Taking Over of New Flat
I have purchased a flat at Banglore from a reputed construction company. I have not taken any loan for the purchase.The flat should have been ready by Mar 2015,as of now it is likely to take five to six months more for completion of the complete complex with all amenities other than the greening and tree plantation,which will probably take more time because the builder plans to start the work at the end. The flat i bought is 90% complete and other flats are at various stages of completion, .The common amenities promised are progressing and they are at 75% to 80% complete.The delay caused to complete is attributed to non availability of sand in Banglore. There is a clause for penalty for late handing over. The builder is asking for 95% payment now and 100% payment after one month for doing wood work and registration of the flat, he is likely to complete the balance common are work and other amenities up to 95% by the time the wood work in the Flat is completed. If i do not go as per his new schedule of payment i may be harassed later at the time of handing over. I spoke to the other people who have booked flats in the same building, most of them are going soft and following the builders payment schedule to avoid harassment. can some one suggest a good solution under the above circumstances.
what about the completion certificate and occupation certificates, are they not required before registration? more
what about the completion certificate and occupation certificates, are they not required before registration? more
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Few suggestions. a) First of all get your flat registered, stamp duty paid, which confirms that you are the legal holder of the piece of property and/or flat, as per the agreement executed by you with the builder. b) As long as payment effected by you is by cheque, and receipt obtained from the builder, indicates that you are the legal purchaser of that flat. c) Only upon inspection by the Corporation for its completion as per the sanction and/or drawing, floor space, gardening, etc. etc., Completion certificate is issued. d) OC is must when take possession and occupy the flat. e) With regards to delay in handing over possession, in the agreement executed between you and builder, there may be some clause " FORCE MAJOR" condition. Read through the agreement and incase any such clause exists try to analyze the interpretation. In the said clause, the builder might have added minimum period of delay. If you are satisfied with the conditions laid out b y the builder, then to go soft. f) In the event no such clause exists, then, you may approach the Construction and Developers association and request for the latest copy of the delivery/ possession clause by a builder and possible chances for a buyer to level penalty clause on the builder. In a recent case of delayed delivery/ possession of flats by builders, SC had given its comments to PIL filed by a flat buyer at Gurgaon /Greater Noida wherein the SC had also set clause of imposing penalty on Builder/ Developer. This issue came up in SC because lots of builders including very renowned builders in North breached the contractual terms agreed and executed with buyers. Recently Mantry Builders have breached the trust of number of flat buyers at Hyderabad and it appears, the flat buyers also seems to be referring the SC ruling. g) Many other flat buyers might have also paid more than 90% payment, as such, it is always safe to go with other flat buyers. more
Aug 11
Generally no problem,there may be delay in handing over the flat. Keep all receipts, correspondance and drawing in a separate file and regularly have correspondance with the builder more
Aug 11
Please note that Registration of Sale/Purchase Agreement does not require Completion Certificate and Occupation Certificate. Registration of agreement is done after payment of Stamp Duty and can be done at any time. However to safe guard your interest you must insist on Registration of Agreement asap because then only the Terms and Conditions mentioned in the Agreement can be enforced legally. more
Aug 11
This is a perennial issue with the builders in Bangalore. Towards the end of the project they want to take away 100% of the funds so that the customers do not have any holding power to make them complete the remaining work. I too am facing a similar situation where the project is delayed by more than 2 years, The builder is refusing to give the house for interiors unless I pay 100% since the apartment is close to completion. In terms of penalty for delay after lot of pressure they have agreed to waive off 5 to 6 months monthly of maintenance charges. At the same time they are demanding late payment charges for the delayed payments as a result of milestone delays. It is very difficult to prove the reasons for delay and they often attribute to strikes etc. and say these are beyond their control. Delays done by them are often hidden behind these reasons. Unfortunately there is no straight forward solution. You can take the possession of the apartment and then go for legal recourse. Regarding the OC most often the people start moving in before even the builder obtains the OC. This is what I have seen commonly happening in Bangalore. But then I think it is at your own risk. Strictly speaking it is not legal to move in without OC. But the accountability to get the OC should be with the builder. You can go ahead with registration before OC is obtained. more
Aug 11
