An occupancy certificate meaning a document that evidences the completion of the building as per the approved plan and compliance of local laws. The absence of an OC certificate makes it difficult to get the water and sanitary connection. Even the banks and financial institutions do not sanction loans against the flat unless the certificate is not issued by the concerned authorities. If the buyers are found doing so, the local authorities can ask for eviction of their flats or heavy penalties levied on them.
The local municipal authorities issue the Occupancy Certificate within 30 days from the date of application. The following documents are required to obtain the certificate of occupancy.
The certificate poses as proof that the building is safe to occupy, and it is required while applying for water, electricity, and sanitation connections from the local municipal body. Obtaining an occupancy certificate is an essential requirement, the buyer cannot legally occupy the apartment or building unless this certificate is occupied by the developer. Also, an Occupancy Certificate is one of the mandatory documents to be submitted while availing a home loan. This certificate is one of the most important certificates required if you want to be able to sell the property.
Also know about Encumbrance Certificate before buying a property.
The builder/developer and the owner of the house/flat can apply for a Certificate of Occupancy.
No, it is advisable to accept the possession letter of a flat/house only after the developer has obtained the Occupation Certificate.
Under the RERA Act, provisions are made to make some payments to the builder or developer. A certain portion of this payment from the total amount can be paid to the builder; however, the builder or developer cannot claim 100% payment without obtaining the OC Certificate.
No, without a valid OC, your occupancy is illegal as it can be classified as an unauthorized structure by the authorities. The Occupation Certificate is one of the most important documents required in order to extend a home loan. Therefore, if the buyer is looking to avail a home loan for the purpose of buying the property, they will be required to submit the without the OC Certificate. Thus, it’s necessary to acquire an OC certificate to sell your property
The local municipal authorities will issue the Occupation Certificate based on the local laws and regulations for the construction of a housing project.
Yes, a developer/builder can issue a partial Occupation Certificate when there are phases of numerous projects that have different completion dates. The local authority can issue a partial Occupancy Certificate for the completed phase or block. Once the entire project is completed and ready for occupancy a final Occupation Certificate would replace the partial Occupation Certificate.
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