Home Discover Journals Partial Occupancy Certificate: All You Need to know

Partial Occupancy Certificate: All You Need to know

By Finserv MARKETS - Apr 1,2020
Views Icon67 Views 0 0 Comments

Partial Occupancy Certificate: All you need to know

What is a Partial Occupancy Certificate?

Have you ever come across a set of buildings that are under mid-construction, but has a couple of buildings already occupied? Well, though it may seem a bit out of the place, occupants are well within their rights to move into a partially-completed construction project.

Under-construction housing properties may give you the luxury of investing in real estate at a lower price. Houses under construction attract more buyers due to the lower cost of the property as opposed to the cost after its completion. Builders also offer the partial occupancy certificate to the residents allowing them to move into the property as soon as the construction for a particular phase is finished.

Hence, with the growing trend of multi-tower projects, construction usually is done in phases. As soon as one phase of the construction is completed, the builder can apply for a certificate of occupancy for the completed part. Initially, it was not possible for the buyers to occupy an apartment in a newly constructed set of buildings unless a full OC was issued.

Requirements to get the OC

A builder can apply for a certificate of occupancy within 30 days of a phase completion. The requirements to get it are:

  • Fire department clearance
  • Sewage treatment must be in place
  • Composting and waste management areas must be in place
  • Clearance from the electrical inspector is mandatory
  • Only the basement and ground floor must be used for parking vehicles

The home-buyer can enjoy the positive implications of availing of a partial OC. Once the builder has received the occupancy certificate, you are legally authorized to live in the apartment. On the flip side, it might be a tad difficult for you to apply for a home loan based just on the POC.

The validity of the Partial OC

The Partial OC is valid until the entire construction is completed and the government authorities issue a final certificate of occupancy for the entire construction project.

Things you need to know

Here are a few things about the partial occupancy certificate that you must know:

  1. You will not be liable to apply for a home loan if your developer has issued only a partial occupancy certificate for your apartment. In the event that you want to apply for a home loan for a particular property, make sure your builder/developer has a final certificate of occupancy and not just partial OC.
  1. However, if your financial institution of choice has a tie-up with your developer, you will likely be able to avail of a home loan.
  1. Generally, developers build buildings in phases. Thus, just after completing one or more of the phases, the builder can apply for a partial occupancy certificate to allow home-buyers to get possession of their property. However, the final certificate of occupancy can only be availed when all phases are built. Also, obtaining an OC depends on several factors. It cannot be guaranteed that having a POC means the developer will receive an OC without fail.
  1. Ideally, once a POC is received, complete construction must be finished within 7 years.
  1. In case you have received a POC from the buyer, you must carefully follow the construction of the entire project. According to the law, once the project completes, the builder has 30 days to apply for the OC.
  1. In many cases, buyers may force you to take an apartment from a building under construction stating that they have its POC. However, upon arrival, you may find the apartment uninhabitable for living. It is your responsibility that you bring such cases under the notice of RERA and other relevant government authorities.
  1. You can apply for utilities like electricity and gas connections under POC. However, the respective authorities will be well within their rights to reject your application if they find that POC is not a final legal document to show the possession of your property.

Ensure you have the requisite documents before applying for a home loan, including your final OC. You should pick a lender who requires a minimum amount of documentation to help you speed up the application process. Bajaj Finserv Home Loans on Finserv MARKETS allows you to apply for a loan of up to ₹3.5 crores with minimum documentation. What’s more, you can even get exciting benefits like Home Loan top-up and Home Loan balance transfer facility! Your home loan will be quickly approved here within minutes and the loan amount will be disbursed in your bank account within 24 hours! Get custom made loan offers with minimal documentation only on Finserv MARKETS. Avail Bajaj Finserv home loans on Finserv MARKETS and get your dream house today!

Apply Now

Partial Occupancy Certificate FAQs

  1. Is partial occupancy a new concept?

Not really. Since the construction industry is gaining momentum in the last few years, this concept is becoming popular.

  1. What is its advantage for me as a buyer?

The biggest benefit for you as a buyer is that you can have immediate possession. You can even apply for water and electricity connections.

  1. What is the validity of a POC?

A POC is valid until the entire construction is completed. However, builders have 7 years from the date of assigning POC to complete the construction.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

Comments

Connect with Us
Connect with Us

Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522