An occupancy certificate refers to a document that certifies that a building adheres to the national building codes and is suitable for occupancy. It is issued by a development authority or a local government agency, such as the municipal corporation. For home buyers, it is essential to make sure that the certificate of occupancy, along with other necessary documents and clearances, are in place. Note that civic authorities have the right to evict occupants in case any mandatory document or approval is unavailable.
Post understanding occupancy certificate meaning, it is important to become familiar with its advantages.
Here are some reasons why obtaining an OC is crucial.
It is also crucial to remember that property tax is only applicable after the builder/owner acquires an OC. To obtain it, they must submit certain documents.
Submit the below documents to acquire an OC.
Ideally, it is a developer’s responsibility to apply for an OC within 30 days from the project completion date. Nevertheless, property owners can also apply for this document from the local government agency or development authority. If the project fulfils the eligibility criteria and there are no issues in relation to the documents submitted, one can obtain an OC within 30 days from the date of application.
In case a builder refuses to provide an OC, home buyers have the right to initiate legal action against them and file a complaint in the consumer forum. They can get a notice issued against builders, which would ask them to provide the document within a month.
Buyers must make sure to check whether the document handed over to them is original or not. Note that a copy of the occupancy certificate will not be accepted when applying for a mortgage loan or during the time of sale of their property.
In case a project is registered under the Real Estate Regulation and Development Act, 2016, individuals can view its status on the web portal of a state’s RERA. As per provisions of the Act, it is mandatory for builders to update any new development concerning the project on the web platform. However, if the status is not updated, individuals can confirm the same from the local authorities.
Many buyers tend to confuse occupancy certificate with possession and completion certificates. Following is a look at establishing the differences between these three documents.
|Occupancy certificate||Competition certificate||Possession certificate|
|It certifies that a property has been built in accordance with the approved plan and by-laws. Builders can give possession of flats only after the issuance of this document. An OC is necessary when applying for water supply or electricity connection.||This document certifies that a project has been completed in adherence to the safety norms and building codes. Only the completion certificate is not enough to get electricity or water supply.||Issued by the builder, this document denotes a change in ownership of the property. A possession certificate doesn’t make a buyer the rightful owner of the property.|
|It is issued after a builder obtains a completion certificate.||It is issued to builders before they acquire an OC.||This certificate is issued after the designated authority gives a completion certificate to a builder.|
Both builders and owners of the concerned property can apply for an OC. In case the former doesn’t do it, the latter can apply for it from a designated government agency or development authority.
After the construction of a budling is complete, the builder or the buyer has to submit an application form to the development authority within 30 days. Along with it, individuals are also required to submit necessary documents, such as the building’s sanctioned plan. Once the application procedure is complete, the OC will be issued within 30 days from the date of submission.
No, it won’t be possible for individuals to sell a property without an OC. Home owners need to have a valid occupancy certificate during the time of sale.