This is why you should not buy flat without occupancy certificate!

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A property buyer, Mihir (name changed) walked into the office of a real estate agent and wanted to buy a 3BHK flat. The agent offered him a flat with all the amenities. Mihir was okay with the flat but wanted to know if the builder has got occupancy certificate. The agent says the developer has applied for it and it should be available in a few days. He added that the flat is cheap because OC hasn’t been approved yet. Price will go up by 4-5 lakh as soon as OC will be approved. He urged Mihir to buy right now as deal is attractive.

Like Mihir, are you also considering buying a flat without an OC, thinking it’s cheaper? Then wait and know these things so that, like Mihir, you don’t get caught in something claiming to be cheaper.

Whenever we buy a flat, we often hear a term…Occupancy Certificate. How essential is this word for your dream home?

And if you have overlooked it, how much loss can it cause?   Let’s find out…

Whenever developers construct a building, they have to comply with various regulations… such as building by-laws, building plans, master plans, fire and safety, disaster management plans, approvals from mining, airport authorities, and environmental clearances etc.

There are many different plans and approvals involved.

Local urban bodies like municipal corporations and development authorities, approve these plans, giving the developer permission to construct the building.

After the building is constructed and ready, the authority checks whether the construction aligns with building by-laws and the layout. If the regulations have been followed, the authority issues an Occupancy Certificate (OC) to the developer.

The OC, or Occupancy Certificate, indicates that the construction of the building has adhered to regulations. All necessary approvals have been obtained, and the building is ready for occupancy… Meaning, you can live in it..

Avoid buying ready-to-move-in flats without an Occupancy Certificate (OC)… This is because it’s possible that building regulations were not followed during construction, leading the local authority to withhold the OC.

In such cases, if any mishap occurs, the responsibility lies not with the authority but with the homebuyer.

Because the authority has not issued an OC, meaning it hasn’t certified that the building is fit for occupancy.

The property title, or ownership rights, also do not transfer to you until the authority issues the Occupancy Certificate.

In places like Noida, Greater Noida, and many others, it has been observed that developers gain possession by conducting ‘Possession for Fit Out,’ which essentially means illegal possession.

Possession for Fit Out means that you have possession to get the interior work done in your flat, but due to a lack of awareness, people start living there.

The result is that the builder takes full payment, and yet, ownership rights do not transfer to you.

Now you must understand how crucial an Occupancy Certificate is for a flat. Like Mihir, if you are offered a tempting deal on a cheaper home, it’s better to stay away. Due to lack of information, if you have purchased a flat without an OC from a builder or any seller and have started living in it, what will happen?

Will you have to leave your home? Let’s find out from an expert…

The decision to buy a flat without an OC can lead to more than just safety and title issue. For ready-to-move-in flats without an Occupancy Certificate, getting a loan may be difficult. If you manage to get a loan, the interest rate could be higher, or you may need to pay pre-EMI until the registry is done. If you decide to sell such a property in the future, you will face difficulties. You may not get the right price for the flat, and finding a buyer might also become challenging.

You buy a home only once in your lifetime, which is why it’s called a ‘dream home.’ Purchasing a flat without an Occupancy Certificate can impact your dream home, your finances, and your security.

Whether you buy a ready-to-move-in flat from a builder or a seller, always check for the OC..

In the case of under-construction properties, check things like the layout plan, building plan, and RERA registration.

If you have even the slightest doubt, inquire with the development authority about the project and the developer. So that both your money and you remain secure.

If you have purchased an under-construction flat, do not take possession of the flat without an Occupancy Certificate.