23 Series 3): New SEBI Rules for Sponsors of Mutual Funds, Barking up the Right Tree: A Closer Look at Indias Pet Care Sector and Regulatory Grey Areas. You cannot even sell your property without a valid OC in hand. Lodging an FIR- an FIR can be lodged against the builder under section 405 of the Indian Penal Code (IPC) and arrest warrant will be issue for the builder. Confederation of Real Estate Developers Association of India (CREDAI), a builders lobbying group, has also welcomed the move. Issue a legal notice directing the builder to obtain an OC, Claim compensation in the consumer court if developer has delayed. Get expert legal advice from multiple lawyers within a few hours, Is possession valid without occupation certificate, Since 23 years 45 members staying with out oc and builder is not known where is he live or dead please suggest. The move will impact the realty sector positively as it empowers homebuyers, Satish Magar, national president, CREDAI, said. Connect with top Property lawyers for your specific legal issue, The information provided on LawRato.com is provided AS IS, subject to. Videos This certificate is awarded only if the authorities inspect and are satisfied that the project/building has been constructed according to the approved building plan, mandatory standards have been maintained and all the construction work including the external development work is also complete. She has vast experience in handling commercial leases/ licenses and sale agreements for acquisition of luxury residential premises by High Net Worth individuals. If the buyers have not received the OC from the builder, buyers may ask it from the builder. No OC indicates that the project is not yet fully completed and that not all services promised are provided. These actions are taken on the basis that the building was not made according to the approved plan and might not be suitable to live in. What to do if builder is not giving completion certificate GREATER NOIDA: The Greater Noida Industrial Development Authority (GNIDA) on Saturday issued a public notice, saying builders can't hand over possession of residential units to buyers without first acquiring the completion certificate, and warned of strict action if norms are not followed. Promoter charging interest @18% for non payment of balance 5% . A buyer who wishes to buy a property must still confirm that the property is free from legal complications. Form 22, known as an encumbrance certificate proforma, is commonly used to request a certificate of encumbrance. Services It further held that if the builder fails to obtain OC, then the project will be considered incomplete, and only paper possession will be observed even if the flats are handed over to the buyers. In another scenario, NRIs earn passive income such as rent and investments in India, and they need this money in their [] However, the occupation certificate may only be issued if the building has been built as per the essential requirements necessitated by the appropriate government bodies. Possession date will be sacrosanct: Further, the 'agreement of sale' will have to specifically carry the date of possession and the rate of interest in the case of any default. A completion certificate or CC is issued through the local authority after the inspection of the premises. If the developer sends a possession letter without OC, the buyer should resist such possession and refuse to pay the principal or the so-called interest claimed. An occupation certificate is a legal document issued by the local municipal authority or the concerned government agency certifying that the building is completed as per the approved plans and is fit for occupation. Noida-based Logix Group has offered possession to around 300 buyers at the Logix Blossom County project in Sector 137, which is located along the Noida-Greater Noida Expressway. During the specified period, the document ensures no lien was placed on the property. I give consent to enable NRI Legal Services to assist me with my query. One must keep in mind that no one can occupy the premises without OC, adds Mullick. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Builders should take a completion certificate from the competent authority before giving possession of flats. A consumer complaint was filed under Section 21(a)(i), read with Section 12(1)(c) and Section 13(6) of the Consumer Protection Act, 1986, read with Order 1 Rule 8 of the Code of Civil Procedure (the Complaint). What is the difference between an Encumbrance Certificate (EC), an Occupancy Certificate (OC) and a Completion Certificate (CC)? Ltd (VDB Whitefield)[1], maintained that builders should refrain from coercing flat owners to pay maintenance charges without obtaining OC from the civic authority. It will expedite the process of issuance of OC for realty projects. Arifur Rahman Khan v. DLF Southern Homes Pvt. The National Pension System or NPS is a measure to introduce a degree of financial stability Mutual Funds are one of the most incredible investment strategies that offer better returns As a homebuyer, you need to be very careful on what you should do at every stage of your purchase. The authority should implement it at the earliest, Shashank Shekhar, an apartment owner, said. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. Succession Certificate Note that the position is somewhat altered if the Consumer Protection Act applies to the agreement between the parties, e.g. However, you may visit "Cookie Settings" to provide a controlled consent. Ensure you have the required documents when applying for an encumbrance certificate. Reference The builder denied any delay and argued that hence withdrawal from project could not be permitted. Property possession issues - Indian Kaanoon However, buildings that violate the approved building plans and have certain design deviations are not eligible for occupancy certificates. The certificate is also important in scenarios when a buyer applies for Khata or when purchasing a re-sale flat. ., it was possession without occupation certificate and therefore, could not be treated as compliance with Clause 9 of the agreement between the parties. The encumbrance certificate is issued physically, offline, throughout the country. There are thousands of unit which are occupied without the Occupancy Certificate. It also ensures the electric and water supply. Some portion of construction is still pending and it will take a few months to complete. The NCDRC held that homebuyers would be liable to pay maintenance charges for their apartments only after the builder obtains OC from the civic authority, and it is not appropriate for builders to demand maintenance charges even if home buyers start residing in their apartments before that. subscribe for updates What is the heart rate in atrial fibrillation? Therefore, no maintenance charge should be levied before obtaining the OC. Apart from the above, the Court directed compensation for the delay in the project and referred to the Supreme Court decision to discuss the plight of the Complainants while citing Wg. Complete Form 22 and submit it along with the application, which must include all the necessary information. It is unsafe and unwise. If the builder fails to obtain completion within the deadline then threaten builder that you may approach the court and in that scenario you may actually approach newly found body RERA or any other forum available to you. File a consumer petition before the consumer court and claim possession of the flat, delayed possession charges, compensation etc. Upon completion of the construction, it is mandatory for the developer to get a Completion Certificate (CC) from the local authority. Possession without OC: Action ordered against 45 homebuyers Get your online template and fill it in using progressive features. 6. Property encumbrance certificates are issued by the sub-registrar office of the region in which the property is registered. The family is now facing problems in getting some key civic amenities. An occupancy Certificate (OC) is an important document that ensures the supply of basic amenities such as electricity, water and drainage system. . TV Dos and Donts of Real Estate Investments, Reasons for Investing in Indian Real Estate, Increasing Benefits of Real Estate Investment in India, Safety Net for Property buyers-Real Estate Regulatory Act (RERA), Rights of a Grandson to the Property of a Grandfather, The Rent Agreement: What you need to know, Property Partition Dispute between brothers after fathers death, Steps to take when your NRI property in India is illegally occupied, Repatriation of funds by NRIs RBI Guidelines, Documents and Tax implications, How NRIs in the US and Canada have to pay tax on capital gains from Indian mutual funds, Family Property Partition for NRIs and OCIs in India. The possession date, in case of a home purchase agreement, is the date on which the unit's possession is to be handed over to the buyer. It is an important certificate that every builder needs to obtain before handing out the possession to the buyers. Various efforts by the government to regularise them through amnesty schemes failed as the penalty was too high and not affordable for flat owners. In contrast, OC for shops or retail units in the under-construction stage can be availed later. This violation of the builders/developers goes unchecked as the allottees pays a huge amount against their unit and are under immense pressure from the builder/developer. 3. She can be reached at shalini.singh@cyrilshroff.com, The CAM Corporate Team can be reached at cam.mumbai@cyrilshroff.com, No Occupancy Certificate: No Maintenance Charges, National Consumer Disputes Redressal Commission, Supreme Court Relaxes Directions Concerning Eco-Sensitive Zones. As soon as the issue came into light, the Authority should have taken stringent action against the developer which did not happen. This cookie is set by GDPR Cookie Consent plugin. She can be reached at sana.ahmed@cyrilshroff.com, Associate in the Real Estate Practice at the Mumbai office of Cyril Amarchand Mangaldas. What if Builder does not give possession on time? What to do when builder fails to give Occupancy Certificate? "lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help. The cookies is used to store the user consent for the cookies in the category "Necessary". Builder can't force buyer to take possession of incomplete - News An encumbrance certificate costs nominally and varies from state to state. 4 How long does it take to build a house after approval? He has reported on environment and infrastructure in Delhi, Gurgaon and Panchkula in the past. This may include filing a complaint with the concerned authorities or approaching a court of law to seek appropriate relief such as filing a criminal complaint against the builder for cheating or fraud, or a civil suit for specific performance of the contract, seeking the builder to fulfill their obligation to provide the occupation certificate. The cookie is used to store the user consent for the cookies in the category "Performance". What is the Form 22 of the Encumbrance Certificate? In some states, however, an EC can be obtained online, like Andhra Pradesh, Puducherry, Telangana, Kerala, Odisha, and Tamil Nadu. As MahaRera is now monitoring the possession date, buyers need not worry as it is binding on the builders to give possession with OC to buyers before the deadline, said Prabhu. Apartment buyers and developers are happy with the new notification. Login / SC Says No! A builder cannot allot a flat without obtaining an OC. Encumbrance Certificates (EC), Occupancy Certificates (OC), and Completion Certificates (CC) are some essential documents when buying property in India. Similarly even you as a flat purchaser shall not take possession of the property unless builder has obtained OC. Corporate Services Advisory The UP-Rera notification will benefit the real estate industry as the apartment buyers can take possession and shift into ready flats without waiting for the OC, which takes time to be obtained. I purchased flat at navi mumbai, my flat is ready, but its 5 building project hence only two are ready other will took more 2 yrs for completion. The occupancy of a flat without an Occupancy Certificate can lead to various legal and safety issues. Registration of Sale Deed /Agreement to Sale, is in no way connected to CC /OC. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. - Times of India, IndiGo will double its fleet size by 2030: CEO Elbers, Largest-ever deal: IndiGo orders 500 Airbus A320 family aircraft worth $50 billion, Direct tax kitty swells 12.7% on robust advance mop-up, Terms of Use and Grievance Redressal Policy. The builder must submit the following documents to obtain OC: Within 30 days time period of the completion of a project, a builder should submit the OC application to the Municipal Corporation. The Maharashtra Real Estate Regulatory Authority (MahaRera) recently called for prosecution of 45 homebuyers for taking possession of their apartments without the premises possessing an occupation certificate (OC). Now my builder asked me to take possession as flat is ready. At the fee counter, pay the required fee. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Contact Us 2. What 3 things do you do when you recognize an emergency situation? What is the main difference between the Occupancy and Completion Certificate? He has reported on environment and infrastructure in Delhi, Gurgaon and Panchkula in the past. Section 11 (4) (b) of RERA Act states that the builders are to be responsible to obtain the completion certificate or the occupancy certificate, or both, as applicable, from the relevant competent authority as per local laws or other laws for the time being in force and to make it available to the allottees individually or to the association of allottees. How much stuff can you bring on deployment? Without an occupation certificate, the building is considered to be illegal and its possession is not considered to be valid under the law. 3. The cookie is used to store the user consent for the cookies in the category "Other. Any receipts for property taxes paid up to date. Your email address will not be published. 182 / 83, Industrial Area Phase I, Chandigarh, India 160002 Kapadnis, in his ruling, directed the Saste brothers not to create obstacles and allow the builders to complete the project. The building could have unauthorized extensions, walls, and floors and not adhere to the approved plan. How do people make money on survival on Mars? The UP-Rera order has created a positive sentiment in the market, Shakti Nath, promoter of Logix Group, said. After the completion of construction, submission of an OC application form must be made within 30 days. The occupancy certificate is awarded only after the inspection authority is satisfied that the project has been constructed under the approved building plan and mandatory norms. The notification will give legality to a buyer in cases where OC has been delayed for a long time. A completion certificate is a document that is awarded, after the inspection of a real estate project, stating that it has been constructed according to the approved building plan and that it meets all the necessary standards set by the local development authority or municipal corporation. Your email address will not be published. The completion certificate is issued to the builder/developer when the project has been completed as per the approved sanctioned plan. To obtain the Occupancy Certificate, the following documents need to be submitted: Copy of building sanction plan Building Commencement Certificate Copy of building Completion Certificate Latest property tax receipt Copies of no-objection certificates (NOCs) from pollution board or Airport Authority Also Read: Documents Required For Buying Property CentrikTM is a team of highly experienced professionals and advisors including bureaucrats, ex-government officials, advocates, bankers and other experts who provide key consulting, government liaisoning and advisory services, under one roof. We explain its importance, for developers and buyers The buyer can also claim a refund of money because the builder has breached the agreement to sell. NCLT Matters kindly advice. Offering possession without obtaining occupancy certificate is meaningless since the allottee is not permitted in law to occupy the house which does not have the requisite occupancy certificate. 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