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Commencement Certificate

CC Meaning, Importance of Commencement Certificate for Home Buyers

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A Commencement certificate is issued by the local municipal authority granting permission to the developer to commence construction. It certifies that the builder has fulfilled all the mandatory legal requirements and thus received a green signal from the authorities for proceeding with the project as per the approved building plan.

Documents required for Commencement Certificate

The builder needs to submit the following documents to the local authority in order to obtain the commencement certificate:

 

  • Latest tax receipt

  • NOC from required government departments

  • Concerned property documents

  • Photographs

Steps to obtain the Certificate of Commencement

The builder needs to follow the below-mentioned steps in order to obtain the commencement certificate from the local authority:

 

  • Step 1: The builder/developer needs to submit the project plan along with an NOC (No Objection Certificate) from various government offices such as fire, sanitation, water, and electricity departments.

  • Step 2: The certificate of commencement is then issued in two stages- first when the construction is up to the plinth area and second for the superstructure.

Commencement Certificate in Local Languages

The commencement certificate has different names in the various local languages that are spoken across India. The following table shows what commencement certificate is called in different local languages:

Commencement certificate in Hindi

प्रारंभ प्रमाण पत्र

Commencement certificate in Marathi

आरंभ प्रमाणपत्र

Commencement certificate in Kannada

ಪ್ರಾರಂಭ ಪ್ರಮಾಣಪತ್ರ

Commencement certificate in Telugu

ప్రారంభ ధృవీకరణ పత్రం

Commencement certificate in Bangla

প্রারম্ভিক শংসাপত্র

Commencement certificate in Tamil

தொடக்க சான்றிதழ்

Planning and procedures for the issue of Commencement Certificate

While the exact procedure for obtaining the commencement certificate may differ depending upon the local authority, the general steps to be followed are as under:

 

  • Step 1: The local authority receives the application along with a plan drawn to a scale of 1:100 reflecting the actual dimensions of the land, and the size of the proposed building along with the position of the building on the plot accompanied with the required documents.

  • Step 2: Upon the receipt of the application for the Commencement Certificate, the local authority issues an acknowledgement receipt.

  • Step 3: The application and the documents are then verified to check if the proposed building adheres to the local laws and regulations.

  • Step 4: If the local authority finds that the submitted building plan is in accordance with local regulations and plot records, the builder is required to pay the prescribed fee for the issuance of the commencement certificate.

Why is a Commencement Certificate necessary for Home Buyers

Since a project is green flagged only after the developer receives the building commencement certificate, knowing about it is essential for the interest of the buyer. 

 

  • If they invest in a project without checking for its commencement certificate, there are high chances 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 a commencement certificate for the building but is reluctant to do so for a particular floor, then it means the status of the floor is disputed and if constructed it would be illegal.

  • Any property without a building commencement certificate is considered illegal. So, if the buyer proceeds to buy without checking the status of the commencement certificate, they will be the owner of an illegal property and may have to face 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.

Importance of Commencement Certificate

  • The commencement certificate certifies the legality of the property and verifies that the property adheres to all the statutory norms and regulations.

  • The certificate ensures that the property has a clear title, dues, and approved clearances by the various government offices.

  • The commencement certificate can save you from legal consequences as the authorities can penalize a resident or owner of an illegal property.

  • The certificate contains a list of all the floors/units in the building. If your floor/unit is not mentioned in the commencement certificate, the specific unit/floor might be illegal or under dispute.

Conclusion

Commencement certificate is an important document that every builder or developer should acquire before commencing construction of any property. The certificate also provides assurance to the buyer that the property is not involved in any legal or economic dispute. Therefore, buyers must mandatorily look for a commencement certificate. In case you are purchasing a residential property, you can apply for a home loan through Bajaj Markets and get financial assistance at competitive interest rates.

Commencement Certificate FAQs

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

    In order to get a commencement certificate, the builder/developer needs to submit the project plan along with an NOC (No Objection Certificate) from the various government departments to the local municipal authority and pay the prescribed fee.

  • ✔️Why is a commencement certificate required?

    A commencement certificate is required for verification of the legality of the property and 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 a commencement certificate with the local municipal authority. It is mandatory for builders to obtain a commencement certificate before they can start construction.

  • ✔️Who issues the commencement certificate?

    The commencement certificate is issued by the local municipal authority.

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

    No, you must not choose a project in the absence of the commencement certificate for it 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 a commencement certificate may have legal consequences as a property without a proper commencement certificate is considered illegal.

  • ✔️What is the difference between an encumbrance certificate and a commencement certificate?

    An encumbrance certificate certifies that there are no existing liabilities such as a loan attached to the property, while a commencement certificate authorizes the builder/developer to begin the construction.

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

    An occupation certificate enables the owner of the property to enjoy amenities offered by the local municipal body like roads, sanitation, electricity, and water, while a commencement certificate on the other hand allows the builder/developer to begin the construction.

  • ✔️What’s the difference between a completion certificate and a commencement certificate?

    A completion certificate confirms that the concerned property is complete and the structure does not violate any of the local norms, while a commencement certificate is only a permission granted to the builder to start the construction work.