Hi, though the land is A-Katha but there is a deviation in the plan your apartment will not get A-Katha. It would become B-Katha property. Further it is a resale property and if you want to resale in future then you will find difficulty.
I am planning to purchase a resale apartment in Bangalore. The apartment is built on a BDA allotted land. Other property documents seem to be in order based on initial legal review. However there is no OC/CC since builder has deviated and built 2 additional floors. Seller has taken loan from SBI. The property I am looking at is part of the sanctioned floor. A Khata has been issued for the apartment. PID No. has been allotted. I was told by the SBI Loan officer that since this was a BDA allotted land therefore via special provision A Khata was allotted for the apartment. 1) Is the above statement correct that for BDA property A Khata has been provided even without OC/CC? 2) What is the risk in this case if A Khata is available but no OC/CC thanks
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Hi, though the land is A-Katha but there is a deviation in the plan your apartment will not get A-Katha. It would become B-Katha property. Further it is a resale property and if you want to resale in future then you will find difficulty.
If there is no OC / CC then unauthorised construction cna be demolished
2) you should not purchase flat in building which does not have OC
1. You may verify the genuineness of the A khata issued to this apartment by which you will come to know about any fraud played by builder to forge or fake the A khata or it has been genuinely issued by the authority concerned.
2. If there is no OC then there are various risks.
An OC certifies that the construction of the building has complied with the approved plans. It is issued by local municipal authorities or the building proposal department once the building has been completed and is ready to be occupied. Simply put, without an OC, your building has not been awarded a ‘pass certificate’.
Why is OC important? OC is an essential legal document that has to be obtained by the builder once the construction is complete. This ensures that the building has been constructed in a completely legal way adhering to the approved plan. Besides, the OC gives the buyer the license to apply for Khata.
Therefore A khata can be obtained only after the OC has been obtained.
Well, to answer it simply, no occupancy certificate means that the building has not been given a “Pass Certificate” by the concerned authority. As such, it does not have all the mandatory infrastructure or clearances that make the building inhabitable.
However in Bangalore presently, OC is not mandatory for registering the property. But, the khata for the property will not be issued unless the building has the OC. OC is issued under the provisions of by-law 5.6 and 5.7 of the BBMP (Bruhat Bangalore Mahanagara Palike) Building By-Laws 2003.
Dear Sir,
In purchase of every real-estate property they will be some risk but in the proposed property there is only 10% risk because most of the properties in Bengaluru are without OC/CC.
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PURCHASE APARTMENT WITHOUT O.C
Dear Sir,
You may purchase it, because of following reasons, there will be no risk. Believe me.
According to reliable sources, about 10,000 residential buildings in the city, after the Karnataka government introduced the Transfer of Development Rights (TDR) in 2005, do not have OCs. Among these, 50 per cent are apartments. Another alarming fact is that only 97 high-rise buildings have obtained OCs between 2009 and 2014. As per this statistic, hundreds of buildings in the city are being occupied without being issued an OC. However, what is startling is that most of this is done with the knowledge of the BBMP which collects property tax from such property owners inspite of them not possessing an OC. This amounts to a direct violation of Section 5.7 of the Bangalore Municipal Building Bye-law of 2003.
Living in a flat without occupancy certificate? You may lose power
BENGALURU: Rajini Chengappa, 58, and husband Vivek, 65, bought a flat in Kodigehalli, off Hebbal, in 2012. They moved into the sixth-floor flat a year later.
The builder, Vivek says, had promised them an occupancy certificate (OC), but it has remained a promise. The Chengappas are not alone in their plight. Thousands of homeowners are facing a similar quandary. Nearly 10,000 buildings in Bengaluru, including 50% of apartments built after the Karnataka government introduced transfer of development rights (TDR) in the city in 2005, do not have OCs, say official sources.
In many cases, though the building plans are approved, OCs are denied due to other violations. Obtaining an OC is a requirement under the Karnataka Apartment Ownership Act, 1972. The law says one cannot legally move into a building unless the developer gets an occupancy certificate from the BBMP or BDA. The corporation can ask apartment owners to leave such illegally occupied flats or impose heavy penalties.
Replying to a question at the recent Belagavi assembly session, chief minister Siddaramaiah had said only 97 highrises in Bengaluru have obtained OCs between 2009 and 2014, while promising stern action against builders violating construction norms.
Energy minister DK Shiva Kumar echoed similar views and directed officials to get tough with apartmnt builders, by disconnecting power.
But it's not as easy as it seems, considering the quantum of violations, nexus between civic officials and builders and a lack of stringent laws. Many errant builders and developers have, over the years, gone scot-free, say those familiar with the working of the sector.
There are several examples of builders disappearing without giving OCs and legal water connections to housing complexes. Apprehensive of losing their homes, buyers who've invested hard-earned money move into their flats and make do with water from pumps and water tankers.
BOOM FUELLED GRAFT
So why are such illegal buildings mushrooming in Bengaluru? Urban expert V Ravichander attributes it to a breakdown of the system and lack of transparency. "There was a good system in place a decade ago. Following a real estate boom, unscrupulous builders began construction without approved plans, in an effort to increase profits. This not only broke down the system, but also fuelled corruption."
The bigger problem, says RTI activist BM Shivakumar, is that in the absence of well laid-down regulations, a person can get into the real estate business and start construction of a project without approvals or environmental clearances. "Why blame private builders? Many BDA flats owners have not got OCs after due to failure to obtain environmental clearance,'' he alleged. Some experts and activists, however, expect such malpractices will be curtailed after the Real Estate (Regulation and Development) Bill 2013, is implemented. They believe it will rein in the strong builder lobby, even if it cannot control it completely.
Ravichander favours a retrospective and comprehensive policy to regularize buildings without OCs.
Architect G Ramesh says occupants must be allowed to approach the BBMP and BDA and apply for OCs after paying a certain compensation. The corporation must facilitate the process, he added.
ISSUE NEEDS A RELOOK
This needs proper and scientific analysis. Members of the Association get occupancy certificates, as required by the Act. There are many outside the purview of the Association and perhaps many who haven't got the required certificate. The classification of highrise itself needs a complete relook. There are multiple agencies involved in sanctioning OCs, and perhaps the figure quoted is of a particular authority. Buildings that have OCs are many more, since it isn't possible to get various agency clearances and connections without OCs.
THE KARNATAKA MUNICIPAL CORPORATIONS ACT, 1976.
A completion certification is an important and mandatory legal document attesting to the fact that a new building has been constructed and completed according to all the safety norms and regulations of the Buildings Act. A mandatory no-objection certificate issued by the local development and municipal authorities, the completion certificate of any building in Karnataka proves that the building has been approved by the Bangalore Development Authority, as per the stipulations in the Karnataka Town and Planning Act (1961) and the Bangalore Development Authority Act (1976).
Contents of a Completion Certificate
The certificate should contain all the required details, including the identification of the land, the location, if the building has met all the standards of safety and regulation, the distance from the road, distance from surrounding buildings, height and other criteria set by the Municipal authorities, along with the building plan. In short, the completion certificate guarantees that the building has not violated any rule in that locality. The Apartment Ownership Acts in various states in India make it compulsory for an owner or builder to possess a completion certificate, in order to avail of basic amenities like water and electricity.
In case of a builder or a developer, it is mandatory that they give a copy of the completion certificate to a person purchasing the house.
How is a completion certificate awarded?
Once the project is completed, the local authority inspects the premise on the basis of the building plan and awards the completion certificate, provided it is satisfied. The builder then applies to the departments yet again along with a copy of the completion certificate to get water, electricity connection and other basic amenities for the project.
Provisional and final completion certificates
A provisional or temporary completion is usually awarded to a builder if they want to hand over an apartment to residents but still have pending work to complete, such as finishing construction of amenities like the club house or painting. The provisional certificate expires after six months and should be followed by the builder applying for the final completion certificate.
Why is it important to have a final completion certificate?
A final completion certificate is awarded after the construction of a house is complete or if a group housing or apartment society is formed. It is a mandatory legal testimony to the fact that the builder has not violated any building rules and standards such as the floor area ratio limit, structural design, distance from road, quality of construction, distance from surrounding buildings, height of the building, number of floors and other criteria, along with an attested and approved building plan. This certificate is needed for an apartment or building to receive basic facilities such as electricity and water. In fact, the water rate is converted from non-domestic to domestic only after receiving a completion certificate. A buyer should not get possession of a house or building without a completion certificate, which also sets into motion other compulsories such as the payment of property tax and housing loans.
What if a completion certificate is not awarded?
If the developer has not been awarded a certificate of completion, buyers can either approach the local municipal authorities to award the completion certificate or can form a resident’s welfare association to speed up the process. In case new properties operate without completion certificates, residents are threatened to be evicted and the city engineering department will penalise the properties for not paying property tax.
Many people are unaware that a completion certificate is crucial to procure, before finishing payment of a final instalment in terms of purchasing a property. Builders tend to persuade hapless people into buying a property without possessing the appropriate legal documents. Hence, it is important to press for the builder to acquire a completion certificate, before releasing the final payment to the same. A completion certificate is also required to ensure that safety norms such as codes in the case of fires, accidents and other criteria are met.