Real estate basics: What is an Occupancy Certificate?
An occupancy certificate is a crucial document you would like to get, while buying any new property. We explain what it’s and why you would like it, when investing in land
An occupancy certificate (OC), issued by the local authorities, certifies that a building is fit occupation and has been constructed as per the approved plan and in compliance with local laws.
What is the importance of an occupancy certificate?
An occupancy certificate is a document that is issued by a local government agency or planning authority, upon the completion of construction of a new project. The certificate is proof that the project has been built, by adhering to the applicable building codes, relevant regulations and laws. It is the responsibility of the developer to get an occupancy certificate, once the project has been completed. The certificate is an indication that the building is suitable for occupancy. An OC is required, when applying for water, sanitation and electricity connections.
For home owners, an OC is important to cement the status of the property they own. In the absence of a legitimate OC for a property, the local municipal body has the proper to initiate action, because without an OC, a project is deemed an unauthorized structure. You will require an OC, once you apply for a home equity credit, or if you’re purchasing a resale property. You would also need a legitimate OC, once you wish to sell your property.
How can you obtain an occupancy certificate?
Ideally, a developer must apply for an OC, within 30 days of the completion of the project. As a landowner, you’ll also apply for an OC from the Local Corporation or municipality. If the project has fulfilled all the standards necessary for approval, you’ll usually receive a replica of the OC within 30 days of the appliance. Here are the documents that you simply will got to submit, as a part of your application:
• Project commencement certificate.
• Project completion certificate.
• NOCs for fire and pollution.
• Latest property tax receipt.
• Copy of the building’s sanctioned plan.
Difference between occupancy, completion and possession certificate
The authorities issue a completion certificate (CC) to a housing project, after ensuring that it’s all requirements in situ to be habitable. It is only after a CC is issued to a project that it becomes ready for possession for home buyers. An OC, on the opposite hand, may be a certificate stating that the project has been inbuilt accordance with all construction norms, building bye-laws, etc. It is only after a project receives an OC, can the builder apply for various utilities for the project. A possession certificate is issued to the customer by the developer, as proof of transfer of ownership. It mentions the date of possession of the property by the new buyer.
Occupancy certificate
Issued by the authorities, stating that the project follows all construction norms and building bye-laws.
Builder applies for utilities (electricity, power, water supply, etc.) after receiving the OC.
Completion certificate
Issued to a public housing, after ensuring that it has all requirements in place to be habitable.
Possession is offered once the CC is issued
Possession certificate
Issued by the developer indicating the change in ownership.
A possession certificate is issued within 30 days, if the building has been constructed in compliance with accepted plans.
Your rights as a property owner
If the developer refuses to supply an OC, or he hasn’t acquired one even after the project has been completed, you’ll take action against the developer. A legal notice are often issued, asking him to supply the OC and you’ll even take the case to a consumer court. Legislation like the Real Estate (Regulation and Development) Act (RERA), are expected to significantly decrease instances of negligence or fraud by developers. However, as property owners, you must be vigilant and ensure that important documents like the OC are in place, to secure your rights over your property.
What is ‘Temporary Occupancy Certificate’?
A temporary occupation certificate is subject to cancellation. The term ‘temporary occupancy certificate’ does not exist in any rule book of any authority. However, the term ‘partial completion certificate’ exists, which certifies that the builder can facilitate tower-wise completion. Buyers should confine mind that the lifespan of a sanction plan is five years, which at the best are often extended for 2 years alongside a fine. Once a buyer has taken possession on a short lived OC, he must promptly ask the builder for a permanent OC on completion.
How to check the status of Occupancy Certificate?
The status of a project are often accessed on the online portal of the concerned state’s RERA, if the project is registered under the Act. The RERA mandates that each one builders update the developments within the project on a daily basis, on the portal. If the same is not updated or available on the web portals, it can be confirmed from the local authorities or civic bodies.
