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Shourya Mehta   16 November 2023

Property registration without oc

I want to know if I can proceed for registration of the property which I purchased without OC being granted yet for the property. What will be the effects of it if I do so? Will I still be eligible to get the refund if property fails to secure the OC? Also, what are the effects if I sign the indemnity form for taking possession without OC?


 4 Replies

T. Kalaiselvan, Advocate (Advocate)     16 November 2023

it is mandatory for the builder or developer to obtain an Occupancy Certificate before selling any apartment or flat in the building. So, a flat cannot be sold or occupied without an Occupancy Certificate. Moreover, it can be considered as illegal to buy a flat without OC.

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.

Without an OC, the authorities can disconnect the water connection, sewer connection, or electrical supply without notice. Your building may be dismantled if it lacks a valid OC since it is classified as an illegal structure. The OC is essential when applying for a home loan or a loan to buy a resale unit.

Shourya Mehta   16 November 2023

I am not willing to take the possession before OC is secured. I want to know if it's okay to complete the registration without OC being granted yet for the property. What are the implications of it? Can I still file a law suit against the builder and get my money back after registering the property to my name?

In short, should I go for the registration of the property or should I wait till the OC is secured?

T. Kalaiselvan, Advocate (Advocate)     17 November 2023

Once the property is registered on your name then whether you take possession or not, it will not be a matter of concern at all to the builder.

If the sale deed has been executed and registered to your name, then you cannot cancel the sale deed hence you cannot claim refund of the consideration amount paid by you. 

Therefore you better wait for the OC to be procured by the builder even for getting the property registered on your name

Dr. J C Vashista (Advocate and Legal Consultant)     17 November 2023

Very well advised by expert Mr. T Kalaiselvan, I fully agree with him.

Registered sale transaction includes transfer of title as well as possession.

It is advisable to wait till obtaining OC. 

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