Premature Occupancy by Flat Purchasers
Delay in delivering flats in high rises on time has led to purchasers occupying their homes before receiving their occupancy certificates that are obtained for the projects by the builders.
Property developers are supposed to obtain occupancy certificates from the nearest gram panchayat or municipality in whose area the property is located. Delay in completion of projects has led to many purchasers move into their flats before registration procedures are completed or occupancy certificate awarded which is done only when the building reaches full completion.
Reasons for Occupancy: Many realtors have stated that that the market slump in the past few years has led to delaying of many projects. This in turn has led owners to enter into litigation with property developers. For those who have borrowed or taken loans for purchasing their flats are forced to move into the new property even before completion of the project and before the building is certified for occupancy.
Most of these purchasers have financed their purchases from bank loans and must repay them. Vijay Sarathu, President-Elect National Association of Realtors states that many buyers in the recent past have opted to move into their new flats before receiving the occupancy certificate or registration procedures are complete.
Effects: For those purchasers whose homes have reached completion stage is able to move in to their flats but some home owners are faced with a peculiar situation. Premature occupancy of the flats by the latter before the completion of projects threatens the future completion as well.
Places where such occupancy has occurred: While several such instances of premature occupancy have been seen, some have been reported. In Gachibowli, one of the towers of the Power Welfare Society Project sought an injunction against the occupancy in the project as 30 residents started living. The tower construction work has been halted for more than a year and gradually incomplete flats in other blocks are also starting to be occupied in spite of the fact that it is yet to receive its occupancy certificate.
R Nityanand, a property owner from the flat says he has approached the court with the claim that most flat owners have paid for their flats and they fear that once other flats are occupied, the remaining towers might not be constructed leading to the shelving of the project.
Source: The Hindu
