Saturn (Student) 26 April 2013

Purchase of flat from unregistered society

Hi All,

I am looking for a purchase of flat in a building which is 1 year old without OC. These is a 2nd hold agreement between me and seller. The society is not yet registered as still around 10 flats are to be sold after possession. The builder has a good reputation in locality

I have following questions

1] Should I go purchase of such property?

2] Is there any risk involved in purchase of such property?

3] Which are the documents to be checked before the purchase of such property?

4] Who issues Share Cerificate? In my case there won't be any share certificate( i guess), so in that case what is the document to be used so as to replace against the share certificate?

It will be a great help if you could provide me with the guidance,

Thanks in advance !!!

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2 Replies

Ibrahim Deshmukh (Legal Consultancy) 27 April 2013

To invest in a building which is ready for occupation but Occupation Certificate is not being issued by local authorities is certainly a matter of concern. Perhaps there might be some violations of building regulations by the builder/architect/structural engineer, that may be the reason the OC is not being issued. You need to find out reason before investing. The Completion Certificate (CC) and OC both are required for registration of a Flat with the local area sub-registrar.

Formation and registration of CHS is secondary issue. but CC and OC are must documents one need to insist for.

Ibrahim Deshmukh
Legal Consultant
ibdesh@gmail.com
www.law-india.com

1 Like

Saturn (Student) 27 April 2013

Dear Sir,

Thanks for your reply.

Is it possible to get OC even if the building is just 1 year old and still some flats are yet to be sold?