Risk in Buying the Flat without OC and CC


Hi I am planning to buy a flat with in Bangalore. And in my budget I saw many flats are available for sale without OC and CC. But BBMP approved A khatha. They are convincing that they have some set of deviations in getting OC and a like jogging track in lesser dimension etc… And they are saying its not mandatory and Around 80% of flats in Bangalore are without OC and CC. As I saw such kind of flats are available in my preferred locations… But flats with OC CC and RERA in my budget are available at the outer city. Iwant to know the risks in buying such flats. Is it advisable to buy… Please advice…


An Occupancy Certificate is obtained after the completion of a project construction by a builder. It is given only after the authorities carry out an inspection on the property. The certificate evidences that the project constructed by the builder has met all the given norms. An Occupancy Certificate will be needed at the time of property buying, seeking a home loan, before taking the property possession and for Khata transfer. It basically confirms that the project is ready to be occupied.Supreme Court has given a judgment in a case between Faqir Chand Gulati and Uppal Agencies Pvt. Ltd. which clearly holds the builder responsible for the provision of completion and occupancy certificate. Occupancy certificate(OC) is needed by a purchaser when he/she is legally moving into a flat. It is illegal to move into a flat without the occupancy certificate. The owner of the flat can be forced to evict the flat in case he/she does not have occupancy certificate.

Occupancy certificate is also required when the buyer applies for Khata. However, note that the occupancy certificate is not needed for registration of the property during purchase. This often leads buyers to believe that the occupancy certificate is not important. However, when such a buyer tries to apply for Khata, he/she will face problems obtaining it. Note that this Khata will definitely be requires in case the owner plans to sell the flat sometime in future.

There is also a chance that the electricity and the water connection could be cut to the flat if the owner does not have the occupancy certificate.

OC is also needed when one plans to get loans to purchase a resale flat. In case of a new under construction flat, banks will provide loans when the flat is being constructed. As OC is not available during construction phase, OC need not be submitted. However, the bank might instead demand for CC (Commencement certificate). Click to read more about commencement certificate. Once the house is purchased, used and then resold at some later date, the new buyer shall demand OC. The new buyer might also intend to buy the flat on loan. In such circumstances, unless you have an OC for your flat, there is a high chance that the new prospective buyer might not be able to get a loan and consequently, be unable to buy the property. In such a case, you will need to search for someone who will be able to buy the flat without availing a loan which can sometimes be difficult and time intensive

Without a building approval plan, a building will be deemed as an illegal construction.It is important that the building owner gets the approved plan from the jurisdictional Commissioner/ an officer authorized by such Commissioner. The authorities sanction a building approval plan taking into consideration the zonal classification, road width, floor area ratio and plot depth. One can obtain a building approval plan by submitting a set of documents such as the Title Deed, property assessment extract, property PID number, survey sketch (from the Department of Survey and Settlement and Land Records), up-to-date tax paid receipt, earlier sanctioned plans (if any), property drawings,

If you buy the flat without obtain Occupancy Certificate, then it’s your burden to obtain the same and approach Consumer court. As a developer, they need to ensure that both external and internal development work is completed before giving possession to buyers.

The Akrama-Sakarama Scheme Passed in 2013, the Akrama-Sakrama in Bangalore came into force on March 23, 2015. This scheme is the result of amendments made to several Acts, including the Karnataka Town and Country Act, and is called the Karnataka Town and Country Planning (Regularisation of unauthorised Developments) Rules 2013. Akrama-Sakarama scheme is applicable only on the properties built on or before October 19, 2013, and is not applicable to under-construction properties.

The Supreme Court has put on hold the Karnataka government’s Akarma-Sakarama Scheme, under which authorities were planning to regularise illigal constructions across the state.

So risk is cast up on your shoulder