• Can villas be handed over without occupancy certificate

Hi, I have paid token amount and booked and villa in whitefield bangalore. Its underconstruction and we are stuck at the sale agreement. the builder has put clause in the agreement which goes against the model agreement format by rera.
1) Possession has to be taken without OC when the builder deems the property to be inhabitable by humans.
2) The maintenance starts as soon as the above mentioned possession happens. it also states that amenities might or might not be completed by that time.

My question is: isn't it illegal to give possession without OC and to occupy a property without OC, can builders force you to sign on such clauses even if it contradicts rera.
2) can maintenance be demanded just on the basis that majority of the villas have been occupied without OC
3) 5% balance of the total saleprice needs to be paid at the time of sale deed/registration or possession whichever is earlier, in this case shouldnt the 5% deferred till possession is provided along with OC?
Asked 3 years ago in Property Law
Religion: Hindu

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8 Answers

Builder cannot deliver possession of villa unless OC is issued by muncipal corporation 

 

2) further maintenance would be payable only after you have taken possession of villa 

 

3) merely because majority of villa owners have taken possession without OC does not imply that builder should charge other villa owners who have not taken possession as no OC has been issued 

 

 

Ajay Sethi
Advocate, Mumbai
97703 Answers
7913 Consultations

There's no necessity to take possession without the builder procuring OC from competent authority. 

This type of lopsided agreement is not only invalid but also illegal. 

You can refuse to accept possession without OC.

The builder should not be allowed to take you for granted. 

You can cancel the booking if this agreement was made to be signed after obtaining booking amount from you. 

T Kalaiselvan
Advocate, Vellore
87905 Answers
2368 Consultations

- Occupancy Certificate evidences the completion of the building as per the approved plan and compliance of local laws.

- If the builder is unable to obtain the occupancy certificate, it means that the builder has violated building law or deviated from Construction Plan, and further it is illegal to occupy in a building or apartment that doesn’t have an occupancy certificate.

- Further, It is illegal to occupy in a Villa or apartment that doesn’t have an occupancy certificate. Buildings without OCs are not given a water connection and are charged a higher property tax.

- Hence, in the absence of an Occupancy Letter, you should not accept the possession letter from the builder.

- Further, you should not pay the full amount before handing over the OC to you. 

- Further, as per RERA,, A builder cannot give possession to buyers without OC

- Hence, if the builder fails to give or obtain OC, then you should lodge your complaint before RERA.

- Further, you can also file your complaint before the Consumer court on the ground of deficiency of services, and to claim compensation as well. 

Mohammed Shahzad
Advocate, Delhi
14832 Answers
225 Consultations

1. Yes both are illegal

2. No. But if you take possession you will be bound to give maintenance

3. Yes. 

 

Prashant Nayak
Advocate, Mumbai
33005 Answers
212 Consultations

Such Builders are good for nothing. 

if Builder is confirming that he will not take OC that means there is some problem in project. 

 

 

1 - Possession with OC is illegal and should not be taken without OC. 

2 - Maintenance should start after possession but without amenities that means such builder is going to complete amenities from maintenance only or will not complete at all. 

 

Such agreement is illegal. 

2 - If others are jumping in well then also it is not legal to jump behind them. 

3 - Should be after possession only

 

Ankur Goel
Advocate, Bangalore
454 Answers

Builder cannot force you to take possession before the occupancy certificate has been issued by the competent authorities.

If the builder forces you to take the possession without OC, you can file a complaint against him in rera or consumer court.

Payment of maintenance charges of the society can only start once the OC has been received as well as all the required amenities as promised are functional. There is no need to make any payment before that and the said fact also needs to be intimated in your complaint.

 

Siddharth Jain
Advocate, New Delhi
6391 Answers
102 Consultations

1. without OC, possession is illegal

2. even if you have signed the contract it will not be binding on you as it is merely a blanket consent having no force of law

3. maintenance cannot be demanded without OC

4. 5% to be paid ideally at the time of handover of possession with OC. However the builder can change the payment milestone and that would bind the purchaser 

Yusuf Rampurawala
Advocate, Mumbai
7780 Answers
79 Consultations

Dear Sir

You cannot take possession without an OC, as it is illegal.

You need to start paying maintenance only after legally taking occupation.

Thank you 

Anik Miu
Advocate, Bangalore
10444 Answers
121 Consultations

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