession Letter also means possesion certificate or Occupancy Certificate? I have booked a flat on 8th floor of a proposed 18 storey building. You may also consult a CA. Please suggest, what action should we take? Now builder is saying that your flat is ready for registration. Buyer’s lawyer? And pressurised us to take handover of the funds and maintain property by our own. The financial institution has given me two options – Either to get the OC or CC + Blue print. What about other flat owners? Avinash Unfortunately anything is possible in our country. Assessment bill Dear deepkumar ..No it is not considered as equivalent to OC. The society is not yet formed , as the builder has not completed the entire project . Building and Safety to issue a Certificate of Occupancy. A legal notice can also be sent to the Builder for obtaining the Occupation Certificate. I always suggest my clients not to go with a property where there are some issues with CC/OC. What is Occupancy Certificate or Possession certificate? Dear Nishant, If so, whom to contact? In practice, your builder or project manager should obtain the Certificate for you after final municipal inspections have confirmed compliance as above, but make sure you get it before you take occupation. Am I right? and not we live 200 families. After the completion of entire project, Partial OCs are replaced by final OC (Consolidated document). Note :That land belongs to Land lord & the sale deed is between the land lord & builder only. Kindly first take legal opinion from a civil lawyer and then can take up this issue at consumer court. But the builder is telling that there is 15% deviation from the plan, so they cannot provide OC (Occupancy Certificate). I have found your post very useful. Also, if an apartment building has less than 12 or 12 flats, no VAT. Until now builder was maintaining flat from society maintenance funds collected at the time of selling flat. Dear Gaurav, Dear Srinivas, Body (Either Excise Dept/Sales Tax Dept / Lawyer /Town Planning etc.) 2)How to make sure money collected for BWSSB and BESCOM are given to authorities? Please advise if it is ok to proceed? Is it advisable to buy this flat since we are interested.. if akrama-sakrama law to be enforced what will be the approx fine by govt ? Could you please suggest something ? How can i obtain the OC from KDMC ? When was the Registration done? under construction flats with buyer). All that is needed is Political Will. Suggest you to consult a CA in this regard.. Is this property located in a row house or villa project? Dear Kamlesh..If you have paid for 615sq ft and if your house area measures 615 sq ft, I believe that sale deed should reflect the same. I am about to buy 302, which is in mortgage they said. An Occupation Certificate verifies that the Principal Certifying Authority (Council or a Private Certifier) is satisfied that the building is suitable to occupy or and satisfies the relevant requirements of the Building Code of Australia (BCA). Now I have a few questions and seek clarification from you. is that even possible to get part OC? We did not give him the full amount of 50,000 instead we gave only 80% of it as he still has to complete few interior works. Even without having ‘commencement certificate’ how can they sell the flats. Recently our property is covered under KDMC (municipal corporation) (earlier was under gram panchayat) and we don’t have OC for our Building. But what will the builder do with amount that he collected as 12 % GST in all my payments done so far. The Plan is sanctioned by BMRDA. Dear Saj, I am not willing to register my flat before getting OC……. Can you provide me link to check online about present owner of the flat, to cross check? Plot is in gurgaon in a private builder township. 3 – Has the society been formed? Thank you for this post that helps commoners like me to understand the legal requirements easily and you have also provided samples, which is really great. Note that OC is not required for registration of the property..so your builder can ask for registration of property and he can promise to complete the other pending works (amenities) very soon. If possible, check out with other owners as well. Hi Sreekanth, We have built a new house in our 40*60 size site in Bangalore. If you can provide details to above points or direct me where I can find relevant information, that will help me & other blog readers a lot, as this is a situation which most buyers face sooner or later. Hello Sir, I have planned to purchase a flat in Bhayander Mumbai but the owner does not holds an OCCUPANCY CERTIFICATE, as he he informed that Builder has not applied for the same due to Financial cunch . You must hurriedly take legal process. Also discussed the OC and CC issue with society and they are even more confused on it. I visited one builder today in Gurgaon who is selling builder floors. 1) We are buying a flat in Banglore. He has provided approved plan , society registrations, and he is going to change the electricity bill to my name, Building is seven year old and the seller is an investor so he is making first agreement. The builder was BDA (Bangalore Development Authority) so I don’t suppose they would have a municipal sanction, would they? The construction of third building has lagged considerably due to statutory clearances. I have purchased a flat in Aluva, Kerala, India. Builder charging Service tax even though I occupied the flat and building is complete in all respect since long time ago. Dear Rkkumar..If he does not have the CC, better you avoid buying a property in that apartment. I am planning to buy a 3 BHK flay in Western Suburb. Certificate of Occupancy Resources â By City Society has filled the application for OC but still not got. I want ask you some of my dout related to builder.