✓ Home Loan from ₹2 Lakhs to ₹15 Crores ✓ Interest Rates Starting @ 8.50% Apply Now

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.

Commencement Certificate: Steps for Developer

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.

Commencement Certificate: Documents Required

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

  • Fee payment receipt 

 

Note the local authorities can request additional documents as per the laws and regulations of the area. 

Certificate of Commencement: Steps to Get the Certificate

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

  • Submit the NOC to the municipal office

 

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. 

Commencement Certificate Issuance: Planning and Procedure

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 

Why is a Commencement Certificate necessary for Home Buyers?

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.

Read More

Commencement Certificate: Importance

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.

What is the Validity Period of a Commencement Certificate?

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.

How Does the Validity Period Affect a Home Loan?

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.

Conclusion

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.

FAQs on Commencement Certificate

How can a real estate developer/builder get a commencement certificate?

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.

Why is a commencement certificate required?

The certificate is mandatory and helps verify the legality of the property. It certifies that the property satisfies all the local norms and regulations.

Who can apply for the certificate of commencement?

A builder or a developer can apply for the certificate with the local municipal authority before beginning the construction.

What if I didn't get the commencement certificate when I bought the house?

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.

Who issues the commencement certificate?

The municipal authority issues this certificate after the plan receives clearance from the relevant departments.

Can you choose the project in the absence of the commencement certificate?

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.

What if I have purchased a property without the commencement certificate?

Purchasing a property without this certificate may have legal consequences as any property without complete documents is considered illegal.

How does the commencement certificate affect the disbursement of funds in a home loan?

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.

Is an encumbrance certificate the same as a commencement certificate?

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.

What’s the difference between an occupation certificate and a commencement certificate?

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.

How does a completion certificate differ from a commencement certificate?

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.

Home
active_tab
Loan Offer
active_tab
Download App
active_tab
Credit Score
active_tab