Commencement Certificate

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:

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.