Commencement Certificate

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

• Fee payment receipt 

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

• 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. 

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:

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 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.