Hi,
I am looking forward to buy a flat in Bangalore with an apartment with below state. Could you please suggest how to proceed with the sale agreement?
Situation:
A ready to move in apartment (G+3) with 36 units. 30 units got sold & 27 units got occupied by the buyers. OC hasn't been provided yet. The builder is promising to provide the same.
There are quite a deviations from the approved plan. There is a set back deviation & In the terrace of the apartment there was a penthouse, 2 flat units, Gym and Club house which are deviations from the approved plan. In the approved plan there was only G+3 there is no mention of penthouse, 2 flat units, Gym & Club house in the terrace.
Now, the builder says (via Sales representative), due to TDR (Transfer of Development Rights), they had constructed those extra units in the terrace floor (Penthouse, 2 flat units, Gym & Club House) and they (the builder) are planning to get the approval for those units as well.
However, the builder has not applied for the following yet.
1. TDR approval
2. Approval for updated plan
The builder says, They had applied for NOC for the older approved plan, once they got NOC they will apply for the approval of TDR & new updated plan together. The builder is promising to get the OC on his own expense and agrees to put a clause in the sale agreement as well.
Now, the builder wants me to get into the agreement & registration (once bank loan process is completed).
However, If I pay all the amount & register then I don't see any hold on builder. The builder could abscond or delay in producing the OC, once all the units are sold. Even if I approach the court how long the legal battle will take? The builder might just prolong the legal battle and make me feel to lose the battle without getting OC? What if the builder is absconded?
Below are the options I am thinking which will safeguard my money. I don't see a point in paying full amount when there is no OC.
1) Register the apartment with 90% payment & pay the remaining only after OC is produced. With this I can move in.
2) Just complete the sale agreement (20% payment) & wait for another 6 months to do the registration only after OC is provided? If OC is not provided till that time, then walk off the deal?
3) Register by paying full amount & put a indemnity clause to repay the penalty or damages if OC is not provided by the builder in stipulated time. But here how will I get back my money. Once I paid all the amount then I still have to pay to battle the legal & for the process of getting OC.
Is there any better option available for this scenario? Please note the other buyers are already staying in the flat without OC. All of them are expecting the OC. The builder says he will get the OC on his own cost and he accepts to put it in the Sale agreement. But I am wondering whether there is any catch. Because, with so much deviations (penthouse and other floor units in terrace and set back deviation), I am really concerned whether the builder will pay out of his pocket to get those approval. My friends gave a word of caution he might not do it, but I am looking for a suggestions.
Thanks
