GREATER NOIDA: Four days after a Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) notification that builders can offer possession to buyers if occupancy certificates (OCs) are delayed by the authority, developers have started offering possession in ready complexes.
Noida-based Logix Group has offered possession to around 300 buyers at the Logix Blossom County project in Sector 137, which is located along the Noida-Greater Noida Expressway.
“The UP-Rera notification will benefit the real estate industry as the apartment buyers can take possession and shift into ready flats without waiting for the OC, which takes time to be obtained. The UP-Rera order has created a positive sentiment in the market,” Shakti Nath, promoter of Logix Group, said.
In the wake of the notification, thousands of homebuyers can now execute a tripartite agreement ( between builder, owner and authority) to sub-lease and shift into their respective flats without waiting for flat registration or occupancy certificate.
As per Section 11 (4) (B) of Rera Act, a developer has to obtain a completion/occupancy certificate from the local authority such as Noida, Greater Noida and Yamuna Expressway for a housing or other kinds of building.
The authority, as per norms, is supposed to issue OCs within seven days of application. If the officials need some clarification, document or changes in a project, the same has to be intimated to the builder within seven days and the OC issued once all deficiencies are completed.
{{/usCountry}}The authority, as per norms, is supposed to issue OCs within seven days of application. If the officials need some clarification, document or changes in a project, the same has to be intimated to the builder within seven days and the OC issued once all deficiencies are completed.
{{/usCountry}}Apart from Amrapali Group’s six housing projects, where 10,000 apartments are waiting for registries to take place, there are around 30,000 flat buyers in the district who are waiting for registrations and flat possession, Noida authority officials said. Greater Noida has about 10,000 such buyers.
There are many cases wherein the issuance of occupancy certificate is delayed over technical reasons. As a result, an apartment owner has to suffer even after paying the total flat cost.
“Now, thousands of apartment buyers in Noida, Greater Noida and Yamuna Expressway areas will not have to suffer in cases of delay in obtaining OC. After our new notification, an apartment owner can execute a tripartite agreement to sub-lease and shift into his/her apartment,” Balvinder Kumar, UP-Rera member, said.
“Before the notification, an apartment buyer used to have an agreement to sub-lease with only the builder. But with that agreement, they cannot legally take possession of the flat. Now, the agreement to sub-lease will have three parties — buyer, builder and authority — and buyers will have a legal right over the property,” Kumar explained.
The UP-Rera has asked authorities to allow tripartite lease deed in apartment complexes, where they have put in place all requisite facilities such as fire safety and structural safety, and cleared all financial dues and obtained other certificates.
“If the authorities have not replied to the builder over the OC application, on the eighth day, the building will be considered deemed approved,” Kumar said.
Apartment buyers and developers are happy with the new notification.
“The notification will give legality to a buyer in cases where OC has been delayed for a long time. The authority should implement it at the earliest,” Shashank Shekhar, an apartment owner, said.
Confederation of Real Estate Developers Association of India (CREDAI), a builders’ lobbying group, has also welcomed the move. “It will expedite the process of issuance of OC for realty projects. This process was already in place in states like Maharashtra. But now, after the UP-Rera notification, it will be put into effect in UP cities. The move will impact the realty sector positively as it empowers homebuyers,” Satish Magar, national president, CREDAI, said.