Announcement

Collapse
No announcement yet.

How to Ensure That Builder Will Provide OC?

Collapse
X
Collapse

How to Ensure That Builder Will Provide OC?

Last updated: July 18 2015
16 | Posts
5388 | Views
  • Time
  • Show
Clear All
new posts

  • How to Ensure That Builder Will Provide OC?

    Hi,

    I have been in the process of searching for an apartment in Bangalore for quite some time now. In the process I came to learn about many new things. One such thing is importance of getting an Occupancy certificate after taking possession of the apartment. Hence I have made it a point now to ask at every site I visit that:

    - Whether the builder is going to provide OC or not ?

    - Whether the builder is ready to mention it clearly in their sales agreement ?

    And I have got various responses from different builders on this.
    Like Owners/ association has to apply and obtain it, Going for OC will make the project costlier, We will not provide OC now but shall regularize it later when akrama-sakrama comes in to effect etc.

    Some builders even say that they are ready to mention it as part of sales agreement. When I insisted on checking this clause in the sales agreement of a premium builder...it actually reads:
    "...no responsibility will be accepted by the First Party for delays in obtaining electricity, water connections, Clearances, Occupancy and other Certificates from the statutory authorities and Second Party shall not be entitled to claim any damage/ losses/ interest against the First Party on the ground of such delay."

    To me that simply means the builder does not take any responsibility in obtaining OC for the buyer.

    Another premium builder's representative says ... "It is not possible on part of him or any other builder to commit/guarantee OC on sales agreement. Even committing that they will ever apply for OC is also not possible in agreement. At most they can give only a mail confirmation about it. What ever is mentioned on sales deed is a common format followed by all CREDAI members, and cannot be altered on individual request."

    All this responses are pretty frustrating for a buyer who expects a clean and transparent deal with the builder. So I have the following queries in this regard.

    - Should it be possible and sufficient to get a clear commitment on OC from a builder on sales agreement or any legal/stamp paper ?

    - If builder is willing only to commit it in writing through email or sealed letter head, will it hold any good ?

    - Is it true that all builders with CREDAI membership have to follow a common sales deed format and cannot accommodate any additional clauses which protects the buyers interest ?

    Any knowledgeable members, lawyers or property advisers , please advise.
    Last edited July 18 2015, 11:13 AM.
  • #2

    #2

    Re : How to Ensure That Builder Will Provide OC?

    I have tried to get this in writing at the time of sale agreement. Builder has denied it and given me oral confirmation as it is getting OC issued is with BBMP and looks like no timelines can be set. (as they will not be able to confirm all the items as per agreement is done). I went ahead as there is no violation in his previous projects.

    Comment

    • #3

      #3

      Re : How to Ensure That Builder Will Provide OC?

      First of all reject all builders who say these kind of things:

      "Owners/ association has to apply and obtain it, Going for OC will make the project costlier, We will not provide OC now but shall regularize it later when akrama-sakrama comes in to effect ... etc etc..."

      The builders who told you the above bullshit will never give OC, so no use of even talking to such people. Also, this whole CREDAI thing is hogwash, CREDAI is just a branding and marketing exercise and it is an organisation which of the builder, by the builder and for the builder. So, don't expect CREDAI doing anything for consumers and any builder can add/amend additional clauses and this CREDAI reason is just to fool the people.

      I have heard that some builders give OC assurance in sale agreement but have not met such builders till now, some new builders may give this to get customers as they don't have a brand name yet but i don't think any big builder will give it in agreement.

      So, you have three choices for ensuring OC:

      1. Buy a RTM(ready to move) flat or a relatively new resale flat and you will get OC as you check for OC before buying. This is the only safe 100% guaranteed option for getting OC.

      2. Find some small, mid-size builder who will give OC clause in sale agreement.

      3. Shortlist few flats of your choice and then check out the past projects of the same builder if he has given OC and other similar issues and then trust the builder and book the flat.

      Comment

      • #4

        #4

        Re : How to Ensure That Builder Will Provide OC?

        Hi Friends,

        Thanks for providing your inputs on this.

        @etios123 : Thank you for spending time in reading and writing back so much in details.
        Finding your suggestions very informative and useful indeed

        Comment

        • #5

          #5

          Re : How to Ensure That Builder Will Provide OC?

          I have seen so many projects and the answers are almost the same. Moreover, there are very few projects where you dont find any deviation. Some promise rooftop swimming pool, some promise partyhall or pent houses. When I checked their approved plan I saw most of the plan has regular floors with terraces. No pent houses or as such gets a mention on the approved plan.

          Comment

          • #6

            #6

            Re : How to Ensure That Builder Will Provide OC?

            The duty of builder to obtain OC should be incorporated in sale agreement.
            Model agreements always have this clause.
            If builder wants to palm off this vital legal requirement,he must be having some deviation in his construction.
            Be careful with such builders.
            Always have a lawyer to scan and advice regarding sale agreement before you sign it.
            Clause runs something like this:
            The Vendor shall deliver the possession of the apartment to the Purchaser on or before ………………. day of ……………, 2000. The vendor shall obtain the completion and occupation certificate in respect I the said apartment from the ……………….. Municipal Corporation. The purchaser shall take possession of the apartment within one week of ) a receipt of the notice of the Vendor to the Purchaser that the said apartment is ready for use and occupation and that the completion certificate and occupation certificate has been obtained from the ……………….. Municipal Corporation.
            Last edited April 5 2014, 09:28 PM.

            Comment

            • #7

              #7

              Re : How to Ensure That Builder Will Provide OC?

              Builders are refusing to give a commitment in writing on OC. I am in the market for the last 1-1/2 years. So far only one small builder, whose project is far inside and remote, had said that they'll put the clause on the sale deed. Finding ready to move-in projects with OC is also difficult - you can find one if you are ready to pay a huge premium

              One A-grade builder who have given OC for some of their projects did not even get the khata transfered for one of their big projects. Thus, the mutual fund disclaimer applies here too

              Originally posted by vaibav123 View Post
              The duty of builder to obtain OC should be incorporated in sale agreement.
              Model agreements always have this clause.
              If builder wants to palm off this vital legal requirement,he must be having some deviation in his construction.
              Be careful with such builders.
              Always have a lawyer to scan and advice regarding sale agreement before you sign it.
              Clause runs something like this:
              The Vendor shall deliver the possession of the apartment to the Purchaser on or before ………………. day of ……………, 2000. The vendor shall obtain the completion and occupation certificate in respect I the said apartment from the ……………….. Municipal Corporation. The purchaser shall take possession of the apartment within one week of ) a receipt of the notice of the Vendor to the Purchaser that the said apartment is ready for use and occupation and that the completion certificate and occupation certificate has been obtained from the ……………….. Municipal Corporation.

              Comment

              • #8

                #8

                Re : How to Ensure That Builder Will Provide OC?

                The builders are all registered with the concerned Municipality for doing their projects.
                If builders refuse to abide by standard terms for sale of flat, registered complaint to municipality can be a pressure point.
                If more buyers refuse to buy in such projects, then decreasing sales will make him follow rules.
                Otherwise it is quite a tricky situation.
                Best way is approach in a group to municipality concerned.
                Last edited July 1 2015, 10:51 AM. Reason: Text Formatting

                Comment

                • #9

                  #9

                  Re : How to Ensure That Builder Will Provide OC?

                  Regarding OC

                  Hello Frnds

                  Can you suggest me , whether Grill (full covered) in Balcony or utility is Allowed to get OC or not ??

                  Comment

                  • #10

                    #10

                    Re : How to Ensure That Builder Will Provide OC?

                    Yes, As rightly pointed out most builders refuse to mention OC/CC as a part of the Agreement.

                    I was looking at apartments at Sarjapur road, and I finalized an apartment at Essem 18 Poetree. This Builder looks totally different compared to your normal breed of builders. He has even mentioned it in the agreement that OC/CC will be provided by him.

                    So I guess some smaller/ Not so well known builders like Essem 18 would definitely be there, who provide this in writing.
                    Last edited July 18 2015, 11:11 AM.

                    Comment

                    Have any questions or thoughts about this?
                    Working...
                    X