Owning a flat or a building requires a lot of information and knowledge related to real-estate laws and terms. It is very important to know all these terms and laws to avoid any conflict regarding the property they are buying. And as there are numerous real-estate terms available today we will be explaining to you a very important real-estate term that you must know about is “Occupancy Certificate” (OC).

Occupancy Certificate is a document that you require to have before shifting to a flat or a building. One must always check Occupancy Certificate with the owner before buying a flat or a building. And to get the OC one need to get Building Completion Certificate. So, let’s start with building completion certificate, then we’ll get to OC as well. Here, have a look!

Building Completion Certificate : When a building is completely constructed, the builder can apply for a ‘building completion certificate’ to local authorities. And if the building is constructed as per the approval plan approved by the authorities, then only the builder will get the building completion certificate plan. There can be flaws like distance from the road, the height of the building etc, and if these common things are not constructed as the approved plan then local authorities will not provide building completion certificate. And as possession certificate is followed by building completion certificate, one cannot get possession certificate as well.

Commonly asked questions about building completion certificate

Question 1 – Who can apply for Building completion certificate?

Answer 1 – Builder of the constructed building.

Question 2 – Who will issue Building completion certificate?

Answer 2 – Local civic bodies will issue building completion certificate

Occupancy Certificate: Occupancy certificate is the certificate that we can apply after the complete construction of the building. It can be applied by the builder or the owner of the building to local civic bodies.

A Occupancy certificate is a proof that clarifies that the property is constructed according to the plan. OC can only be obtained once after the construction of the building. Thus, one has to keep it secure. Though, the process of obtaining OC includes one more step that is obtaining building completion certificate. As per the state laws, one cannot legally move into the constructed building unless the owner gets OC from the local civic bodies. Also, the municipality can ask the building owner to leave the building and will consider it illegally occupied or will impose heavy penalties.

Commonly asked questions about OC

Question 1 – Who can apply for OC?

Answer 1 – The builder of the constructed building has to apply, but a building owner can also apply for the same. And if you have already started living in the building, then you can contact to Local Corporation and apply for OC. And if the building is constructed according to the approval plan and you have got building completion certificate then you can easily get the OC.

Question 2 – Who will issue Occupancy Certificate?

Answer 2 – Local administrative and civic bodies will issue Occupancy Certificate. The local civic bodies will not issue the certificate if they find the building is illegally constructed.

Question 3 – How to get Occupancy Certificate?

Answer 3 – To get OC you need the documents given below:

  • Copy of building plan approval
  • Building Commencement Certificate.
  • Copy of Building Completion Certificate.
  • Latest Property Tax receipt
  • Built and section plan
  • NOC for fire and pollution
  • Copy of solar panels and rain harvesting
  • Copies of No Objection Certificates

Question 4 – Is it safe to buy a building or apartment without OC?

Answer 4 – No, it is not safe as anytime the local civic bodies can ask you to leave the building as the owner may not have collected OC. It is strictly advised to buy a flat or a building that has Occupancy Certificate.

Question 5 – Can Builders issue Partial Occupancy Certificate?

Answer 5 – Yes, the builder can issue partial occupancy certificate, but it is only valid till 6 months. When the property is constructed in blocks with varying completion dates, then the builder can issue a partial OC. But, after the complete construction of entire property partial possession certificates are replaced by final land possession certificate. But if you think of getting a home loan with partial possession certificate, then it will be very problematic for you.

The most important time when you should consider possession certificate is before buying a flat, even if the builders are reputed ones. Check the completion certificate, as well as possession certificate (occupancy certificate) and demand it from the property or that building’s owner. And if these certificates and not available with the owner, then there are higher chances that the building is not constructed according to the approved plan by local civic bodies. In these cases, do not occupy the property and search for another one. And if you have already occupied the property, ask for an occupancy certificate and get one at the earliest.

Why Completion Certificate and Occupancy Certificate is Important?

  • While claiming Income Tax benefits on your home loan, you may be asked to show Occupancy Certificate.
  • Living in a property without OC in considered illegal and local administrative can ask you to vacate the building.
  • You may face issues in getting sanitary connection, electricity or water connection.
  • A home loan is only sanctioned when you have the possession certificate.
  • It will be very difficult for you to sell your building or flat without possession certificate in future.

So, this is why Occupancy certificate is important for home buyers.

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