Don t purchase flat as no OC is issued
2) you will have problems in resale as no bank will sanction loan .
Can we buy 3rd floor 6 years flat without occupancy certificate
Sir one building in prime area of Hyderabad city. Plot area is 739 square yards. They were constructed silt + cellar + 5 floors. Each floor having 2 flats 2200 sft 2300 sft only. Actually they have the permission to build cellar + 4 floors only. They were constructed 5 th floor and paid BRS charges for that. But BRS matter is in The Honorable telangana high court. Now shall we buy 3rd floor 2200 sft flat (resale).they are paying property taxes. Now HDFC BANK refused to sanction the housing loan due to NO OCCUPANCY CERTIFICATE. shall we buy this 3rd floor property with our own funds. Is there any legal issue to buy this property. LAND of the building is 100 % legal property.
Asked 2 months ago in Property Law
Religion: Hindu
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5 Answers
Dear Client,
An occupancy certificate is a crucial document that certifies a building's compliance with building codes and safety norms. It is issued by the local municipal authority. Without an OC, the building is technically considered unauthorized, and there can be significant legal and safety implications. The Building Regularization Scheme (BRS) allows for the regularization of unauthorized constructions by paying certain charges. However, as you mentioned, the BRS matter is pending in the Telangana High Court. This means the legality of the 5th floor and any construction regularized under BRS is uncertain until the court gives a verdict. Buying a flat without an OC means you have limited legal protection if the municipality decides to take action against the unauthorized construction. Also future resale of the property may be difficult, as potential buyers might face the same issues with financing and legal compliance. Proceeding with the purchase without an OC is generally not advisable, especially when reputable institutions like HDFC Bank are refusing loans due to these issues. Consider waiting until there is a clear legal resolution regarding the BRS matter in the High Court or Look for properties that have the necessary legal clearances, including an occupancy certificate. Should you require any further clarification, please do not hesitate to contact us.
The reason why an OC is so important is because it is the final approval given to builders before home buyers can move into their newly-constructed flats, legally.
Across the country, this certification is essential for developers to register housing units in the names of home-owners.
If you decide to buy a flat without an O.C., it can cause a number of problems, including difficulty getting a home loan, difficulty getting insurance, and difficulty selling the property in the future.
Additionally, you may be subject to fines or penalties for buying or occupying a property that does not have an O.C.
It is not advisable to purchase the flat without the occupancy certificate issued by the competent authority. More so, when you wish to buy it with your own funds!
- 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 building 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.
- Further, as per RERA,, A builder cannot give possession to buyers without OC
- Hence, in the absence of an Occupancy Letter, you should not purchase the said flat, otherwise you may face the consequences in future.
