A commencement certificate is a mandatory requirement that developers need to acquire from the local municipal authority. It certifies that the builder has fulfilled all mandatory legal requirements and received approval to proceed with the project as per the approved plan. The certificate is generally available on the RERA website.
To apply for a commencement certificate for the building, developers can proceed by following the standard protocol.
First, the builder needs to submit relevant documents, including project schedule, to begin the land inspection or other preliminary inspections.
The developer then needs to obtain a No Objection Certificate (NOC) from all relevant government bodies.
After getting clearance, completing the paperwork, and paying a documentation fee, the developer receives a RERA-approved certificate.
Before the inspection of the property, builders need to submit some documents to the local authority. Once the builder submits all the paperwork, the relevant departments will begin their inspection. Here is the required list of documents.
Latest tax receipt
Approved building plan
Property ownership documents
NOC from the local fire, water, sanitation, and power department
Photographs of the construction area
Note the local authorities can request additional documents as per the laws and regulations of the area.
Builders and developers can get a building commencement certificate online by following these following steps.
Submit an application for a commencement certificate with a project plan for approval
Submit required documents after getting approval
Get a No Objection Certificate (NOC) from the local government departments
Once the NOC is submitted, the relevant authorities will inspect the property. Post-inspection and approval, the commencement certificate for the building will be issued in two stages- first, when the construction is up to the plinth area and second, for the superstructure.
The commencement certificate has different names in the various local languages that are spoken across India. The following table shows what this certificate is called in other regional languages:
Commencement certificate in Hindi
प्रारंभ प्रमाण पत्र
Commencement certificate in Marathi
Commencement certificate in Kannada
Commencement certificate in Telugu
ప్రారంభ ధృవీకరణ పత్రం
Commencement certificate in Bangla
Commencement certificate in Tamil
The exact procedure for obtaining the certificate may depend upon the local authority. However, there are some general steps, as mentioned below.
Step 1: Submission of application with a plan drawn on the scale of 1:100 to demonstrate the actual dimensions of the land, size and position of the proposed building with other required documents
Step 2: Builder or developer will receive an acknowledgement receipt issued by local authorities.
Step 3: Relevant authorities will inspect and verify the compliance with laws and regulation
Step 4: If there is no discrepancy or non-compliance, the builder can pay the required fee as requested to get the certificate of commencement
A project can begin only after the developer receives the building commencement certificate. As such, knowing what a commencement certificate is essential for the interest of the buyer.
If they invest in a project without checking its commencement certificate, there is a high chance that the project may get indefinitely stalled or even aborted.
A buyer should duly check the commencement certificate not only for the whole project but also for the floor where they want the flat. If the builder willingly furnishes the certificate for the building but is reluctant to do so for a particular floor, then it may mean that the status of the floor is disputed, and if constructed, it would be illegal.
A building is considered illegal if there is no commencement certificate. Meaning if the buyer buys a property in a building constructed without this certificate, they will be the owner of an illegal property. This can also expose them to the possibility of lawsuits in the future.
The commencement certificate validates that there are no pending dues against the property. It is also proof that all the required clearances from various government departments have been issued.
A commencement certificate for a building is a mandatory requirement as the certification ensures that the construction and building adhere to all the statutory norms and regulations. In short, it is proof that the builder has a clear title and received approval from the relevant government offices.
For builders and developers, a government-issued certificate of commencement will save them from legal consequences. As constructing and selling any property without a building commencement certificate is illegal.
For buyers, the certificate is essential as it ensures the legality of their property. The certificate contains a list of all the floors/units in the building. If a floor/unit is not mentioned in the certificate, the specific unit/floor might be illegal or under dispute.
As such, by checking the commencement certificate for the building, the buyer ensures that they are purchasing legal property. This eliminated the risk of legal issues in the future.
The validity of the commencement certificate for the building can vary depending on the state. However, generally, a certificate is valid for about 2-3 years. To ensure that building construction complies with the law and regulations, the builder must renew the commencement certificate for the building periodically.
Continuing construction with a certificate past its validity can get the builder in legal jeopardy. The authorities can claim the construction after the validity expiration as illegal. This may cost the developer and builders their reputation, as well as affect the sales of the building.
As mentioned, any construction done post the expiry of a commencement certificate could mean that the construction is illegal. For buyers, this can make getting home loan approval challenging.
This is because lenders are less likely to approve the application if the certificate is invalid. Moreover, they may put the whole process on hold until the builder renews the certificate. This would delay the disbursement and the buyer’s access to funds and, subsequently, the property.
Maharashtra Housing and Area Development Authority (MHADA) received a green light from the Maharashtra cabinet in 2020 for a sped-up redevelopment in Mumbai. For all the cessed buildings, the construction must complete within three years of the issue of the certificate
MahaRERA or The Maharashtra Real Estate Regulatory Authority is to verify the commencement certificate before the registration of the project happens. This remains applicable for all projects starting from June 19 2023. Hence, it is mandatory for all local authorities to submit the commencement certificate before the project begins.
A commencement certificate is not an optional procedure. Every owner should check for this and other documents before buying the property. It is an assurance to the buyer that the property they are investing in is safe from any legal or economic dispute.
In case you are purchasing a residential property, you can apply for a loan through Bajaj Markets and get a competitive home loan interest rate for affordable financial assistance. In addition, you can also get information about land records and other critical details you need to know when buying a property in any Indian state.
To get the certificate, the builder needs to submit an application with a project plan and an NOC from respective offices after inspection and verification. Post, the developer can pay the required fee to get the certificate.
The certificate is mandatory and helps verify the legality of the property. It certifies that the property satisfies all the local norms and regulations.
A builder or a developer can apply for the certificate with the local municipal authority before beginning the construction.
This certificate is mandatory before construction. If your builder fails to give you the certificate, the building may be illegally constructed. In such a case, the builder is liable and will be prosecuted.
The municipal authority issues this certificate after the plan receives clearance from the relevant departments.
No, you must not choose a project where a builder has not obtained this certificate. Absence of this certificate indicates that the property might be either illegal or under dispute.
Purchasing a property without this certificate may have legal consequences as any property without complete documents is considered illegal.
If the construction is not completed within the validity period of the certificate, the builder must apply for renewal. The lender can hold the disbursal of the home loan until the renewed commencement certificate is submitted by the buyer.
No. An encumbrance certificate certifies that there are no existing liabilities, such as a loan attached to the property. In comparison, a commencement certificate authorises the builder/developer to begin the construction.
A commencement certificate is a mandatory document builders must get before construction. On the other hand, an occupation certificate is for the owners’ benefit. With an occupation certificate, the owner of the building /apartment is entitled to the local municipal body offered amenities, like public roads, sanitation, electricity, and water.
A commencement certificate for a building is required before the construction starts, as per the regulation protocol. On the other hand, a completion certificate is allotted after the construction is complete. It confirms the building complies with the local municipal authority norms.