Did you know that under-construction houses attract more buyers? This is due to their lower property cost compared to the cost of properties after full completion. Tenants have the right to occupy a partially finished construction project if they have a Partial Occupancy Certificate, a valuable document provided by builders. This certificate permits residents to move into the property as soon as a specific phase of the construction reaches completion.
A Partial, Temporary, or Provisional Occupancy Certificate (OC) is typically issued for extensive projects that are being developed in different phases or blocks. After the completion of a specific phase, local authorities inspect the building and grant a Partial OC for that phase.
As each new phase is finished, it receives its own Partial OC. Once the entire project is completed, all the Partial OCs are consolidated into one common OC for the entire project. In essence, a Partial Occupancy Certificate permits occupancy in only a portion of the completed project.
The validity of a Partial Occupancy Certificate lasts either until the entire project is fully completed, and the authorities issue the Final Occupancy Certificate for the entire project, or for a specific period, often around 6 months.
From a financial standpoint, immediate possession is advantageous for customers as it relieves them of the burden of paying EMIs and rent simultaneously. Builders also benefit from this, as they can deliver possession of certain towers before the entire project is completed.
One key drawback of a Partial or Temporary Occupancy Certificate is that certain legal documents related to the property can only be obtained against a regular Occupation Certificate. Additionally, it's not possible to sell a property without a proper Occupation Certificate.
The process of obtaining a Partial OC is similar to that of a regular Occupation Certificate. The developer must submit an application to the local municipal authority, accompanied by all the necessary documents pertaining to the completed section. Authorities will then inspect the completed section and issue a Partial OC if it complies with all necessary requirements.
It's vital to note that a Partial OC only allows occupancy in the specific section it covers, and occupants cannot move into any other part of the building that lacks a Partial OC or a regular OC. Buyers should ensure the developer has the appropriate Occupancy Certificate before taking possession for a guarantee that the building is safe for occupation.
Obtaining a Partial OC involves meeting various prerequisites, which typically include –
Clearance from the fire department.
Adequate waste management areas and composting facilities.
A functional rainwater harvesting facility.
A properly working sewage treatment plant.
Clearance from the Airports Authority of India (if the property is within an airport’s range).
An electrical inspectorate certificate, including one for lifts.
Here are essential aspects to bear in mind regarding partial occupancy certificates –
Home Loan Eligibility: To secure a home loan, ensure your developer possesses a final occupancy certificate, not just a Partial OC for your apartment. However, if your developer collaborates with your chosen financial institution, a home loan may still be attainable.
Phased Construction: Developers typically construct buildings in phases, issuing Partial occupancy certificates for each. A final occupancy certificate is only granted when all phases are completed.
Construction Timeline: Once you receive a Partial OC, the entire construction must wrap up within 7 years.
Monitoring Project Completion: If you receive a Partial OC, closely track the progress of the entire project. By law, the builder must apply for the final OC within 30 days of project completion.
Caution with Partial OC Apartments: Be cautious when accepting an apartment with a Partial OC. If it proves uninhabitable upon inspection, promptly report such cases to the Real Estate Regulatory Authority (RERA) and other relevant authorities.
Utility Connections: While you can apply for electricity and gas connections with a Partial OC, authorities may reject your application if they deem it an insufficient legal document for property possession.
Much like the process of obtaining a Regular Occupancy Certificate, builders also need to apply for a Partial Occupancy Certificate within 30 days from the date of phase or tower completion. This allows developers to seek a Partial OC for a specific section of the building that has reached completion and is prepared for occupation, even if the overall project is not fully finished.
Furthermore, the transition from Partial OCs to Regular OCs occurs once the entire project is completed. Partial OCs are replaced by a final OC, which serves as a consolidated document for the entire project. This final OC is issued when the entire project is ready for occupancy, effectively superseding the partial certificates that were previously in place.
When embarking on the journey of homeownership and securing a home loan, having a valid Occupancy Certificate is vital. Additionally, choose a lender who can streamline the application process further and offers you the best loan terms. On a platform like Bajaj Markets, you can get a home loan of up to ₹15 Crores at moderate interest rates and flexible repayment tenures along with benefits like Home Loan Balance Transfer. For a smooth homeownership experience, choose Bajaj Markets