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Occupancy Certificate, Possession Certificate & Completion Certificate – Meaning & Importance

Last updated: January 4, 2020 | by

Do you own a Flat in an Apartment / high rise building? (Or) Have you booked a Flat which is under Construction? Then you need to know the importance of documents like Completion Certificate (CC) and Occupancy Certificate (OC). Occupancy Certificate is also known as Possession Certificate (PC).

As these certificates are not required while registering a property, most of the home buyers tend to overlook or ignore collecting these documents from their previous owners or builders of the apartment.

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. In many of the cases, the building plans of these apartments are approved but they do not get OCs due to not sticking to the approved building plan or due to other violations.

Occupancy certificate not available risks

Obtaining Occupancy Certificate and Completion certificate can be mandatory under respective State laws.  As per these state laws, one cannot legally move into a building unless the developer gets an occupancy certificate from the respective local administrative or civic bodies. The corporation or municipality can ask the apartment owners to leave such illegally occupied flats or impose heavy penalties in the name of ‘regularization’.

In this post let us understand – What is Building Completion Certificate? What is Occupancy Certificate or Possession certificate? What is the difference between Occupancy Certificate & Completion Certificate? What is the importance of these documents? How to get Occupancy Certificate?

What is Building Completion Certificate (BCC)?

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 (like BDA or BBMP in Bangalore or PMC in Pune).

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.

BCC looks like as the one in the below image; (Pic courtesy : apartmentadda.com)

Building Completion Certificate sample pic Occupancy certificate

What is Occupancy Certificate or Possession Certificate?

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. Occupancy certificate is issued by local municipal authorities or building proposal department that provides no objection to occupy the building under reference for its specified use. The OC is issued only once the building has been completed in all respects and can be occupied.

The legal possession of the Flat by the Owner is valid only with the Occupancy Certificate.

So, the main difference between Completion certificate & Occupancy Certificate is that CC shows that the building construction is done as per the plan which was approved by the concerned authorities. And after getting this, occupancy certificate will be given to all buyers so that they can take possession of their Flats / properties.

Important points on Completion Certificate & Occupancy Certificate

  • Who can apply for BCC or CC ? – Builder has to apply for CC.
  • Who will issue BCC? – Local civic bodies will issue BCC.
  • Who can apply for OC? – The builder has to obtain OC. However, the Flat owner can also apply for OC. If you have already occupied your FLAT without OC, you can approach the Local Corporation or municipality and apply for OC. If the building has been constructed as per the approved plans, building standards, fire safety standards and if it also has BCC then you can get OC in 30 days (legally). However, the law says that if the building has been constructed without any plans it cannot be regularized (if there are structural deviations) and OC may not be issued in such cases.
  • How to get Occupancy Certificate or Possession Certificate? – You may have to submit below documents along with the application form;
    • Copy of building sanction plan (building plan approval copy).
    • Building Commencement Certificate.
    • Copy of Building Completion Certificate.
    • Latest Property Tax receipt
    • Copies of No Objection Certificates (NOCs) of pollution board or Airport authority etc.,
  • Who will issue OC? – Local civic bodies will issue OC.
  • Kindly note that buildings which have deviations beyond legally allowed limits can be treated as illegal constructions. The local civic bodies may not issue Occupation Certificate in these cases.
  • Why CC or OC are important? Is it safe to buy a flat without OC/CC?
    • To claim Income Tax benefits on your home loan, your employer may ask you to submit Occupancy Certificate along with the home loan statement.
    • Occupying a property without an OC is considered as illegal and local civic bodies can ask you to vacate the property.
    • You may have to face trouble in getting water connection or sanitary connection or electricity supply connection.
    • Most of the financial institutions may insist on Possession Certificate to sanction home loans.
    • You may find it very difficult to find a buyer in case if you wish to sell your Flat in the future.
    • Without an OC, it may be very difficult to obtain Khata Certificate.
  • Can Builders issue Partial Occupancy Certificate? – When there are blocks or phases of large projects to be developed with varying completion dates, the concerned authority can grant a partial occupancy certificate for the completed phases/blocks. After the completion of entire project, Partial OCs are replaced by final OC (Consolidated document). Do note that it can be a tough task to get a home loan with a Partial OC.
  • If your builder is not obtaining OC, you can issue a notice to him to apply and handover the required documents. Failing which, you can also approach a consumer forum or can file a writ petition.
  • Do note that obtaining Occupancy certificate for an independent house (row house) is not mandatory.
  • A builder can get a provisional building completion certificate from local authorities. But do note that this is valid for six months only. He has to obtain final building completion certificate.

Most of the errant builders may have good connections and they may easily escape through various loop holes in the law. So, end of the day it’s the home buyers who end up suffering for no fault of theirs.

Be extra cautious when you are buying Flats (even if the builders are reputed ones). Check out the Building Commencement Certificate. Also, do insist on obtaining Completion Certificate and Occupancy Certificate (Possession Certificate) from your builder or owner. 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.

If you are a new flat owner, insist on an Occupancy Certificate from your builder before you occupy the property. If you have already occupied the property, get your OC at the earliest. You may check with other Flat owners and can apply for OC as a group or through your Residents’ Welfare Association.

I believe that Occupancy Certificate should be made mandatory for the registration of Flats. It can also be made mandatory for getting water, sanitary and electrical connections. This can make a huge difference to buyers of Flats. All that is needed is Political Will.

I hope you find this post informative. Kindly share your views on this topic.

(Image courtesy of stockimages at FreeDigitalPhotos.net)

Sreekanth Reddy:

Sreekanth is the Man behind ReLakhs.com. He is an Independent Certified Financial Planner (CFP), engaged in blogging & property consultancy for the last 12 years through his firm ReLakhs Financial Services . He is not associated with any Financial product / service provider. The main aim of his blog is to "help investors take informed financial decisions." "Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. These should not be construed as investment advice or legal opinion."

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  • Hi, is there a way to check online if the builder has got the CC and OC? Or to verify that the CC and OC produced by builder is genuine.

  • If my House number is wrongly entered in the Completion certificate , how can i get it corrected?

  • Hi Sir,

    I wanted to know if the Exclusive Terrace area (Balcony) is also an integral part of Blueprint which builder submits to the sanctioning authority to get the building and floor plan approvals.

    Thanks and Regards,
    Rahul Malhotra

  • Dear Sir,
    I decided to purchase 2 bhk resale flat in Bangalore. It is in the Fourth floor. It is Ground plus 3 floors. At the time of construction, the builder got plan sanctioned for 2 bhk only and he deviated the plan by building 3 bhk flats at the corner of every floor. So it is instead of 52 flats now it is 56 flats. All 2 bhk flats have been issued B khatha. It is told by seller that land is A katha. It is completed and handed over in 2009.
    Please give your advise in the matter.

    Thanking You

  • Dear Sir,

    I am planning to buy a resale flat in cooperative housing society in Mumbai. This property s 11 years old. The property has a partial OC. All major banks are providing home loan on this property. I think this building i which i plan to buy was part of a larger project which got shelved for whatever reasons.. My concern is that should i go ahead and buy the property though it does not have full OC and only partial OC as banks are giving loan on the same.

    Also water pipeline is not there for the building and as informed to me by the society they had filed a case against the builder for the same which they have won recently (3 months back) and soon water would be made available.

    Please guide as your point of view would really help

    Thank you.

  • Dear Srikanth sir

    I have a major issue . I am from Bangalore and I am living in a Apartment of 8 units and 1 illegal unit i.e of the builder (which is a clear deviation as per plan). Also in each floor approval is given for 1 unit but there are 2 flat units built.
    We do not have Oc, Cc. However with great difficulty we have managed to get B-khata and have latest tax paid receipts. We have all other amenities like water meter and individual electric meter.
    At the time of buying we dint have much knowledge about this and fell for this trap. Upon checking with the builder for Oc,Cc he states that it’s very common in Bangalore and 90% of the flats are like this .
    Now we are having disputes with the builder regarding formation of an association under Kaoa 1972, which needs oc,cc as a prerequisite.
    Is there any way to get Oc, cc now?? If so whom to approach? We have also checked the BBMP ward office and they too say that oc, cc is not possible to get. Kindly suggest me any way to get these documents .
    Now we are planning to file a case against the builder for the losses we have incurred in consumer forum.
    I need more help regarding this so kindly email me if possible. Looking forward to hear from you.
    Thank you

  • I am about to buy a builder floor (new construction, 60*40 site, 4 houses) in Bangalore, and lately found that though builder can provide A Khata, he cannot provide OC/CC. He is claiming that for less than 8 units, OC not required. Can you guide me

  • Hi Sreekanth,

    I had bought a flat in noida extension , and builder has got the occupancy certificate from local authority.

    I would like to know that can builder get occupancy certificate without having completion certificate?

    There are some objections raised by authority and they have not granted them completion certificate and asked him to submit some documents. So is the occupancy certificate valid without having the completion certificate?

    Kindly acknowledge and revert…

    Thanks

  • Hi Sreekanth, I am planning to buy a villa in Bangalore. There are 208 total villa in that project and the possession for many of those were in 2017. The villa I am buying is incomplete (90% complete like some more) and builder is going to finish and handover in 3 months. Now, is completion certificate applicable for this type of projects? If yes, will completion certificate be for the whole project or individual villa? If CC applicable for the whole project, then builder should have received CC by now (yet to hear back from builder), then only builder has given possession to almost 150 residents? If CC is received already, should there be GST?

  • Hi I’m staying bat Karnataka rural gram panchayat area. Purchase a Land in 1992 and paying regular taxes in panchayat for that. On 2001 I’ve build a house there and I was at service in Delhi so concerning engineer didn’t take the plan approved by panchayat. Now I’m asking to Panchayat for Occupancy certificate and approved it now and I’m ready to pay fines for that. Need to know can it be done now as I’m new to this don’t know. Can anyone help me out with that!! Thanks!!

  • Hello Sreekanth

    My query is related to income tax return.

    If in a township, there are many triplex , each floor of a triplex is a seperate apartment , of seperate owners.

    Can I rent out my part of that triplex?

    The entire housing scheme is still under construction and not complete.
    But the said triplex is complete.

    How can I file for tax returns and what documents would I need from the builder for my part of the compelted triplex.,when I rent it and file for my income tax for this ?

  • Hello.
    If in a township plan , every triplex has a seperate owner and said triplex building is complete,but the entire project is not complete.

    The individual floor of the triplex can be put on rent ?
    How do I file income tax for that particular part which is completed only.

    When the entire project is still under construction.?

  • Hi Srikanth, I am currently living in Bengaluru. I am purchasing a flat here whose OC is awaited however people are living in the society. There are total 5 buildings in this project from which only 2 buildings have OC, rest 3 buildings OC is still awaited. People are living in all of these buildings. I have checked OC application that Builder made to BDA, it have date of mid 2018 and till Oct 2020 there is no OC.

    Could you please suggest:
    What is the timeline of issuing OC after initial request?
    How can I check why it is still pending?
    Does BDA have any online information portal available for these kind of applications?

  • Hi Srikanth. One question. We are currently occupants of a house built in 1989. It has three floors, with one flat on each floor, all owned by separate entities. While the OC from 1989 mentions the second floor (which we, the first floor owners) are wanting to buy. It mentions the second floor as only having one bedroom and 1 bathroom (it has three of each, post it’s rebuild in 2003. The current owner does not have the OC from the then builder. Question – 1. do we need the OC since it’s almost an independence building 2. Can we as news owners, apply for it then? Can you suggest a solution basically

    • Dear Pooja,
      If its like an independent house, OC may not be required.
      Do you have separate Khata/Patta for each floor? (separate property tax).
      Suggest you to also check with any local Civil Engineer or lawyer on this..

  • Hi Sreekanth,

    Many thanks for your article. This is very informative. I need your guidance on my below matter.

    I have booked a 2 BHK flat in Raj Nagar Extension Ghaziabad in 2015 under sub vention scheme. Now builder has issued a final demand letter however below are my queries and I need your valuable advice:-

    1. Builder has added the Metro charge of Rs. 56000 (Rs.50/- per square feet). I have checked some articles and found that metro charge levied by GDA is applicable @ Rs.250/-per Sq. Mtr or Rs. 23.22/- per Sq. ft. In my current tower there must be atleast more than 100 flats so logically builder should apportion this charge across all the flats rather assuming there is one flat only.

    2. Builder is currently providing the possession of the flats without CC/OC and even asking the PDC for the registry of the property. I believe in the absence of OC builder can’t even raise the final demand for payment.

    3. 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. PLC, FPLC etc. so total estimated Service tax was approx. Rs. 1.56 Lakh however in his final demand letter Builder changed the GST rate to 12% (only on balance amount) although my flat comes under the definition of ‘Affordable House’ as per GST i.e. Carpet area is less than 60 Sqm in Metro city (Ghaziabad is part of metro city as per definition) so logically the GST should be calculated @1% without ITC although Builder has the option to opt for either 5% with ITC or 1% without ITC, why builder opt for 5% with ITC and if builder opt for with ITC option, builder should pass on the ITC benefit to buyer.

    4. As per sub-vention scheme builder were supposed to reimburse the interest portion of EMI paid by homebuyer to bank however in my case builder reimbursed only few EMI’s and rest are not yet paid so I would like to check whether builder can deduct this reimbursement from the cost of the property and then calculate the GST on balance amount although rate of GST also seems to be disputed as builder charged @12% however it should be 1%.

    5. Builder is also asking for IFMS for 18 months and builder doesn’t have the OC so logically this demand is invalid. I believe once builder will get the OC, IFMS clause applicable.

    Regards

    Rohit Kansal

    • Dear Rohit,
      1 – I am not sure on this, you may cross-check with a local civil lawyer.
      2 – Yes, request for CC/OC.
      3 – If the builder is not passing on the ITR benefit then this can be escalated or contested in court of law (GST).
      4 & 5 – These are very specific queries, suggest you to kindly consult a civil lawyer.

  • Hi Sreekanth, I have an apartment in Bangalore completed in 2013 end. It is a standalone building with G+4 floors and 23 Flats. The time I purchased the flat in 2013 after consulting a lawyer for proper documentation verification, there was no CC/OC for this property. I am now planning to resale my apartment, is it mandatory to have CC/OC for this property purchased in 2013?

    • Dear Aniket,
      What about other flat owners?
      May I know if all the owners of the Flats have Khatha done in their names?
      Was it an under-construction property when you bought it?

      • Thanks Sreekanth for the revert.
        I believe they have done khata transfer. It is a B Khata done from BBMP..
        Many owners bought the flats when the property was in under construction, and many as ready to move in.. I bought the apartment ready to move-in in Nov 2013..
        Please do let me know on further information..
        Kindly advise..

  • Hello Sreekanth

    Firstly , Many thanks for this forum of yours and it is really very helpful for us

    Appreciate if you could help me with the Service Tax rates that was applicable for the following periods for construction of new flats by builders

    In 2014 : ____ (including any CESS /Workers Welfare tax, etc…)
    In 2015 : ____
    In 2016 : ____

    I understand from 1st July 2017 it is now GST and at 12% …but wanted to know the rates for the previous years as there were revisions happening and also had a Swatch bharat CESS and Krishi Cess also to be included in previous years….

    if you could provide me the above info it would be very helpful (if breakup is possible, even more helpful…)

    Thanks..Akam

    • Dear Akam,

      2014 : 12% , CESS – > 2% of S.T. SE CESS -> 1% of S.T.

      01.06.2015 to 14.11.2015 14%

      15.11.2015 onwards 14.50% **

      01.06.2016 onwards 15%***

      **0.5% Swachh Bharat Cess on the value of “taxable services”. Thus, effective rate is 14.50%

      ***0.5% Swachh Bharat Cess & 0.5% Krishi Kalyan Cess on the value of “taxable services”.
      Thus, effective rate is 15%.

      Suggest you to consult a CA in this regard..

  • Hi..In Highrise building to get CC ,is there necessary to complete the basements slab with driveway too? can any one clarify this?

  • Dear Srikanth,

    I have purchased a flat in Aluva, Kerala, India. According to my agreement, I want to receive the completed flat on 31.03.2019. As per the agreement I want to give them a grace period of 3 months due to natural calamities and my due date will be 30.06.2019 but the builder hand over my flat in August 2019. Can I go for compensation for the delay in handing over? In the project builder not provided any of the amenities as per their advertisement and can I file a case against the builder and claim compensation? According to Kerala RERA all ongoing projects must register under RERA before 31.03.2020. The builder takes an occupancy certificate from the local authority but not completed STP, FIRE & SAFETY, GENERATOR, etc and still some of the fully paid member’s registration or name change not completed in local body and this builder and the same project will fall under an ongoing project under Kerala RERA or not?

    I am waiting for your early reply.

  • Dear Sreekanth garu,

    I Purchased independent house in Hyderabad (GHMC-Alwal) on 2017.I don’t have Occupancy certificate. I am paying muncipality tax. How to get OC and what is the procedure.

  • I have recently purchased a flat having partial OC. The builder has collected advance maintenance for two years and since the entire project is not completed builder has not yet received the final OC. The builder has also not given the amenities as per agreement and yet demanding further two years maintenance and threatening to society members that he will take action if maintenance not paid. What is the remedy please advice.

  • I have purchased property at Dum Dum Municipality of West Bengal. But registration is being delayed by the promoter. Whether OC and CC reqired before registration , as per RERA.

  • Hi Sreekanth,

    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.

    I would like to get an understanding on the requirement for BCC/ CC and OC for an individual house (a 2BHK in 700 sq. ft) constructed in one of the panchayats coming under Coimbatore district. While trying to claim for LOHP, the corporate finance of my employer has asked me to produce a BCC or OC from the builder while the builder is not aware of any such things.

    Your clarification would help 100s of people like me who are opting to buy/ build individual homes with home loans through small builders.

    Thanks in advance.

  • If we bring Occupancy certificate requirement is mandatory at the end of building handover , Buyers are already paid huge percentage to builder and not much options to buyers as they may not hav so much knowledge . 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 . Today government officials are looting the public .

  • Hi Sreekatnth,

    In a 5 tower project, Builder is saying it has HIRA (wb equivalent for RERA) registration for 3,4 and 5th tower (named as Phase II) and does not have the HIRA registration for Tower 1 and 2 (Phase I). 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 have selected one flat in Tower1. But delivery of the flat will take atleast 6-8 months as they say because many works still pending. Should I go ahead? what all things I should be checking further and be careful about to proceed.

    Regards
    Biswajit

  • I have applied for Possession certificate(PC) for a BDA allotted plot online through SAKALA and the status comes as APPROVED.How do I download the Possession Certificate(PC) online.

  • Hi i have a complicate query.
    i have booked 2bhk flat in 2014 and paid around 17 lacs towards the flat. somehow construction was stopped for 1 yr and due to miscommunication we cancelled the flat. At the time of refund somehow builder negotiated rate again we retained our flat rather booked 3 bhk. Now flat is almost ready but buildings final work going on. in between we paid balance with gst. the 17 with tax rate in 2014. according to new rule the gst is 5per. but the builder is charging 12 for total amount of flat with demand letter dated 14.03.2019. how to handle this situation. do i have to pay 12 gst on total amount. Thanks in Advance.
    Ashiya

  • Thank you for your valued comments.
    Our complex is a big Project comprising of 30 HIG Blocks/ towers and 53 MIG Blocks / towers and 12 LIG Blocks / towers to be constructed in phases. Phase I of the project comprising of 23 HIG Blocks/towers has been completed. The Blocks / towers in this Phase were constructed on various dates between 2014 and 2019. 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. These occupancy certificates issued by Municipality on different dates are silent about the fact whether they are partial or not. This was commented in my earlier post.

    Now the builder is taking a position that the Phase has been completed as the completion/ occupancy certificates of the towers were already obtained and the Phase should not come under the purview of West Bengal HIRA Act, 2017 ( eqivalent to RERA Act ). But in my opinion till the Project Completion Certificate and Occupancy Certificates of the towers are received from the local Municipality, the Project will fall under HIRA Act. I request for your considered views.

  • I have taken a flat in one of the blocks/ towers in a project which is to be developed in phases and each phase is to be completed on different dates. I have receieved a copy of the OC receieved by the builder from municipality for my tower which does not mention whether it is partial occupancy certificate or not. However the project is not completed and all towers are also not constructed. What is legal status of my flat in my tower regarding occupancy certificate ie whether it is partial or completed?

  • Hi Sreekanth Reddy,
    I am planning to purchase resale apartment which has A khata for land and B khata for apartment but they have received Occupancy Certificate and Completion Certficate. Owner is telling don’t worry A khata we will get it down the line. I am confused couple you please help. Is it ok to proceed with B khata apartment?

  • If a builder asks for farmers compensation after registry made by purchaser. Shall I pay to them as verbally it was not informed to me, but written in Maintenance Agreement in a hidden form. Builder not provide us CC & OC till date

  • kindly advise on followingsituation:
    One plot was registered in Pune on 30 April 1986 in the name of my wife
    at a cost of Rs 30000/-
    Expenses after that have been basically on levelling the ground, wire fencing, then boundary wall, frequent travel from Delhi to Pune.
    The long term capital gains tax will need to be calculated.
    The value as per circle rate is 960800/-
    fair market value as on 1.4.81 is to be ascertained.

    I need to offset the expenses on house construction against the sale of pune plot. New house is in my name.
    However contribution from other family members have been used to construct the property
    Completion certificate is being applied for the same.

    Please advise on LTCG AND utilisation of sale of pune plot amount after about a month or so.

    • Dear Mr SINGH,

      With effective from Financial Year 2017-18, the base year for calculation of Indexation is going to be 2001.

      Till Financial year 2016-17, the base year used to be FY 1981-82. To calculate the capital gains at the time of selling any property purchased before 1981, its purchase price is now calculated on the basis of the fair market value of 1981. Calculation at the fair market value of 2001 will increase the cost of acquisition and lower the capital gain.

      Suggest you to kindly consult a CA for exact Capital gain calculations.

      Kindly read :
      * How to save Capital Gains Tax on Sale of Land / House Property?

  • Our building is around 10 years old without OC in Thane. The Builder is not issuing OC. Please enlighten me about Deemed OC. Thanks

  • Hi sreekanth,
    If I enter in to sale agreement for sale of flat before getting o.c without advance amount and total amount will be paid after receipt of O.C ,and get it registered,is it necessary to pay GST?

  • Hi Sreekanth,

    I am planning to buy a 3BHK in Bangalore. Its old property approximately 15 years old. The owner has all the necessary documents like A khata, property tax paid till date and EC but doesn’t have occupancy certificate. When I queried him he saidthat the construction plan for J M building was approved by the HAL Sanitary Board in the late 90s/early 2000s. This was before the Murugeshpalya area came under the purview of the BBMP. Occupancy Certificates were not required at that time. He has also checked with a couple of the office bearers of the Residents Welfare Association who confirmed the same. It has a proper A-Khata. In addition, the residents of the building are paying property taxes (this is not allowed in the case of illegal structures). Further, financial institutions like LIC Housing Finance, State Bank of India, and HDFC have already sanctioned property loans for some of the residents? I am confused what should I do. Should I buy it?

  • Sir,

    I have one question. if builder has not completed his project of 7 building. among 7 building he has completed 4. Also he has not given all the amenities which he has promised earlier. So can he gives completion certificate and possession certificate of this completed 4 building?

    • Dear Ravindra,

      Can Builders issue Partial Occupancy Certificate? – When there are blocks or phases of large projects to be developed with varying completion dates, the concerned authority can grant a partial occupancy certificate for the completed phases/blocks. After the completion of entire project, Partial OCs are replaced by final OC (Consolidated document). Do note that it can be a tough task to get a home loan with a Partial OC.

  • Hi Sreekanth,

    My question is about GST calculation.

    There has been news circulating since 2 days that a decision will be made in Jan 2019, to reduce the GST of under construction flats for which completion certificate is not issued, from 12% to 5%, due to the fact that most of the builders are not giving the Input Tax Credit(ITC) back to the buyers.

    URL : https://goo.gl/xX9j7M

    Currently my builder is considering 12% as GST, of the all part payments that I’m paying them. I have paid 60 Lakhs so far of which 12% which is 7.2L was calculated as GST.

    If I go for registration right now, I have to pay 12 % GST on flat cost plus 3.5 % as registration charges as this has not obtained completion and occupancy certificate. In this case, I have wait for the Input tax credit(ITC) from the builder credited back to buyers, which may be a question mark.

    If I go for registration after the decision has been made in Jan 2019, there is a doubt whether the builder will consider only 5% GST, or they may say 12% GST collected so far has been credited to the Govt, and I have to wait for ITC.

    If I wait for the completion/ occupancy certificate to be issued, there would not be any GST as its not in construction stage, but the registration fee would be charged at 6%. The total effective charges will be only 6% in this case as there is no GST. But what will the builder do with amount that he collected as 12 % GST in all my payments done so far.

    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? If yes, will the builder give the GST collected back to buyers, with out having to wait for ITC.

  • Hi….
    This is very informative article.
    I have one query.
    After GST implementation i have purchased under construction independent house , do i need to pay GST? if yes, how much?
    Builder is asking for 12%.

  • I have following questions in this respect:-

    1. Can municipality charge taxes to the flat owners if there is no cc or oc issued to the builder but the flat owner has taken possession.

    2. Even if the municipality taxes the flat owners, who is supposed to pay the taxes, flat owner or the developer?

    3. Can developer collect maintenance from the flat owners in case cc/oc is not issued to the building.

    Thanks in advance
    Pravin Mhatre

      • Dear Mr. Shreekanth Reddy

        Answer to your item no. 3 above is no.

        ++++++

        However, do you think that the society can be formed without CC/OC issued to the building?

        We have noted that the authorities are charging Water and electricity at the commercial rate as if construction activity in progress, the reason being CC/OC has not been issued by the authority.

        Are we supposed to pay for this exorbitant charges which are actually on developers account? Developer has issued a letter at the time of possession that he shall be responsible for the consequences for handing possession without OC.

        Thanks In Advance
        Pravin Mhatre

        • Dear Pravin,
          I believe that society can be formed without OC/CC. But, as they are charging high maintenance cost, you may object.
          Suggest you to kindly form as a group with other Flat owners (informal group) and try to oppose this move.

          Related article..

          • Does RERA applicable to us? Our building has been completed sometimes in 2014, though no CC/OC is issued, whereas RERA came into effect from May, 2016.

            • Dear Pravin,
              According to the Central government RERA rules, all those projects which have not received the competition certificate will come under the ambit of the RERA but finally it depends on the rules notified by the state government also.

              You may take help of a civil lawyer or contact your State RERA.

            • extended building plan sanctioned in the year of 2005 under bengal municipal act for personal residential accommodation and occupied after construction providing all amenities and enjoying till this day, 2109. Is the building illegal without having occupancy certificate?

  • Sir,
    Builder is forming society without giving possession letter. is it possible to do this or is it according to law? second thing I want ask you that, If builder is not giving any attested certificates to members can I ask society committee to bring CC,OC or any such certificates for me after society formation?
    will they follow up with builder or government bodies?

  • As mentioned above, “Do note that obtaining Occupancy certificate for an independent house (row house) is not mandatory.”.
    So if builder has completed the construction of a row house (in 2016) before GST and also not registered with RERA, and also don’t have Occupancy Certificate (OC), does GST applicable for such row house?
    As OC is not applicable, can GST be saved? If yes how could we save the GST?

      • Thank you Sreekanth for your reply.
        But builder doesn’t have Completion Certificate also. So, what document should be submitted/showcased to the government officials to state them that GST is not applicable on this property?

  • Is there any formula to calculate penalty on delayed application for “Completion Certificate” of a residential building?

  • Hi,

    In case of a plot in a gated community along with Villas, what would be applicable?
    My query particularly is for the plot which I bought from the builder what document(OC /CC) should the builder mandatorily have provided me at the time of sending me the letter of posession? Should I go ahead and do the registration of the plot or insist for OC/CC as applicable?
    Thanks any information on this would be highly appreciated

    Plot is in gurgaon in a private builder township.

  • My society refuses to hand over copies of documents requested to them which are required to sell my flat and the buyer to get loan from bank
    Copy of
    Occupation certificate
    Commencement certificate
    Property registration Card
    Development plan
    Assessment bill
    How do I get these documents

  • Hi Sreekanth, I am getting a flat without OC/CC. The builder says he is having 15% deviation from plan, hence he is not getting CC/OC. Can that be the only reason? I am puzzled and need more details on when the CC/OC can be denied. Need your help here to find more holes in the project. FYI, project is completed and almost fully sold out, with more than 70% families already staying in the project with all electricity and water connection and access to roads etc

  • Hi Sreekanth, We have built a new house in our 40*60 size site in Bangalore. Would like to know what all documents we need to receive from our Architect? Total constructed 4 floors and 1 small room in terrace. Built 2 duplex houses 1 above the other so in total 4 floors.

    • Dear Chandan,
      Check out documents like Building Plan sanction document, Plan blueprint, Bescom / BWSSB connection related documents, Construction related bills (Cost) etc.,

  • Flat construction complited b4 3 years. I m purchasing from2nd reseller.still complition certificate not issued by Corporation. Builder applied . All flats are sold in this highrise building without CC. What to do for CC? Can i purchase this flat. Pl guide.

  • Flat is in resale. Seller earlier purchased from builder or may be he is 2nd buyer. In this case who issue the OC or PC to me? Suppose he has not OC. Than collected from whom?

  • I have purchased a flat in the project has 12 flats. have asked builder to provide BCC and OC. but builders says that BCC and OC is not mandatory for small projects. Please advice on this.

  • Hi

    Wish to inquire that in case a project is handed over in phases, Partial OC’s will be issued to buyers, right? Can one claim pre EMI deduction under income tax on basis of Partial OC or is Final OC a pre-requisite?

  • Dear Sreekanth,

    I am planning to purchase a FLAT in Varthur, Bangalore.

    Builder has given the OC acknowledgement. Is there anyway that we can track the OC status?

    After purchasing if OC is not obtained or rejected due to any reason, can I file a legal petition against the builder?

    If yes, please share the consequences that I need to face.

    Please share your opinion and thoughts on this.

    Thanks in advance.

    Cheers,
    krishna

    • Dear KRISHNA,
      I am not sure if there is any facility/provision to track the OC status.
      Is the ack given by the Builder on their letter head or is it by a civil authority? (BBMP)??

  • DEAR SIR
    I HAVE PURCHASED FLAT DOMBIVALI NADIVLI GAON DESLE PADA GRAMPANCHAYT ME ISME KYA KYA PROPERTY PAPER BUILDER SE LU

  • I m planning to buy a flat in Mumbai Mira road .but the construction is just started.and I m planning to book a flat in it.its a huge township.i don’t know whether the builder has oc or cc…what should I do.

  • Dear Sir ,

    I have purchased 1 bhk flat in pune narhe goan under grampanchayat . this is NA sanctioned plan .building completed 2015 but still completion certificate not given by builder and builder said due to this gaon (Narhe) is come under pmc so completion certificate not getting .Another problem is water pipline not increased and builder done society formation and handover to flat owner

    Can I take society in this situation ?

    And also building road entrance problem

    every day tanker need to society

    A Wing 1 bhk
    b wing 2 bhk
    Total 52 Flats

    • Dear Sandip,
      I think he can get CC from panchayat office, but OC may not be mandatory.
      Suggest you to talk to other Flat owners and take collective decision.

  • Hi,

    I’m planning to buy a flat at dhanori, Pune. It’s ready to move property but builder still do not have completion certificate. On asking for completion certificate he says he can provide the completion certificate from his architect, as his architect is going to apply in municipal corporation for completion certificate. So how much can we rely on cc provided by architect ??
    Another thing is in current scenario completion certificate from government body is not obtained still he is removing the taxation part from the deal, i.e’ service tax and vat on the basis of cc from architect. same he is mentioning in the agreement paper as a clause saying builder has obtained cc from architect. Is this valid ??
    We have booked and deal was finalized on 28/04/2017 and the date which he is going to reflect on cc is 29/04/2017, so are we suppose to pay the service tax and vat amount or our agreement value shall be adjusted to the total amount of deal fix in such a way that even we do not pay service tax and vat we shall have net amount equal to the deal.??

    • Dear Supriya,
      Kindly note that VAT is not applicable on completed projects.
      You may request for CC/OC issued by the civic body and then may go ahead with the deal. Kindly check with other prospective Flat buyers as well, if possible.

  • I have booked a flat in Bangalore near hebbal flyover. Now builder is saying that your flat is ready for registration. Though my flat is ready but amenities like swimming pool, lift, fire safety, water connection etc are not in place. Can i deny registration of my flat without occupancy certificate? legally? because i know that once i will register the flat and pay the balance money, he may not obliged to complete other works and expedite the process of obtaining occupancy certificate. I am not willing to register my flat before getting OC……. can i deny the registration of my flat without OC and insist developer to provide OC first, then registration. Kindly advise.

    Regards,
    Sunil

    • Dear Sunil.. This is tricky scenario.
      Always, advisable to avoid tussle with builders and get things done amicably.
      Kindly first try checking with other neighbor flat owners.
      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.
      “But, a builder cannot force possession of property if the OC or CC is not issued by the local town planning authority / civic body.”

  • I have purchased a 1bhk flat in pune. possession is delayed by one year. now flat is ready but the covered parking allotted to me as per agreement is not ready and it will take around 2 years for completion as the parking allotted to me is at the basement of another building which will take 2 yrs for completion. builder ask me take possession but for these 2 years i will not have any specific parking lot. i have to park my car anywhere is society at empty space. in this case will it be OK if I take possession or will it be OK if i wait for 2 yrs and claim charges to builder for delayed possession.

      • I booked the flat in 2010 in NOIDA (UP) and as per agreement the possession shedule was in Oct. 2013. My noida builder has sent a Offer of Possession in june 2016 with final demand. I paid the entire 100% payment in nov. 2016. Yesterday telephonic call received from builder office for taking possession of flat. I visited the site and came to know that CC/OC is not with the builder even till date. This has also been confirmed from Noida Authority. About 300 families are already residing in under construction property. Kindly advise whether I should take letter of Possession without CC/OC or insist for CC/OC first. Other families are residing without CC/OC. My builder is also denying for payment of late possession penalty. Kindly advise what should I do in these circumstances as you have earlier advised to avoid tussle with builder and get all these things settled amicably. I shall be highly obliged it your comments are received through mail. A sentence ” The delayed possession penalty is not payable to defaulters members” is used in the agreement. I have paid three payment late by 15-20 days for which I requested the builder to please charge 18% interest as applicable for delayed payment but he has never sent a interest demand invariably with the routine demand. Kindly help and advice at the earliest.
        A. K. Parwani
        Mail id – managercs** @gmail.com

        • Dear Parwani,
          I always suggest my clients not to go with a property where there are some issues with CC/OC.
          I am surprised that 300 families have already taken the possession.
          The thing here is even you can take the possession but in future if there are any penalties or issues then you along with other Flat owners have to bear them and not the builder.
          I cant comment on ‘delayed possession penalty’ without going through the documents. You may consult a Civil lawyer regarding this and take advice.

          • Dear Reddy,

            The rules framed by the UP government and titled Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) (Amendment) Rules, 2015, define “ongoing projects” as unfinished projects without completion certificates. Projects in the rules which have been excluded are those “where all development work have been completed and sale/lease deeds of sixty percent of the apartments/houses/plots have been executed” and “where all development works have been completed and application has been filed with the competent authority for issue of completion certificate.”

            I think Builders are in a hurry to give possession to home buyers to avoid RERA penalty for late delivery of apartments. Therefore it is assumed that Buyers moving in “before completion” will not get compensation for late delivery.

            Former CEO of the Noida Authority released a Public Notice in the leading daily News Paper ” HINDUSTAN TIMES” dated 28.09.2016 published on 29.09.2016, he warned the Builders and Home Buyers against shifting to their flats for which an Occupancy Certificate is yet to be issued. Yesterday a telephonic call received from Builder”s office for taking the possession. I refused to take the possession without CC/OC.

            Therefore even after making of 100% payment of my unit, I have finally decided not to take physical possession of my unit unless and until CC/OC is not provided by the Noida Authority only just to avail the benefit/security of RERA. Am I right?

            Further it is learnt that UP Govt. is also implementing the RERA norms as directed by the Central Govt. Perhaps, Hon’ble Chief Minister of UP has announced that no dilution in the RERA rules will be allowed.

            I am not going the take the possession. Kindly advice

            A. K. Parwani
            99689968

  • Hi shrikanth,

    How much time will required to get an OC after getting possession.
    Builder started giving possession from April 2017 and i have booked flat in that building now i need to make an agreement so if will get OC then i don’t need to pay vat and service tax,when i have go for inquiry then they said that we cant assure about the time period for getting OC.
    So please suggest what action need to required for the same.

    Thanks in advance,
    Nishant

    • Dear Nishant,
      Yes, VAT and Service Tax are not applicable for “Constructed Property”.
      There is no time-limit as such, if everything is in place, you should be able to get OC in few days. You may try checking this with other Flat owners.

      • Thanks for info Sreekanth ,But what you suggest shall it be better to do agreement before getting OC or after getting OC,because sales people are saying we cant wait for OC.
        Due to which i am confused.

        Please give your opinion.
        Thanks in advance

        Regards,
        Nishant

  • Dear Sreekanth,

    I have found your post very useful. I am planning to buy a 3 BHK flay in Western Suburb. The complex is of 3 towers, out of which 2 towers are 75% complete and the third tower is under construction. The builder says he will give possession in 6 months.
    At present I am getting a very good rate, and they are saying after OC price will increase.

    Please advise should I buy now or after getting OC.

    What if I dont get possession in 6 months ?
    How much does the price increase after getting OC?

    I sincerely await your advice.

  • Dear Sir,

    Need your valuable advice on below mentioned issue.

    The Project is of 4 buildings. Out of which 2 are complete and construction for 3rd is just started. Builder is saying that the whole project will be completed till 2018. I got the possession of flat in 2016. It’s been 1 year now. I asked for OC, CC, NoC & Possession letter but builder denied. He said that as the project is not complete yet, so he can’t provide the documents. No one from our society received the documents yet.

    I am planning to resale the flat, so can I sale it? What all document should I have to resale the flat, please advise.

  • Hi Sreekanth,

    I am planning to buy apartment flat near by Electronic city (bangalore) which is constructed by Ajantha Royal builder and it is G +4 type where they don’t have OC. And it is approved by BBMP and they says land and flats are ‘A Khata’.

    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 ? Please advise.

    We have second option as Grama panchayat category flat also which we are interested on. It is on 2nd floor and he built 5 floors where he have approval only to built till 4th floor..

    what is the best option..

    • Dear Kannan,
      If there is no OC, risk is on you/flat owners. You may have to bear the penalty in future and get OC.
      Gram panchayat flat can be considered if all documents are in place, but do not buy a flat which is in 5th floor.

      • Dear Sreekanth,

        I am planing to buy a same kind of Gram panchayat approval flat(1st Floor) appartment (Pragna Uptown) in electronic city . Builder said its Panchayat approved. set back is 5 feet. its G+4 and pent house.

        What kind of details/documents need to confirm with builder if it is panchayat approved ?

        Looking forward to hear from your. This will help me to understand more in detailed.

        Regards,
        Krishna

        • Dear Krishna,
          You may ask for a copy of Building plan approval that he might have got from Panchayat office.
          In case, the land is a Converted one (Agri to Residential), you may ask for a copy of DC Conversion document.

          • Hi Sreekanth,

            Thank you so much for the information 🙂

            And i also would like to know like. is there any problems in future that may face about this panchayat approved property ?

            Is there anything that we need to pay again in the future ?

            I asked the builder, he said that there is no CC, OC for this property.

            Regards,
            Krishna

            • Dear Krishna .. If there are any structural deviations (more than legally ok), you may have to pay for it.
              I think you can ask for CC which is given by Panchayat office.
              OC may not be mandatory for Panchayat limits properties.

  • Hi Sreekanth,
    I am living in a property of area 300 sq yards. This land was given to us via a gift deed from my father to my brother, sister and myself. We constructed a house (stilt for parking + 3 floors) and have taken occupation in 2009. We are paying property taxes which were assessed individually for all three of us since possession. My question is, do I need an occupancy certificate for this property if I am applying for a water connection.
    Thanks in advance for your help in this.

  • 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. My query is that OC issued is for the whole society with mention of my flat no also as can be occupied but does the OC is issued in the name of each and every individual flat owners. also what should be the contents of possession letter which builder gives at the time of possession.

  • Dear Sir
    I reside at Dombivali (Thane, Maharashtra). Recently our property is covered under KDMC (municipal corporation) (earlier was under gram panchayat) and we don’t have OC for our Building.
    Now can we apply for OC and what is procedure? What documents are required?

    • Dear TANAJI,
      If you have already taken the possession of Flat when it was under Panchayat limits then I dont think OC is mandatory.
      But you may visit your Municipal corporation and check if OC can be issued to your building and is it mandatory..

      You may have to submit below documents along with the application form;
      Copy of building sanction plan (building plan approval copy).
      Building Commencement Certificate.
      Copy of Building Completion Certificate.
      Latest Property Tax receipt
      Copies of No Objection Certificates (NOCs) of pollution board or Airport authority etc.,

  • Hi ,
    I am staying Navi Mumbai(Maharashtra) and hunting for property. I have almost finalize one property of 1.5 BHK which is complete and OC is in progress. I have not yet given token amount as I found rates of property compare to locality is bit high. Builder claiming that I need not to pay VAT and service tax if I book a flat after receiving OC. Is it true ?

    Looking for Expert advice.

    Thanks,
    Vijaykumar Shelake

  • Hi Sreekanth, I just came across your blog and read this article. It is very informative. I have a question. I am planning to buy an under construction flat in Bandra, Mumbai. Builder has got CC (commencement) until 12 floor, but he plans to build 16 more floors. He says possession will be given by Dec 2017. He i yet to receive CC for 13 to 16 floors.But it kind of does not add up. he says he will get “part OC” meaning upto 12 floors. Is that legal? is that even possible to get part OC? Please guide. Thank you.

  • Hi
    I booked a residential plot in Mohali (Chandigarh) with a well known builder in 2011. As per agreement the possession of plot was to be given within 2 years but the developer didn’t. I paid the full amount as per builder’s demand notices. Now in 2017 builder is offering the possession. I checked the site of plot, although the internal roads are constructed properly but the external main road to the project is not constructed and a temporary road not according to plan is constructed. Also the electricity connection to the project is temporary. Under RTI , I got information from electricity department, they said that due to absence of proper main road we can’t provide electricity connection. The main concern is that Greater Mohali Area Development Authority (GMADA) has NOT issued COMPLETION CERTIFICATE to the project. Nobody has yet constructed any house there. What can I do now? Can I go to Consumer Court for the refund of my money. Thanks
    Parm

    • Dear Parminder,
      Kindly first take legal opinion from a civil lawyer and then can take up this issue at consumer court. Do you have any contacts with other Plot owners of same layout/project?

  • Hello
    I took possession of the flat in Jan 2016 , with the complete set of documents . Now the builder is claiming that i have installment pending to be paid as per the Agreement amount . Due to some issue from their side , the demand was never made and hence was never recovered from me .
    Wanted to check , if i am liable to pay the builder now , since i have all the relevant documents with me . I have closed the home loan also . The society is not yet formed , as the builder has not completed the entire project .

    • Dear Riva,
      If it is a genuine demand (due), as part of your agreement, it is advisable to clear it off (why to invite unwarranted trouble from builder).
      What about other flat owners?

  • Hi Sreekanth,
    I appreciate your effort and immense knowledge sharing for our queries,
    I am planning to buy a property built over 60X40 site where it has Grnd(Parking)+ 4 floors and each floor having 2 flats.
    After reading your article, I asked for CC and OC for the same to builder for which builder said for such small property no CC or OC will be issued, bigger projects having more than 30-40 flats need such certificates and shouldn’t matter buying such property. Is it so…? please help me to understand whether I should proceed or not …?

    Also, can you please point me to trustable advocates here in Bangalore South who can help me verifying these documents.

    Thanks,
    Madhusudan

    • Dear Madhusudan,
      For independent houses, OC or CC may not be required.
      But if one is construction multiple Flats, with seperate Khata Certificates, I believe that OC/CC are essential.
      I have relocated from Blr to AP last year, so do not have any contacts wrt legal consultants.

  • I HV purchased an apartment and the builder is failed to gv the oc certificate, and I applied for oc certificate. bbmp as not approved what should I do now…please gv advise….

  • I have Purchased a Flat in the year 2010 & Since 2011 Residing their.In the year 2016 Municipal Corporation approached for Property Tax since last 03 years,When I said him that Occupance Certificate & Completion certificate not given by the builder till now & I have already filed a case on builder for it.But they forced me for Property Tax.At that time property not transfered in my name in municipal record but they take one application for transfer property in my name & take tax of previous years from me. Is It legal? They are also not confirming me about completion certificate. A lot of works are pending,Seepage in entire sewerage lines & Water is leaking from Pipes.Cracks are showing in walls & paint is pending.I also give a letter to Municipal Corpotaion regarding completion certificate but the not issued till date.Please advise what I have to do?

  • Hi,
    This is really helpful article to know the meaning and difference of different terms related to home buying and occupancy.
    In continuation to this would like to know if the earlier sanctioned approved plans for buildings and the master plans are revised will the part completion certificate issued by Collector will it be valid or need to re apply for approval?
    Also now that area if it comes under pmrda who will look into the matter where earlier plans are revised but not taken approval again.
    If there are deviations in terms of over head Water tank not constructed on terrace area and common amenities space development has deviations who will re examine the site? Will it be collector or pmrda official?
    Collector approval without having those deviations considered is it illegal to occupy such buildings?

    Thanks in advance,
    Anil.

  • I have done some internal changes, not disturbed structure like column and beam
    Our building dont have OC.
    will it affect me or society as we have applied for OC

  • Hi,

    The information provided is very much informative and helpful for new buyers.

  • sir,
    i am going to buy a flat in under construction 7 storied building which is Gram panchayat /zilla parisad .
    my queries
    (1) what document i should ask to builder for checking the status of property to confirm regarding legal or illegal
    (2) where can i get confirmation about property

    thanks

    • Dear Jagdish,
      You can ask for a copy of land sale deed with mother deed, latest EC, building sanction plan, approval from local panchayat, Khata extract copy for land etc.,
      Kindly take advice from local civil lawyer.

  • Dear Sir,

    I have purchased flat in 2009 in a complex which was under-construction. The same has been completed in 2013 and all flat owners has taken the possession of the property. We are getting the property tax bill and water bill regularly but the developer has not given us the OC. Kindly guide us regarding the options available if any to get the Occupancy certificate.

  • Hello Sreekanth ,

    I have query regarding Service Tax paid to builder while buying Flat in Pune.
    I booked flat on 29-SEP-2015 in Pune and done registration on 26-Nov-2015.
    before Flat’s registration builder got Occupancy Certificate[Bhogwata Pramanpatra] from Pune Municipal Corporation on 10-Nov-2015.
    Below are timeline for payment details –
    Booking Date – 29-Sep-2015.
    Occupancy Certificate[Bhogwata Pramanpatra] Received Date – 10-Nov-2015.
    Registration/down Payment [20%] – 16-Nov-2015
    Registration Date – 26-Nov-2015
    Final loan disbursement – 6 – Jan-2016.

    So in this case what will be Service Tax –
    Only on the Booking Amount as Occupancy Certificate is received before Registration and other payments are done after receving Occupancy Certificate.
    OR
    On the Flat’s Aggrement Cost as booking is done on before getting Occupancy Certificate?

    Please help me on this.

  • Hi Sreekanth Garu,

    Thanks for the useful information. I have a query here, I took loan for a property(Independent house) under construction, I am paying pre EMI for the same from the past 1 year. For the tax exemptions on Interest, I have to submit a Property handover certificate in my office. However when I ask my builder he is saying that the construction will be completed by March 2017 which is just before the closing of FY 2016-17. He also saying that in case if the construction is not completed he will give the certificate which I can submit in my office.

    Is it possible to give any Property handover certificate just like that? How much valid is this?

    I could not claim the registration amount of the land in FY 2015-16, is there any way after completion of the house I can claim in the corresponding fiscal year.

    Any help is highly appreciated, and thanks in advance.

    Regards,
    Satish Reddy.

  • Gadadhar Rakshit
    I purchased a flat from Shristi infrastructure developement corporation at Haldia West bengal recently through home loan by 25 Lacs. Builder charging Service tax even though I occupied the flat and building is complete in all respect since long time ago. On asking OC/CC builder telling that project is not completed and some more buildings to be constructed in the same project . Builder has not given me any occupancy certificate but allotment letter I already received where builder claiming service tax. Please confirm if Service tax is payable or not?
    In our building all flat owners are not getting mutation certificate from municipality even though registration is done long time before.
    Please guide me whether this flat I can buy or is there any process for cancellation the allotment?

  • I am planning to purchase a flat from an apartment at Hulimangala Panchayat, Jigani hobli, Bangalore. The plan has been approved by BDA. The constructions have been completed in December 2014, however, the builder is yet to obtain OC. I understood from some of the flat owners that the builder has made some deviations due to which the delay is happening & negotiations are under progress between the builder & the flat owners to bear the cost of obtaining OC. Is it worthy considering the flat?

  • I have purchased a flat from VBHC developers. They are saying that expected date to get OC is Feb 2017. I was thinking to start the interior work 1/2 months in advance. So that i can save time post OC is obtained.

    But the builder is saying that i cannot start interior work unless OC is obtained. Is there any law which says i cannot do that. I know i cannot occupy the flat. But doing interior work should be ok right ?

  • Hi Mr. reddy,
    I have purchased on flat in Orissa, bhubaneswar. During project inception days areas was coming under Business Dev Offier & later towards completion (Recently) area came under Bhubaneswar dev Authority. During handover & society formation I rqstd builder to rpovide OC,CC & NoC but he denied as not having all those as project was earlier coming under BDO. He only has given me the possession letter from his company (Not from any authority) & sale dead also completed with my name. Even he has created an owners Association via a notary instead proper channels like Society Registrar etc. Please suggest whether it is a heavy irregularities or not and if yes to whom I should approach for justice, It’s consumer court or petition writ or something else.
    Note- There is also a heavy deviation on delivered amenities as he promised during flat registration and at the time of delivery.

    • Dear Mishra Ji,
      All your points do reveal that lot of irregularities have happened with the project construction & compliance.
      Kindly join with other flat owners and fight for your rights. Take legal opinion too!

  • Request for your reply please:-

    -Purchased Flat in state of Haryana (Gurgaon), Sec-83 (Vatika Group)
    -Agreement Signed in 2009 wherein there is a open clause of Taxes also, we have to pay incase.
    -Possession offered to first owner in Jun’2014.
    -I have purchased in re-sale in Feb’2015 and started living. Now around 200-300 families living.
    -Occupancy Certificate also received for Project on 01st Sept’2016
    -Vat Demand Letter/Tax Invoice (of 1.05%) issued by Builder to Home Buyers (me) on 07th Nov’16 under “The Haryana Alterative Tax Compliance Scheme for Contractors, 2016”
    -Sale Deed/Registration of Flat is still to be done of all society.

    Sir, My query is, should we have to pay VAT in this case of “ready to occupy flats / OC Received Flats”?

    -If your advise is “Yes” then we shall pay VAT.
    -If your advise is “No” whom we should inform/contact- Govt. Body (Either Excise Dept/Sales Tax Dept / Lawyer /Town Planning etc.) immediately to waive off this VAT, because Sale deed cannot be done due to this VAT dues are pending.

    • Dear Kunal,
      Is it the Registration of Flat or Registration of Welfare society, which is not yet done?
      Kindly note that builders can not charge VAT on sale of Flat on a completed project. You can contact local Commercial tax dept and/or civic body.

      • Dear Sir,

        Is it the Registration of Flat or Registration of Welfare society, which is not yet done?
        Reply:- Registeration of Flat and Registration of Welfare society still not done/formed.

        Kindly note that builders can not charge VAT on sale of Flat on a completed project. You can contact local Commercial tax dept and/or civic body.
        Reply:-
        First OWNER signed the BBA (Builder Buyer Agreement) in 2009, Possession offered in Jun’2014 to First Owner.

        I have purchased in Re-sale, BBA endorsed on my name in Feb’2015. I have started living from Feb’2015

        OC received in Sep’2016.

        What to do sir, should i contact commercial tax department in Haryana at which level. Sir, What is Civic body means?
        ……

  • We have given our land for promoting and we are getting flats for our residence. Now we are owner of 11 flats out of 36 flats of our project. Flats are now ready for handover and we asked for CC before taking possession from developer. But he is not agree to provide the same and in return giving us assurance that it is not important for Panchayet area and CC will not be issued by Zilla Parishad. We are staying at Panchayet areaand our plan was sanctioned by Zilla Parishad. Please suggest the authenticity of above said statements given by promoter.

    • Dear Mr Dey,
      As far as I know the OC is not compulsory for the properties which are under the panchayat limits.
      Kindly verify if the building sanction plan is approved by the Panchayat office. I believe that they can issue a CC.

  • Dear Sir,
    I am buying a property in an under construction project. The sales staff says the OC will be issued by June 17 but the agreement mentions the possession date as on or before Dec 2018. The builder has a total of 3 buildings in this complex. The construction of third building has lagged considerably due to statutory clearances. Can he obtain 3 OC’s for each of the buildings or is it issued for the project viz complex as a whole.

    Please let me know at the earliest

  • Is there any demarcation of powers for giving the OC. Based on the cost of construction or based on the built up area.

  • Hi,

    I have one query. I have signed the Builder Buyer Agreement on 29th Jun 2016. On the same day builder got the OC. Am i liable to pay VAT in this case? Builder is saying that since booking check given date is 23rd June so i am liable to pay but my agreement date is 29th June. Please suggest.

    • Dear Prashant,
      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.

  • Hi….Want to acquire a row house in Mumbai which is 40 years old & has no OC but has approved plan, IOD, CC & BCC……Will building a 2nd floor (as the row house has extra FSI)) or carrying out modifications be a problem ????

  • Hi, kindly let me know what all documents should I ask to builder if he is not having OC. 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

    • Dear Ravi..May I know why do you want to buy a property which it does not have OC?
      Is it under Panchayat limits? Kindly take legal opinion from a local lawyer before taking final decision.

  • 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 . Also a corporate Housing society isnot yet formed till now by the builder since 2010 whenthe building was constructed..I Have aaplied for a loan for which the bank has processed the application .Please guide on the above if suitable for purchase . The owner has provide provided me the chain title document evidence for loan application, as i would be the 3rd Bowner

  • I (Mr.C) have purchased a under construction Flat on Sep-2014 in 22.3L from builder (Mr.A) by Sale Deed of 7L & Construction Agreement done with Mr.A of 15.3L ( I had taken Home Loan from SBI (20L))

    In Sale Deed, Builder’s partner (Mr.B) who is owner of plot with under construction flat taken as a seller of under construction property; in addition builder (Mr.A)’s name was included as a
    consenter representing as a working partner of Real-estate firm (with whom seller having some sale agreement done in Mar/2011)

    Mr.A & Mr.B are close relatives and doing construction business jointly. (Mr.B is big advocate by profession and owning this project site with under construction flats) while Mr.A is main working builder (possession real estate firm who does Constructor Agreement for completion of
    under construction flats with buyer)

    Presently, Flat is on my name, I am having sale deed and possession everything fine.

    Now, I am selling this flat to other buyer (Mr.D) (I have already closed my home load with SBI)

    My flat buyer (Mr.D) put flat paper in bank and applied for home loan. While in search by bank in city registrar office. They found Builder’s partner (Mr.B) (from whom I have purchased flat) had already having done another sale agreement in 2013 of this under construction flat to Builder
    (Mr.A).

    Now my flat buyer and his bank asking for registered Cancellation of this Sale Agreement done by Mr.B to Mr.A in 2013.

    As per my Buyer’s Lawyer, This is the case like one property sold to two person? Is is like that?

    Please help, I don’t know what to do.

    Builder (Both Mr.A & B) denied to do anything and not cooperating any way. Ever, not hearing and difficult to contact them since they are big builders.

    • Dear Mr Patel,
      In the first para, you have mentioned that you have bought the Flat from Mr A and in the 6th para, you have mentioned that you have bought it from Mr B????
      Is it only Sale Agreement, am I right? Kindly search for EC on the entire property and try to find out on whose name the land is?
      You may also take help of a lawyer from your side and take legal advice on this matter.

      • In first para, typo error. 1st para reproduced below :

        I (Mr.C) have purchased a under construction Flat on Sep-2014 in 22.3L from builder (Mr.B) by Sale Deed of 7L & Construction Agreement done with Mr.A of 15.3L ( I had taken Home Loan from SBI (20L))

  • Hi sreekanth,

    We are planning to buy a independent duplex house(600 sq ft).BDA approved.A khata.We planned to take sbi loan for this.

    This doesn’t have a OC and the builder/owner is insisting on not taking a sbi loan as there are more chances of rejection as the house has some percentage of deviations from actual plan.
    Kindly suggest on what we need to be careful when buying this house.

    • Dear Swati,
      If it is an independent house, OC is not required. I do own a 600 sq ft duplex house in Blr and have structural deviations when compared to approved building plan.
      May be the owner is of the opinion that SBI is a conservative lender and may not sanction you based on the plan Vs deviations. If so, you may check out with private lenders or Pvt house financing companies like LIC HFL etc.,
      Kindly note that loan eligibility is also dependent on certain other factors as well ex- your income.

  • I have purchase a flat in Vasai Maharashtra ,Building is completed but builder doesn’t have O.C. 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 . Kindly advice .

  • Hello,

    I am planning to buy a flat in 40 year old building in Mumbai. None of the society member has OC copy. Could you please advise is it mandatory to obtain OC for such an old building ? since when OC was made mandatory in Mumbai properties. Should I go ahead with the deal ?

  • Dear Sir,

    I have finalised a resale flat in Dombivali (Mumbai) area, property is constructed in 2011, but the current owner doesn’t have OC. Infact other flat owner don’t have the same. But he is saying that we have registered society & we make regular society audit, we have society account in bank etc; also saying that Some banks like IDBI, Bank of Mahrashtra, State bank of Patiyala has already sanctioned loan.
    One more thing is that the property is located in Gram Panchayat Area, so current flat owner saying that gram panchayat is not providing OC. But that village is now included in KDMC & Flat owner is paying tax to KDMC. Electricity, water supply etc are all as per govt authorities.
    So I request you to please suggest, what should I do..??

  • Thank you for this article.

    I have flat in Pune , I’m staying there 4 floor 8 flats. (no society) building.
    got possession on 2013 but still not received completion certificate.

    1) Lift is pending , if we ask builder for Lift he is denying.
    2) property tax also not paid, I asked for local officer they saying still building is not registered. If i ask them they saying builder should need to submit file to department.

    how we proceed for this, let me know whom i have to contact?

    • Dear vishal,
      Your builder has to complete the construction and has to get CC for you.
      If he is not accepting your requests, you may have to file legal case against him. Kindly consult a lawyer.

  • Dear Sir,
    My name is Hemant Vashta. I live in Thakurli, which is in Kalyan Taluka, Thane district. I have received the flat through inheritance. How can i obtain the OC from KDMC ? My society is registered. Also we have completion certificate from KDMC. We have deemed conveyance at DDR level. It is pending at collector level.Can I directly demand OC from KDMC? If yes what papers should I submit and if no then from where should I obtain OC? Our builder’s whereabouts are not known.
    Regards,
    Hemant Vashta

    • Dear Hemant,
      Have you done the mutation of property on to your name?
      You can get the OC by yourself from the local municipality. Below are the important documents to get OC;
      Copy of building sanction plan (building plan approval copy).
      Building Commencement Certificate.
      Copy of Building Completion Certificate.
      Latest Property Tax receipt etc.,

      Do inquire with other Flat owners if they have got OCs?

      • Dear Sir,

        Thanks for the quick reply, Sir. No, I have not done the mutation of property. Other flat owners too had not got the OC. In fact they don’t about it how to get it, therefore I am asking you on behalf of them. I have not done the mutation because I am waiting for the GR for the law which says that only Rs 500/- affidavit from competent court is enough to transfer the property name from the deceased to nominee. If I does the mutation process now, I will have to produce heir ship certificate, which costs around Rs. 1 lakh (Rs. 75000 stamp duty + Rs. 10,000/15,000 advocate fee.). I also wants to now is there different OC for each flat or single OC certificate for entire building?

        Regards,
        Hemant Vashta.

  • hello sreekanth,

    Excellent post, very informative. Thanks for your sterling efforts!
    I had a query: I am selling a BDA flat located in Bangalore. The sellers lawyer has requested the municipal sanction plan and the building plan. Where (and how!) would I go about obtaining these, would you know?
    Many thanks,
    Kumar

      • Hi sreekanth,

        Yes, *buyer’s* lawyer, not sellers, indeed. Sorry, my bad.
        The builder was BDA (Bangalore Development Authority) so I don’t suppose they would have a municipal sanction, would they? The BBMP center was no help on this issue…and no, the previous owner had neither this nor the blueprint of the flats. Wondering what to do…

  • Hello Sreekanth,

    I had booked a flat as an under construction project in 2009. The building was to be completed by 2012-2013. The final brick work was completed in Oct 2012. Since then majority of the painting has been done but no OC. Each time we call about it he says that he has applied for the same. However, since past one year 12 residents have made final payment and taken possession of their flats. Many have come to stay and many have rented out their premises.

    The builder is avoiding our phone calls and is not even meeting with us.

    But those residents who are illegally staying there, can they take a legal course of action against the builder. Those who have not taken possession are fewer in number.

    Most of the work of the building is complete. It is just the matter of the builder to apply for OC. He is not doing this. Please suggest what would be the next course of action. We have given a letter in writing to the builder.

    Thank you in advance.

    • Dear Ramakrishnan ..This is where we really need to feel sad.
      Some builders like these take the home buyers for granted.
      Either you can take legal action or you yourself can apply for OC along with other flat owners by visiting your nearest Local body office.

  • Respected sir,
    Why it is not necessary to get OC for row house?
    and
    Possession is the actual OC it is associated with OC,

  • I am planning to purchase a property in Kandivali West but the building does not have an OC. They have complete CC & the seller of the flat has taken loan also from ICICI Bank of this flat. My loan also has been sanctioned on this property.

    Society has filled the application for OC but still not got.

    Should I go ahead & buy this property ?

    • Dear Anish,
      As mentioned in the article, OC is an important document.
      If you are confident that the builder will get the OC for all the Flat owners then go ahead.
      However, do remember that if the builder can’t get it, you have to invest both time & money (may have to bear penalties as well if there are any structural deviations) to get the OC.
      Kindly take legal opinion too before taking the final decision. All the best!

  • Hi,

    1)
    I am planning to purchase a flat in bangalore which is almost completed (not amenities) . Anyway builder will say that he will get OC after completing all pending work which I won’t believe.
    Can I approach someone to verify things required to get OC are in place and to find out any problems in getting OC later? If so, whom to contact?

    2)How to make sure money collected for BWSSB and BESCOM are given to authorities?
    3) I will take lawyer opinion. Is there anything I need to check. ?
    4) Since builder is quoting less price compared to prices of other apartments near by areas, I am doubting…

    Thanks in advance.

  • I took possession from builder without CC, OC. and not we live 200 families. Until now builder was maintaining flat from society maintenance funds collected at the time of selling flat.

    Now, he is denied to pay any maintenance bill from maintenance funds/ from his pocket. and not giving proper deadline dates for CC/OC.

    And pressurised us to take handover of the funds and maintain property by our own.

    what should we do?

    We are located at Vadodara, Gujarat.

  • Sir,

    I have flat in ulwve I have OC with CC also but still there is no society , now builder has start the construction in ground floor & He constructed the 3 BHK for him & one BHK for sale in parking area
    should we registered the complaint against him

    • Dear Maruti..How can the builder use the Parking space for residential purposes. All the flat owners should take legal action against the builder unitedly.

  • I am planning to buy a resale flat but the owner does not Completion letter. He says event builder has not yet provided CC. I asked him about Tax receipts to which he said that since builder has not yet received the completion certificate so there is no Tax receipts (not of builder nor of owner) .
    Should I go ahead to purchase the property, I have only Paid 5000 to flat owner nothing else.
    Also my Flat owner does not have 8 A Document on his name.

  • I buy a flat in Kalyan, thane deistic, Builder has gives us Possession certificate as per bank housing loan demand, we reside in our flat, we ask builder to provide the CC but always he is saying 15 day’s, till date he has not given the CC papers, now Local Municipal people came for a survey and they are saying we will issue the demand letter to Individual flat for property tax with penalty, is this right because from builder side he has issue the possession certificate, every day we flat owners approaching to builder but he is not replying properly, Please suggest.

    • Dear Deepak ..This is the case with many property buyers. Unfortunately, the flat buyers have to bear the charges/penalty for the misdeeds of the builders.
      Suggest you to form as a group and consult a civil lawyer. You may check if it is possible to issue a notice to the builder for not issuing CC.

      • CC Means Building completion certificate, At the commencement of building construction, BMC or local authority gives commencement certificate. In that BMC or local authority must have laid down few guidelines about construction, building standard, height of tower, distance from road, water harvesting etc. It seems that your builder fails to abide norms stipulated by BMC or local authority. You must hurriedly take legal process

  • Hi,

    I have obtained housing loan for constructing Ground plus first floor from a bank and the loan amount is disbursed in stages according to the construction progress of the building. If I stop with Ground floor only, will the bank provide me completion certification?

  • Builder is applied for OCmore than two months ago, construction is completed ad per plan, due to land owner TSHB querry, OC is not provoded by GHMC_ HYD, what is the maximum time to provide OC by GHMC, if it crosses can we occupy our flats without OC, since builder is not able to convince TSHB to withdraw querry from GHMC for not to provide OC

  • Hi Sreekanth,
    Thanks for the details in your blog!
    I have concern related to flat, the property became disputed now as land owner filed a case against builder stating that land owner didnt sell the land to builder, but builder is saying that he has got the registry and all. Possession is due on flat in a month from now. But due to court case, I dont think builder will be able to furnish the OC and CC. Builder is saying he has got the CC, but he is silent about OC. I am yet to verify all these documents from him, meanwhile what should be the next step for me to do here.

    • Dear Kirti,
      That’s strange & surprising! Something fishy here. So, all these days why was the land-owner silent, when the construction has been going on??
      Suggest you to form as a group with other co-buyers and demand for OC & CC.

      • Hi Sreekanth,
        sorry for the missing information from my end in above query. We booked the flat in 2013 and got the registry done in early 2014 and by the end of 2014 the case was filed by landowner, we got to know about case early this year. Initially the plan was approved till 11 floors and during the court case he increased the two floors more so building is now 13 floors high. He is saying court didnt ask him to stop the construction so he is doing. We have formed a group with other co-buyers who have flats in that building. 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. 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. Being novice here in this area – could you please help me if I should take the possession and get something in written from him that he needs to provide OC and if he doesnt give by that time then I can go to consumer forum ? or I should hold my possession without OC.

  • There is an old flat available for sale in

    Secunderabad.

    The entrance door of the flat is different

    from the approved plan.
    i.e. The entrance door has to face towawards

    North as per the approved plan but is

    constructed facing towards East. But the

    flat size & dimensions are as per approved

    plan.

    The flat has occupancy certificate in which

    its mentioned there are some deviations

    less than 10% and a compunding fees also

    has been collected.

    Would you please clarify if this flat comes

    under BRS?

    • Dear Vinay,
      Looks fine. I am not very sure about BRS (building regul. scheme) rules that are applicable in your case. Kindly take help of a local civil lawyer / real-estate agent. (or) You may contact civic body office.

  • Hi Sreekanth,

    I visited one builder today in Gurgaon who is selling builder floors. He said that the registry is available, home loan can be availed and everything seemed to be in order, however he said that building plan / floor plan is not approved and we generally don’t take these approvals. He said this is not required in this area and they have sold lots of projects like this. Should I go ahead with the deal? May it be the case that building plan approval is not required?

  • Hello Sreenath,

    Your article is very insightful. Thank you for the same.

    I had a query regarding builder insisting to take final handover without occupation certificate. I have invested in a property in Doddanakundi Bengaluru 4 years back and builder is yet to obtain OC as of date for my block.

    Can a builder demand final payment and force me to take possession without obtaining OC? Also he is just not sending a demand note for same on his letter head.

    I have paid all demands raised by him and related form 16 for TDS. Now amount under the heading of handover is pending.

      • Hello Sreekanth,

        I have insisted.

        But builder has just sent an email with final due minus registration with a deadline. Failing which he has threatened an interest.

        What are my options as a buyer?

  • Hi Sir, I have planned to buy a flot in one apartment ( Sai Branthavan ) Bangalore k.R.puram and it’s having 32 flots with 4 floor. they are not providing occupancy certificate and they are telling it’s a small project so we are not providing and some other folts are sold out with bank loans in SBI , LIC,Icici,etc. How bank lone is provided in this case with out OC. It’s A khata land with BBMP approved one. They have got a electricity, kavari,under sewage connections with out OC. please advice how can I proceed to buy this house.

    • Dear Jayakanthan,
      Banks can give loans under the premise that OC will be obtained.
      Suggest you not to buy such properties where OC is not available.
      Mostly they might have deviated a lot when compared to building sanction plan.

  • Dear Sir: I purchased RESALE FLAT [five years old] with A-Khata Bifurcation order dt.27.1.2008, Khata Extract, Khata Certificate, and Tax Receipts of the preceding FIVE YEARS, duly verified by Advocate, who drafted my Sale Deed and got Registered on 5.4.2013. On application for Khata Transfer, B-Khata was issued, and Tax receipt as B-Khata against owner name without assigning any reason. Later on, I came to know that all the co-flat owners got B-Khata because NO CC/OC were obtained by Builder.

    What is the REMEDY. Please advise me to RESTORE A-KHATA. Already, one of the Owners, who is HIGH COURT ADVOCATE filed a case in the Karnataka High Court and the going is his favour, only judgement is yet to be delivered.

    We have formed Association, duly registered. Can Association take up the BUILDER for not obtaining CC/OC? Please advise us.

    M PRABHAKAR

    • Dear Prabhakar ..The association can take up..but whether the builder is going to pay the penalties (if any) from his pocket or not is the real question?
      As a group, you can approach local civic body and get CC and then try for A-Khata certificate(s).
      Also, take help of your lawyer friend and neighbor.

  • Hi, i am going to buy an apartment it contains 16 flats, in that 12 flats has been sold out and loan processed and legal opinion etc etc done. Since the legal opinion for rest of the flats already done and loan processed do i need to go for legal opinion again? shell i proceed for loan processing? please suggest

  • Dear Experts,

    I have just a query might be a silly query for others. I am Planning to buy a property in Bangalore (Whitefield area). It is going to be high rise building (total of 12 floors). The one which i am looking for is on 10th floor. They are about to give us after completion by March 2017.

    My query is:
    Do I, Need to ask them about the commencement certificate in order to know whether they have proper approval for 10th floor (as this is high rise building bit couscous ) and is it mandatory to have a copy of that letter.

    Thanks in advance!
    Hrishi

  • Hi, I have finalised a property in Miraraod – mumbai. Building is since 2005 and it is resale property. All documents are ready except OC. Agents tell that societyhas applied for OC and they will get in few days. Electricity, water supply etc are all as per govt authorities.

    I am confused that I must purchase the flat or wait till the society gets OC. I am really in nned to flat and can not wait till 6 months for OC. Icici, BOB, BOI, HDFC and many bank have already issued loan on the same property. So is it safe.

    Thanks for your reply in advance.

    • Dear sap ..It is safe but only thing is you may have to pay penalty in future (if any) imposed by the local civic bodies for not having OC. The builder or ex-owners may not be liable for this. So, now it is your call.

  • hi shrikant ,

    i m planning to buy a flat in veera desai road , the building was constructed in 2010 , they still doesnt have oc in their hand .
    building name – pramukh heights
    address – off veera desai , amboli hills

    what do u suggest should we go ahead with the this flat or start looking some where else ?

    • the above said building has all the other documents – like cc / blue print certificate. kindly suggest .

  • Hi sreekanth, I am planning to buy a resale flat in pune, I got a copy of CC where in flat no 101, 201, 301 not mentioned however flat no 102 103 104, 202 203 204, 302 303 304 are mentioned. And on the bottom of the certificate it mentioned 3 shops+12 flats. I am planing to buy flat no 301. Please advise if it is ok to proceed?

    • Dear Ramesh ..May be the said Flat is not as per the building sanction plan. Suggest you to avoid the deal or kindly take a legal opinion from a civil lawyer.

  • Hi Sir,

    I am negotiating with a seller for a re-sale property which has B-Khata. Could you please let me know how A-Khata or B-Khata document is related to OC/CC documents? Is it that the property should have A-Khata, and only then BDA/BBMP will give OC/CC documents?

    BR,
    Krishna.

    • Dear Krishna,
      I dont think so. OC & CC documents can be issued to the promoter if all other documents are in place & building has been constructed as per the sanction plan.

  • I have purchased full constructed duplex in Feb-2014, only garden area, parking area was not fenced, which I myself has completed after owning of house. Sell dead was referring word – Partial Constructed House, but the photo attached is supporting my previous statement. I have already started paying House tax, electricity bill since 2014. Till date, almost after more than 2 years, developer has not issued me a Completion Certificate – after many reminders. What is your recommendation for opting completion certificate from local authority?

  • Dear Sreekanth,

    I have an apartment in an under construction building in Mumbai.
    Can I change the position of the door slightly by 1 foot of the master bedroom to get little extra space,in that event my second room would loose its passage slightly?

    Can it create issues while getting the occupation certificate or can the society object to it?
    As per me it’s a minor change what is your opinion?

    Also are we allowed to demolish wall and make two bedrooms into 1 ? Will that affect occupation certificate ? Thanks in advance for your help

  • Mrs shrikant I have a flat in Mira road but the building does not have oc but blue print is there .is blue print is equivalent to oc pls reply fast

  • even though we have o.c , the Telagana state imposing deviation penalty on property tax (Alwal muncipality) ,whom to we ask about this deviation penalty. come to the facts the builder officialy went 10% deviation for that they paid Rs.6,50,000/- penalty, though the property tax authorities imposing deviation penalty in the property taxeses, how far it is justice.

  • Hi everyone,

    I recently purchased a flat from a builder in Kaggadasapura, Bangalore. We gave the contract of interior work to the builder itself and he increased the cost of interiors and asked us to pay an extra amount of Rs 50,000. 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. We wanted to give the balance amount after all the pending work has been done. He is threatening us that he will hold the final letter which he has to give to us if we do not give the balance amount now. I am not sure what this final letter is about. Can someone please help us. 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. Any help would be much appreciated.

    Thanks

  • Hi,
    I am purchasing a flat in Mumbai, Andheri (E). The building has been constructed in 1984-85. They do not have an OC. I am applying for a loan from a financial institution and they have asked for this. What the owner & agent tell me is that the building has a CC but they cannot find the blue-print of the building as the secretary has changed and no one knows where this document is. The financial institution has given me two options – Either to get the OC or CC + Blue print. As no OC available and blue-print is missing, is there any other solution to this? Please advise

  • i m planning to buy 2bhk at shubh residency Baswanagar but the property does not have cc and oc..Will it be okay to buy such property if wish to resale in near future

  • Hi,

    I have a independent house and 1 year old,Its constructed as per plan and approved license floors and only the setback one side not left and other 3 side left with limited space from compound. Do I have any issue ? and should I get it OC,CC for the same?

    its 40Feet height totally with Stilt (car parking with security room)+GF+2 Floors

    Please advice..

  • Hi,
    I am planning to purchase a flat in Bangalore. The Builder says that he has Land and individual flat A katha. He adds that OC CC is not there as it is a small property under 10000 sqft. is it true? can I buy it ?

      • Hi Sreekanth,

        I have gone through legal verification, lawyer says everything is fine since it is A katha. Is it still a good decision to buy the house.

        Thanks,
        Sreedevi

        • Dear Sreedevi ..It can be an A khata property but what if there are too many structural deviations. If so, you (flat owners) may have to shell out penalty amount in future (if akrama sakrama comes up).

  • Hello,
    I am going to buy a flat which was build and completed in 2008 and present owner is staying there. He has Khata (A) certificate and filling tax since then. But he might not know about OC or CC and he has not given to me. I talk to lawyer and asked about OC but he said this is ok – not important. There has water, electric connection and its in apartment with 150 flats are there.
    What do you think is it ok?
    Can you provide me link to check online about present owner of the flat, to cross check?

    Thanks
    Suman

    • Dear Suman,
      I don’t think there is any such online provision to know the details of a Flat owner..
      What about CC?
      OC may not be a problem now, but it is YOU who have to pay any penalties in the future if any issue arises and not the builder/previous owner.

  • I am planning to buy an apartment in Bangalore which is BBMP approved property. They already have CC available and OC will be available by end of August.
    In the total apartment cost breakup, they are charging 11.2 % for Service Tax and VAT which I felt is too high. In the other apartments nearby they are charging around 9%. On what basis do they calculate the service tax and VAT for the apartment?
    Also, as the CC is already available do we need to still pay the Service Tax and VAT? I read in some blogs that the Service tax and VAT are to be paid only for the under construction properties.
    Could you give us an insight on the how this works. Thank you

    • Dear Mithun,
      I too believe that VAT and Service Tax are not applicable for Constructed Property. It is only applicable for under construction flat.
      Also, if an apartment building has less than 12 or 12 flats, no VAT.
      VAT is a state govt subject and ST is a central govt subject. So, VAT may vary from state to state.

  • Hi Sreekanth,
    My name is Sreenath. I am planning to purchase an apartment near to kengeri.I approached a builder, he said for that building he could be able to provide OC but due to some reason he cannot provide the CC.If I purchase this wil there be any legal complications in future and will there be any problem at the time when I resell it to other.
    And they are waiting for Kaveri water connection as well.Will there be any problem in getting the connection.
    Waiting for your reply.
    Requesting to share your mobile number for further queries.

    • Dear Sreenath ..Kindly ask him what are those reasons?? Does the site comes under Panchayat limits or BBMP limits? As mentioned in the above article, there can be issues or you may have to pay penalty (for no fault of yours) and get things sorted out in the future.

  • sir my dad with is brother that is m uncle constructed a house 20 years ago. uncle live there since 18 years yet not took complition of the floor he built. my dad is the owner of that house. my uncle added his black property to construct on our house and living since then.dad wants him to take his property, but due to black money he is not and this is bothering us bcause we dont want any legal enquiries on us unnecessarily. what should we do?

  • I purchased one flat from VBHC B’lore located in their Vaibhava project near Anekal. The purchase started from June 2014.I went for it because of two reasons. 1. Mr Jerry Rao is the founder and 2. My group company Aditya Birla Money recommended it. During booking I was told that by January 2016 the flat will be allotted. Then after some time it was postponed to March 2016. But now the management says they can not give any tentative date of handover of flat as the clearances like PCB,Fire protection, OC and e-khata is handled by Govt bodies and hence the management is helpless.They informed me last week that PCB and Fire protection has been obtained and they have applied for OC. After getting OC they will be applying for e-khata and then registration will take place and I shall get the flat.
    I had planned to move into my new flat after my retirement from 01.04.2016. I had to vacate the company provided
    accommodation soon after my retirement.Now I am paying rent for accommodation as my new flat has not been given to me. Can you please let me know normally how much time it takes to get OC, e-khata and registration. The management is not willing to give me a tentative date for planning my transition from another state. Looking forward to your valuable information

      • Thanks for your response
        What I was told by the builder i.e. VBHC is they do not pay any bribe to any body so their application moves slowly in Govt. depts. Please let me know how much time it will take in its natural way with out any bribe/extra payments.
        After e-khata what else remains to be cleared so that I get possession of my flat.

        Looking forward to your reply

  • Dear Sir,
    My query is regarding the Occupancy Certificate for a Commercial building. My question is that Whether premises which are given in the Occupancy Certificate for a Restaurant, can also be used for office purposes?

    Regards
    Arjun

  • Dear Sir,
    I have bought an under construction flat which was financed by SBI in AP, I have got registered onto my name by the builder,
    The builder met with an road accident and have died,and in his firm he is the only sole owner, but he has kept his mother as nominee.

    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

    Please let guide me legally

    Thanks
    Anand

    • Dear anand..To be frank, I do not have answer to your query. Only thing I can suggest you is to consult a Civil lawyer and get advice. In case if you get right advice from a lawyer, kindly share the information here so that it can be useful to other blog readers. Thank you!

  • I stay in old Row House which has CC and OC. Now the row house has become old and requires repairs. In this connection I have approached Muncipal corporation to declare the row house as dangerous to leave. In this case can the muncipal authority cancel the O.C ?

  • This article is very useful.thanks srikanth. We are looking for a flat to buy in hyderabad. And we found a flat but the builder taken permission for g +2 and build g+3.and our flat is in 3 Rd floor. Builder says that we are already applied for brs. It will come with in few days.

    Please suggest us, is it good deal?

    And when we consult for bank loan government banks will not give. Only one private bank will give by offering bribe.

    We are confusing now? Please give us suggestion.

  • Hi Sreekanth,
    I have bought flat in area which comes under grampanchayat in Riagad district near Thane, Maharashtra.
    My builder is now asking to take possession and saying he will provide OC after 5-6 months or we can apply for it once society is formed. Our builder has all other required legal documents.
    Can you please advice, if I can take possession should wait till we get OC?
    Also just wanted to confirm if OC is applicable in grampanchayat area or only applicable for areas under municipal authorities?

    • Dear Kartavya,
      Better to get OC and then take possession. OC is generally not applicable in case of panchayat limits. You may also re-check this with a local civil lawyer.

  • Hello,

    Can a housing society be taken over by flat owners from a the promoter builder without having an OC.. the flat owners have not be made members in the already existing society (which builder is handling) but are only issued temporary residential letters since last 9 years.

  • Hi Sreekanth,

    I got the copy of CC that is given to builder by civic body. The builder issued me a Possession Certificate on his letter head; Is this enough? Do I need to get get any OC also from builder or civic body?

    -Dheeraj Chhabra

  • Dear Sreekanth,

    Thanks for such a good article.

    Today we received a tax in name of each individual Flat owner from PMC (Pune Municipal Corporation).
    None of us have received completion certificate, occupancy certificate from builder, even after asking him time to time.

    Is it legal to get a tax in individual’s name?
    Should we pay the tax?

    Please suggest, what action should we take?

    Looking forward to your help.

    Thanks,
    – Amol Chakane

    • Dear Amol,
      Kindly pay the tax dues, it can become legal issue.
      Your builder has to provide you CC (atleast).
      Suggest you form as a group (flat owners or society) and approach PMC to get OCs.

  • Hi Sir,
    1) We are buying a flat in Banglore. The owner is saying that they dont have an OC and CC. Is it safe to buy that flat but he’s saying that the apartment land belongs to A khatha. I’m in confusion state please guide me.
    2) from which year onwards this OC and CC documents are started.

    Thanks in Advance

    • Dear Jagdish,
      I do not know the year but they are important.
      Builder has to provide atleast CC. Looks like they might have completed the construction with lot of structural deviations.
      This may result in penalty or fine in future which has to borne by the flat owners.

  • Hi,

    Is it possible for a building to have OC but not BCC?
    I’m looking to buy a flat wherein the seller is saying the building does have OC, but BCC is pending.

    Is that even possible?

  • Hi
    Its a great help
    I have a doubt.. i am looking for a moderate flat in Nangalore.. i have contacted 30+ apartments but no one is giving oc… it seems apart from a few big projects, no one is giving oc.. what should i do

  • Hi,

    I have purchased a property from Mantri Developers and have done the registration in June 2015, they had promised possession by Jan 2015 and in March 2016 have given the flat for interiors, however in the meantime I have told my current house owner that I will vacate my house by April 16 end since the possession for interiors is given and hence they have found an alternate tenant who will want the house that I live in by May 1st 2016 and have issued a notice to vacte by April 30th 2016.

    Now Mantri Developers is claiming that I will not be able occupy the flat by April 2016 as they do not have the OC.

    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.

    • Dear Sridhar,
      Very sad that these kind of tricks (if at all) are played by the reputed real estate companies too.
      Suggest you to first get it in writing from the builder about the possible date of issuing OC, accordingly you can plan to vacate your rented house.
      Are you in touch with any other Flat owners?
      Occupying a Flat without OC is actually an illegal thing.

  • Hi Sreekanth

    Hope you are doing well.I had booked a flat in Wagholi,Pune which comes under Gram Panchayat.
    It’s ready for possession property and CC of building has also arrived.
    Builder is not providing the Occupancy Certificate and says that same is not getting issued from local govt. bodies.
    He also says CC and Possession letter are sufficient and there is no need of OC as such.
    I had seen the news of OC issues existing in Mumbai and had also seen that without OC,there might be future issues in re-sale of property.
    Can you kindly guide me on next step to be taken in this regard.
    Thanks
    Nikhil Soni

    • Dear Nikhil,
      As far as I know the OC is not compulsory for the properties which are under the panchayat limits. Suggest you to check this with a local civil lawyer too.

  • Hi,

    I am wanting to buy a flat in Alpine Viva Seegehalli whitefield. The builder has not yet given the OC/CC. Also the electricity connection from BESCOM is not in the name of individual flat owner. Instead the electricity meter is in the name of Alpine viva.
    1. I understand that it is not advisable to buy the flat with out OC/CC. However given the cost and budget limitation, can the RWA apply for CC/OC in future?
    2. The builder has consumed the entire IFMS (sinking fund). Can he do it?
    3. Should i get the property paper verified from an independent lawyer even when i know that OC/CC is not there so it will not be verified?

    • Dear Gaurav,
      1 – Yes, RWA can apply for OC but CC, I think its better if your builder get it for you.
      2 – I am not sure.
      3 – Highly recommended.

  • Hi,
    Shreekant ji,

    I want ask you some of my dout related to builder.

    I have given a token amount to builder for buy a new flat but some of my reason i can’t owed the flat and i asked builder to return my token amount from him,but he neglecting me and saying that i don’t have money to give you right now.
    so,please suggest what to do in this condition /situation.

    Regards
    Shivshankar.V.Malepuli

  • Hi Sreekanth,

    Very nice site.
    I am having a Question.
    I am planning to purchase a apartment in TC palya.
    Builder is having CC but he is not give OC, he is saying that he constructed Party hall & gym in last floor and balcony are extended little bit which are not as per approval plan. After registration gets completed he will proceed with convert all flats to A Khata.
    Is this possible to provide A Khata without OC.
    Please advice me on this.

    Thanks,
    Pavan.

  • Need Help
    I have a flat in apartment complex in Bellandur and earlier in 2005, all of the apartment owners received B Khata, at the time the reason was it came under Bellandur Panjayat.

    Around 2010, all of my neighboring flat owners converted to A khata, at that time i couldn’t and this got delayed until now.

    How can i get a A khata now. I have paid tax receipts until last year, My Apartment complex has Occupancy Certificate, All Land documents – Sale Deed, Conversion Order, Encumbrance certificate etc.

    Need your help to understand how i can get the A khata issued.

      • Sir,

        Thanks for your reply.
        I was told i would need to wait for Akram-Sakrma to get A Khata… Is this required, As i understand Akrama Sakrma is process to regularize. My Apartment complex is already a regularized one and all flat owner in my apartment complex have A Khata.

        Regards
        Joseph

  • Hi, I am planning to buy a apartment in bangalore without OC, builder has Possession Certificate .This is completed project in 2013. Builder told me that only 32 flats are there in apartment and area is less then 1 acre , they didn’t get the OC at that time.
    Land has BBMP approved A khata. But Flats Khata is B abstract and they are paying the tax till now. They have told me that in Akrama Sakrama this issue will get resolved. Could you please let me know, how safe it is buy this apartment?

    Around 70% of the project which I have seen in bangalore does not have OC. Apartment with OC are very expensive and not affordable for common man. Please advice. Thanks in advance.

    • Dear Subbalakshmi,
      PC is also referred to as OC. So, may I know the issue here?
      Looks like they have deviated more than what is allowed as per the building sanction plan.
      As your builder says, the end user (flat owner) has to bear the penalty for the mistakes the builder has done. If land is A Khata, looks like there may not be any legal issues but you may end up paying the penalty.
      Do take legal opinion on this.

  • Hi, i going to book. 1.5 BHk flat at panvel (wakdi village).new mumbai. I ask for builder .for all property related Documents .He gave me .Collector approved N. A Copy and gram panchayat bandkaam poorn dhakhal . i am confuesd . i think bandkaam poorn dhakila is ( completion certificate . is i am right ?. .what should i do .

      • I Booked A flat at panvel. vakadi village. I ask builder About Property documents . he tell me the property is collector approved . and The O. C is from Gram Panchayat. I want to ask is Gram Panchayat has authorise.
        to give occupation certificate at Panvel . I am very confused .what should i do .? is there any problem in future to me with gram panchayat O. C . Advice me

  • Congratulations on an excellent site.

    I have booked a flat on 8th floor of a proposed 18 storey building. The Builder has received Commencement certificate upto 15th floor. He has now erected 16th floor slab and has raised demand note for the installment due.

    Is it necessary for the builder to have commencement certificate for the said floor before he raises a demand note?

    Will the bank which provides the Housing Loan disburse the amount of the installment due without the Commencement
    Certificate?

    What should I tell the builder in case I am unable to get the load amount disbursed by the bank?

    Thanks,

    • Dear Ferrao,
      Yes, he should have CC for it and what is mentioned in the building sanction plan? Does it say it as 18 storey one or 16 story one?
      Sometimes, bankers & builders may have some understanding between them, so try to play safe. Kindly first inform your banker about this and try to find out what is their view on this??

  • Hi,
    I booked a flat in whitefield bangalore. it is almost about to complete project. G+3. Land is clear. but after booking only i came to know the Builder does not have the commencement certificate.
    But in agreement he is promising for A-Khata and OC to get it done. How is that possible?
    He is saying the commencement certificate is mandatory only from 2015 and they started the building construction from 2014 itself so it is not an issue?

    Please suggest how to go with. Or should i cancel the booking paying off him 25% of money which i have given? Totally confused.

  • Hi,

    I have purchased a plot from a private developer. The registration of the property is also done.
    Should the developer provide me a Possession certificate for my plot?

    Thanks in advance

  • Hey,
    thanks for the wonderful post.
    wanted to know that in case there are 2 joint owners of a land, then who gets the completion certificate?.

    Thanks

  • Hi Shrikant,
    First of all, the post is very informative and very good.
    My mother had purchased an under construction flat in Navi Mumbai in 2011.The building was completed in 2014 but due to some reasons the builder was not providing CC and was delaying.98 % of total amount was already paid.Now in 2016 suddenly when we called the builder he said that he has recieved CC.He has sent us an Virtual Completion certificate which is issued by some architect and planner saying that the structural work of the building has been virtually completed and is in accordance with permission granted with structural design …..The builder is saying to pay balance remaining payment of 2 % .What is difference between Virtual Completion certificate and Completion certificate ?Also the certificate is from some private architect and not from municipality or civic body?What to do ?

    • Dear pranav,
      Is the original Building sanction plan approved by any civic body? If so, your builder can get CC from civic body.
      I am not sure about virtual CC. Suggest you to kindly visit your civic body office and get details about your Apartment CC status.

  • SIR, I HAVE PURCHASED A FLAT IN SOLAPUR MAHARASHTRA IN 2013. TILL DATE NO SOCIETY HAS BEEN FORMED IN THE APARTMENT. ALL 16 FLATS HAVE BEEN OCCUPIED. TILL DATE NO CORPORATION TAX IN INDIVIDUAL NAME HAS BEEN COME. LAST YEAR CORPORATION TAX OF RS. 70000 IN THE NAME OF BUILDER HAS BEEN RECEIVED. NOW BUILDER IS COLLECTING FROM ALL OF US THIS AMOUNT. SOME OWNERS ARE PAYING, AND SOME OTHER NOT. HE HAS PAID ONLY RS 35000 OUT OF RS 70000 THIS YEAR. STILL SOME AMOUNT IS REMAINING. SIR PLEASE TELL ME WHETHER I CAN APPLY INDIVIDUAL CORPORATION TAX PAYMENT FROM COMING APRIL ONWARD OR NOT. WE ALSO DON’T KNOW WHETHER THE BUILDER HAS OBTAINED THE COMPLETION CERTIFICAT OR NOT, AND HE IS NOT HELPING IN ANY WAY. sale deed has also been done of mine in 2013.

    • Dear SUNANDA,
      Suggest you to approach your local civic body (Solapur Municipal corporation) and check with them if you can apply for individual OC.
      Kindly find out if your builder has applied and received any CC from them.
      Accordingly, you may then convince the other flat owners to take the required action .

  • I have booked an apartment two days back in Bangalore. The Area is coming under Anekal Planning Authority.
    I am verifying the legal documents shared by the builder.

    The Building is G+3 floor and ready for posession.

    The Plan is sanctioned by BMRDA. And E-khata is available for the land and individual flats.

    But when I asked about the Occupancy Certificate, Builder is telling that there is 15% deviation from the approved plan, so they cannot get OC.

    They are telling that this area is under panchayat so that OC is not mandatory and they have done 15 projects for none of them they provided OC. Also it is G+3 floors only. Only if 8 ,9 floors and above OC is mandatory.

    I checked with some other builders also in this area and found that many do not have OC.

    I also contacted Annekal Planning Authority (BMRDA) regarding this. So they are telling it is ok for buying this apartment as plan is approved. And they are telling BMRDA do not issue OC only CC they will issue.
    Regarding OC, Akrama Sakrama is under High Court, so after decision also may be you have to pay some penalty for regularization.

    Could you please advise me on this matter. Whether I should proceed buying this apartment.

    • Dear Jeswin,
      Yes, most of the apartments under Panchayat limits do not have OCs.
      But it is very clear that project has structural deviations compared to the sanction plan and hence they do not get OC.
      Also it is clear that end user (you) have to bear the regularization expenses (penalty) when akrama/sakrama scheme comes up.
      So, you may now take the call. Did you receive any suggestions from your legal expert?

  • Hey Sreekanth,

    I am from Hyderabad, kondapur. I am about to buy a 2 bhk ready to occupy apartment. Few people already occupied it, and they got loans from HDFC & ICICI. They dint get OC certificate. I am about to buy 302, which is in mortgage they said. They said that in every apartment, there will be one flat , which will be in mortgage, which will be released once every flat is occupied, then GHMC people will come and check whether apartment is build properly, then they issue OC cert.

    I would like to know,
    – What things do I consider in this situation before buy?
    – What documents should I check (or shall I go through with an advocate ) ?
    – When should my registration be done, should I wait till they get OC ?
    – Is HDFC, ICICI are trusty banks, coz, I heard, they don’t look much about legal docs, compared with SBi, LIC ?
    – Is it possible to take Home Loan more than 80 % by showing more base price, which includes furniture work?

    Please don’t get irritated with my questions, I know that you are they only guy who can answer in a simple manner. Please help.

    I have been following your blog and got very good knowledge in various financial terms, I would like to say thanks.

    I am a web developer, I can help you in moderating your portal if you want.

    Thanks
    Avinash
    avi.adlraj@gmail.com
    9666472009.

    • Dear Avinash,
      1 – The flat shortlisted by has home loan attached to it?? Who is the borrower?
      2 – Always advisable to take legal expert opinion before make home purchase.
      3 – If possible wait till you get OC and then register.
      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.

      • Dear Sreekanth,
        Just two days back I have booked an apartment with one of the prestigious builder in Bangalore.
        They have provided me the full set of documents for legal verification.

        The apartment is ready for possession. It is Joint development agreement.

        The Plan is Sanctioned by BMRDA (Annekal Planning Authority)
        But the builder is telling that there is 15% deviation from the plan, so they cannot provide OC (Occupancy 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. They also telling that they have done 15 projects so far and for none of them they have given OC.

        They are providing following documents,
        – Joint Development Agreement
        – Possesion Letter
        – E – Khata
        – Plan Sanction Approval from BMRDA
        – SBI and all other banks are providing Home loan also

        Now I am in doubt, whether I should Proceed with Buying the apartment? Please Advise.

        • I also Contacted BMRDA office, they are telling that they will issue only Completion Certificate, only that is mandatory. Also they say only if some one complaints OC will be of issue. And majority of the apartments do not have OC.

          Also he is telling, Akrama Sakrama now is pending in High Court, and even if rule comes may be the owner need to pay fine for regularization and then you can get OC.

          Please advise me.

  • Hi ,
    I am looking fir flat in white field area bangalore. My builder says he doesn’t have commencement certificate he has 14 % deviation but he will give akhata. Since it has 14% deviation it cnt get oc but he is saying he will get akhat. So ist ok if we go for those flats. Or wht will be the problm inf future . If panelty than how much it would be

  • Hey all,

    Please help me on my query, I have taken possession of flat 1 Year ago, Society is formed and OC is given. The OC that we have received issued by gram panchayat as the area does not come under municipal authorities.

    When we ask builder he says that the grampanchayat OC will do, We do not know how far that is true.

    I have blindly took flat because the project was approved by few major financial banks.

    If anything goes wrong in future, It is a bank that’s gonna suffer then on what bases they issue loans.

    Also discussed the OC and CC issue with society and they are even more confused on it.

    One last : What if a building does not have OC and CC but all flats are sold and builder ran away they how we would get it regularise, any know case you have…..

    Thank you for being helpful.

    • Dear Shyam,
      If the property is in Gram Panchayat limits, their OC can be considered as a valid one. Kindly check if the building sanction plan is also approved by gram panchayat.
      The sufferers would be the Flat owners. There are plenty of cases where flat owners had to play hefty penalties to regularize their properties.

  • Dear Sir,
    I have registered the property by paying 20% amount and rest I have taken loan from HDFC bank. It is under construction phase and I am paying Pre-EMI. As i got loan from reputed bank so not checked through legal advisor.
    Now i got to know that builder has not given OC to the owner of the last project he constructed near by location. Still 15% amount is yet to pay but I am worried now.Could u pls advice/suggest me…

      • Thank for the suggestion. 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 .
        As 15% is yet to pay like development charges ,possession etc…Shall I stop giving payment or keep a portion of it for safer side something like that..and say that I will pay the rest after OC..Is this possible I can do…this way.. or shall I pay the rest of amount..and then I asked for OC…as in this case I m worried he may give or may not give once he received all payments…? Or if anything else you can suggest ?
        Thanks in advance.

        • Dear Kamlesh,
          The payments are dependent on the terms & conditions that both of you have agreed upon (in sale agreement). If it is possible to do so, you may make the final payment later on.

          • Thanks alot for your suggestion.
            One question -I have purchased 1 bhk of built up area 615 sq ft. but in agreement it is 39.57 sq m =426 sq ft built up area.I have done registration and HDFC home loan is also sanctioned.When asked about this difference he saying we have to show 20 to 25% less as per the government guidelines.Also he say we have offered same to all 1 bhk buyers.My property comes under gram panchayat. Is this difference normal…? Or it may be an issue ..
            Could you please suggest something ? Thanks in advance.

                  • I have paid for 4500*615 sq.ft but it is 425 sq.ft on agreement.He has offered same to 1 bhk buyers .He told me to check it and confirm from the government registration site fo any doubt .So i have checked on e search government registration portal with details of recent buyers and I have found it he has provided same to all buyers.I dnt know y it is so ?

                    • 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. Something fishy??

                    • Yes Correct even I have doubt so asking…
                      Why Nationalised bank like ICICI and HDFC have sanctioned loan then if it is not appropriate….
                      When asked he told me that we have to show less on agreement paper as per some government guidelines and its been given to all buyers as follows:
                      Actual and on paper-
                      For 1 BHK(615) = 39.57 sq m =426 sq ft.
                      For 1 BHK(625) = 39.91 sq m =430 sq ft.
                      For 1.5BHK(775)= 46.71 sq m=503 sq ft

                      Do I need to worry on this or it is OK as project is sanctioned also by nationalised bank.Do I will face any issue in future while selling or demolition or something like that or it is Ok .Could you help or suggest on this will be helpful to me.
                      Thanks in advance.

                    • Dear Kamlesh,
                      Personally if I am buying a property and I pay X amount to possess a 1400sq ft flat, I prefer to have the same measurement in the Sale deed.
                      Anayways, you have already bought the flat and nothing else can be done now.
                      Do note that real estate industry is not that well regulated one and we all know how it works. Just because a bank has approved a housing project does not mean that everything can be perfect with the project. We need to do our own compliance check before buying or signing the sale deed.
                      You may consult a civil lawyer for more details on this issue.

                    • Hello,
                      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. Need to know Gram Panchayat OC is OK and a valid one ? Wll it create any problem/issue in future ?
                      Regards
                      Kamlesh Y

  • Our apartment is located outside of Municipal area and it is under panchayat area. Our apartment builder is stating that, completion certificate and occupancy certificate are not applicable for apartments under panchayat control. Is it true. Please inform.

    • Dear Sam,
      Practically, Completion Certificate does not matter much in a gram panchayat. However Completion certificate being a document that certifies that the building has been completed as per plan approved and safe to be possessed.Therefore you should insist on getting it.

      If the Sanction plan and license issued by the gram panchayath then they have the authority to issue completion certificate, but as per my knowledge i have little bit doubtful whether the panchayath has authority to issue sanction plan and license.

      As per law the completion certificate can be issued by the authority only when if the builder has constructed the property as per sanction plan and if there is any deviation then they can’t issue the sanction plan.

  • I really appriciate the way you are helping the customer on the right path for buying a property.

    Am going to finalize a 2 bhk appartment from DS Max property in Gunjur palaya road, its a OC , CC project,they have obtained CC certificate, the cost comes around 36 lac, where there are few Land owner flats are available where they are offering with lesser cost compare to builder ( 32 lac ).

    Note :That land belongs to Land lord & the sale deed is between the land lord & builder only.

    Since land owner flat is cheaper than builders price am interrest to buy a property there.

    Since they are offering at lesser price i have an doubt whether any problem comes & what could be the pros & cons behind that. Kindly guide me .

    • Dear Girithara,
      Based on the joint-venture agreement between land owner & builder, the no of flats are divdided among them.
      So, the land owners have the freedom to sell/market their flats on their own pricing terms.
      Kindly check a copy of JV agreement, OC,land title dead, local civic body approvals, building plan etc.,
      Also, get a legal opinion on this property. All the best!

  • Dear Sreekanth,

    We have purchased a Flat and formed the association. The Builder has not given any CC or OC.
    But we have individual Electric and Water connection (How he got it, we don’t know).
    The building has some violation as per commencement certificate. Now, how to get the CC & OC.
    How we have to approach the builder ?
    What should we do if he is not taking up the regularization. I know many people whose conditions are similar.
    Unfortunately I was not aware of the documents to check before buying an apartment. Now I don’t know what to do

    • Dear Anikethan,
      Your builder has to apply for CC (construction completion certificate) with the local civic body after which you through your society as a group can approach the civic body and apply for PCs.

  • I booked a flat in April 2012 and registration was done in June 2012. My flat is part of Phase 1 of a special township upto Phase 5. Phase 1 possession was promised in Dec 2013 but still it is going on. Our agreement listed a long list of amenities and also a clause that it will be completed within 3 yrs.

    As of now, builder has started asking people to take possession by paying last disbursement and maintenance fund. And he is providing No Dues and Provisional possession letter in return. Few people have paid the full amount and occupied their flat.

    1) Can we get tax exemption on the basis of No Dues and Provisional possession letter?

    2) My understanding is we can get tax exemption only if we obtain Occupancy certificate or completion certificate which I believe is provided by Muncipal Authorities. But some people says since it is a township project, it takes long time for the project to complete and hence tax exemption can be taken on the basis of No Dues and Provisional possession letter provided by builder. Can you please clarify?

    3) Assuming we take possession of flat along with No Dues and Provisional possession letter, can we rent the apartment?

    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.

    Thank you in advance.

    • Dear Vicky,
      1 – Is the ‘letter’ issued by your builder or any civic body?
      2 – I am not sure about this and you may check with your employer if they accept this letter as a valid doc.
      3 – You can rent.
      Suggest you to become the member of Residents Welfare Association society (if formed) and as a group try to get PC from your builder at the earliest.

  • Hi … The 1st paragraph of your artcile says: Occupancy Certificate is also known as Possession Certificate (PC).
    Does Possession Letter also means possesion certificate or Occupancy Certificate?

    Our builer has said after full payment posession letter will be given.

  • Hi Sreekanth ,

    Does apartment built on BDA ‘A’ khata site need OC ? The aprtments are constructed using 2 60-40 BDA A khata sites .The builder has CC and has completed 70% of this project comprising of 14 apts . When we asked about the OC he said all their completed projects are using 60 -40 sites combining together or alone and they till date of their 25 yrs of experience did not issue any OC for their completed projects . He says this building is within the violation norms and is according to the master plan . SO the question is does these flat need an OC ?

  • Hi Mr. Reddy,

    First of all I would like to thank you for taking initiative and guiding people on such critical and sensitive matter.
    I am buying a ready possession flat in Wagholi area ( Pune) comes under gram panchayat ( non PMC area). I have already paid the token money for the same. Now I have a few questions and seek clarification from you.

    1. Which are those necessary documents which could be asked from the builder? Few wings are already occupied, and few are under construction. We are contemplating the one which is ready possession.
    2. We had asked for the OC, we were told that it is not required and only CC is required which has already been received. Can this be correct? Are you familiar with any such cases where OC is not needed?

    Regards,
    A.K. Bagga

    • Dear Ashok,
      1 – You may ask for copies of building plan approval, construction completion certificate, possession certificate, approvals from Electricity/sanitary/water boards etc., If it is a joint development project then you may ask for copy of agreement doc.
      2 – OC is required. You may check with other flat owners (who have already occupied the flats).

  • Hi,
    Thank you for helping out people here. It’s really a nice work.

    I have also few questions which came to into mind after meeting several builders.

    1. Builders do not have cc nor oc and they are promising that their flat be transfered to A Khara, only have BBMP approval, water , electric in flats
    Is it possible to get A khaya?

    2 .it will great if you can share some checklist when a person has to buy BBMP Approved underconstruction & Ready to move

    3. Check list when person is going to buy BDA approved under construction & Ready to move .

    Thanks in advance,
    Kumar

    • Dear Kumar,
      1 – What is Khaya? They should get cc & issue OC to all the Flat owners.
      2 & 3 – Basic documents are;
      * Title deed
      * EC
      * Joint development agreement copy (if any)
      * Building plan approval
      * Make sure that the building is constructed as per the plan and no construction over and above license is being done. etc.,
      Kindly visit this link for more details.

      • Thank you for reply.

        Sorry it was typo , Khaya , Khara refers to Khata means i was trying to refer A Khata.

        Coming back to my 1st question:-

        >> Their Land is A Khata and Legal
        >> But builder do not have Commencement Certificate nor occupancy certificate
        >> They have BBMP approval and people are staying from March 2015 itself and paying their own electric bill and water bills , NOC from Fire extinguishers
        >> Builder is telling , flat will be transferred to you as A khata .

        My question ;- is it possible to have flat as A Khata without certificate ? shall i go for it as per your opinion ?

        about my 3rd question,

        I met a builder who has BDA approved for G+4 for 150 flats and has commencement certificate but he is telling i will not provide OC . it’s ready to occupy and more than 50 families are staying there.

        so is it good to buy from this type builders ?

        • Dear Kumar,
          This is a clear case of ANYTHING is possible here in our country 🙂
          Oh god! Even without having ‘commencement certificate’ how can they sell the flats. Big risk!

          Second option is also risky. If I am in your position, I will ignore both the options (definitely the first one).

            • Hi Sreekanth ,

              I have found one builder in Bangalore, G+3 , 140 flats, all basic amenities and with CC
              In discussion with lawyer , Lawyer has below question for me & builder

              (1) BBMP approval plan is english , Lawyer says it should be always in Kanada …Is it required in Kanada or English is also OK ?

              (2) Builder do not have any Copies of No Objection Certificates …..builder says building is G+3 then why NOC from fire , pollution , KEB
              Builder says we will be applying for OC and will provide you and he has provided OC for his previous projects

              What you say , shall i go for it ?

              Your quick feedback will be really helpful

              • Dear Kumar,
                1 – Whatever plans i have seen they are all in Kannada only. But I am not very sure about it. Your lawyer might be correct.
                2 – If he gets OC then its fine.
                Do consider your legal expert opinion too.

                • Thanks SreeKanth,

                  My lawyer is telling go ahead only when they give written in sale agreement that they will provide OC .

                  But builder is refusing to give written clause in sale agreement but they can give it letterhead

                  My question is giving in writing in letter head really helps or i leave this deal ?

  • dear sir
    i have been staying in new flat for a year now but the builder did not give the occupancy certificate can i send him a notice from advocate

  • We are not getting OC from builder, he started and completed maintainence as well for a year.

    Most of people got loan from Sbi and lichfl, for this building. Aren’t bank check before processing loan for these building as they are taking charges for it.

    What could be the best option to come out from building?

    • Dear Vijay,
      Yes banks have to check..but as I mentioned in the article, biggies may escape, the buyer(s) of the property may have to bear the brunt of all the misdeeds. Did builder get Completion Certificate? Have you formed Residents’ association?

  • Hi Shikanth,

    Our builder not supporting in any way to get the OC / Kahata , he claim the property is violated by all possible ways as we know our apartment has deviation in form of set backs and builder also claims we wont get Kahta/OC/ what should be the better way to g0 ahead do we need to go legally or approach consumer forum.

    Sandeep

    • Dear Sandeep,
      Surprising to know that your builder is agreeing that all sorts of possible deviations have been committed while constructing the building.
      If you were aware of these, why did you buy this property? Did you take legal option before buying it or took any home loan on it?
      Did you form any Residents’ welfare association?

      • Hi,

        Initially he informed that it 25% deviation and later we come to know that he had constructed 1 BHK flat and he is treating it as pent house .

        When i had mentioned about deviation it all about set back’s . We are in process of registering the association.

        Sandeep

  • Dear Sir,

    We had received OC from the Builder, but as some flat are pending for sale the builder is not forming society and also charging high maintaince charges without any details being provided.

    Please guide us

    Chetan

  • Dear champion.

    It is very informative. Thanks a lot. Let me after my builder now.

    Regards
    Stalin

  • Thanks for the informative post Sreekanth.

    Which Latest Tax receipt has to be submitted for obtaining Occupancy Certificate? The one the buyer files ITR?

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