The resale flat I'm buying doesn't have an OC. The builder says it's "applied". Should I still buy it?

No — do not buy without a confirmed OC. Here is why:

What OC means: An Occupancy Certificate is issued by the municipal corporation (BMC in Mumbai) to certify the building is safe to occupy and built as per approved plans.

What "applied" means: It means nothing legally. Applications can be pending for years, rejected, or contingent on the builder paying dues to BMC. Until OC is received, the building is technically an unauthorized structure.

The risks:

1. Banks won't lend. Most banks and HFCs refuse home loans on flats without OC. You'll have to fund 100% from own sources.
2. You can't legally stay. Technically, residing in a building without OC is illegal under MRTP Act.
3. Resale will be a problem. The next buyer will face the same issue — and will discount heavily.
4. BMC demolition risk. Rare but real. Buildings with pending OC can face action.

What to do: Ask the builder to show the OC application receipt + BMC acknowledgement. If they can't, walk away. If they provide it, get an advocate to assess realistic timeline. OC pending <6 months in Mumbai is less of a red flag than OC pending 3+ years.

I have seen too many buyers get burned on this — do not let "good price" justify the risk.