Increasing instances of delay in delivering flats in high rises has pushed purchasers to occupy homes even before occupancy certificates are obtained for the projects.
Realtors or agents say that the slump in market over the last few years has delayed several projects, forcing owners to enter into litigation with property developers. For property owners who have borrowed to pay for a flat, moving into the new property is the only option even if the project is not completed and the building has not been certified for occupancy.
“There have been many instances in the recent past, some in the heart of the city, where owners have moved into the flats before occupancy certificate for the project and registration is complete. As many would have financed their purchases through bank loans, they cannot wait,” said Vijay Sarathi, President-Elect National Association of Realtors.
Upon completion, the developer obtains occupancy certificate from the gram panchayat or the municipality where the property is located.
The occupancy certificate is awarded only after completion of all components of the projects.
While purchasers whose homes have been completed may have no choice but to move in, some owners are in the peculiar situation where premature occupancy before project completion threatens future completion of the project.
In one such instance, about 30 residents of the one of the towers in Power Welfare Society project in Gachibowli have sought an injunction against occupancy in the project as work on the tower has been halted for more than a year, even as flats in other blocks are being occupied. The disgruntled property owners pointed out that the building had not obtained occupancy certificate.
“While delay is common place today in property development, the greatest concern is the possibility that construction of our houses may be shelved. We apprehend that once other flats are occupied, the remaining tower may not be constructed,” said R Nityanand, one of the owners who had approached court adding that flat owners have already paid up for the flats.
