Blog Detail

Importance of Occupancy Certificate while Buying a Home

Have you reserved a house that is under construction? Then you must understand the significance of papers such as the Occupancy Certificate (OC). 

Occupancy Certificate is also known as Possession Certificate. Since these certifications are not necessary while registering a property, most house purchasers neglect or disregard obtaining them from their former owners or apartment builders.

State legislation may make obtaining an Occupancy Certificate obligatory. According to these state regulations, no one can enter a building unless the developer obtains an Occupancy Certificate from the appropriate local administrative or municipal authorities. In the pretext of ‘regularization,’ the company or municipality might order apartment owners to remove unlawfully inhabited apartments or apply harsh fines.

Read: THINGS TO CONSIDER BEFORE BUYING A HOUSE

What is an Occupancy Certificate?

This legal document attests to the construction’s adherence to the authorised construction plans. The local municipal authorities issue it after the construction process is complete and the property is ready to be occupied. Your building will not be lawful to occupy without this paperwork.

The importance of an Occupancy Certificate arises from the fact that it is a document that verifies the completion of all the installations and approvals necessary for a building to be habitable.

An Occupancy Certificate is a document issued by the local government to confirm that:

  • The property is constructed per the authorised plan and bylaws.
  • It follows the building code.
  • All of the necessities are in place.
  • All essential permissions are in place, including the fire No Objection Certificate (NOC).

Also read: FACTORS TO CONSIDER WHILE CHOOSING THE LOCATION TO SETTLE DOWN

How can you Obtain an Occupancy Certificate?

A developer should apply for an OC within 30 days of the project’s completion. You can also apply for an OC from the local corporation or municipality as a property owner. If the project meets all of the requirements for approval, you should get a copy of the OC within 30 days after applying. 

As part of your application, you will need to provide the following documents:

  • Project completion certificate.
  • Project commencement certificate.
  • NOCs for fire and pollution.
  • The most recent property tax receipt.
  • A copy of the approved building plan.

This article may be helpful: 5 TIPS TO FIND A HOUSE ON YOUR BUDGET

Who is Responsible for Issuing the Occupancy Certificate?

Under civic legislation, an OC is granted by a competent certifying body and allows the occupation of any property. Local civic bodies, such as municipal corporations, are the ones who issue an OC.

Who is Responsible for Obtaining the Occupancy Certificate?

The builder is responsible for obtaining the OC from the appropriate authorities and making it available to home purchasers.

What are the Risks Involved in the Absence of an Occupancy Certificate?

  • Your building may be demolished if you don’t have a valid OC, as the authorities may classify it as an illegal structure.
  • When applying for a house loan or a loan to buy a resale apartment, OC is important. You can’t even sell your house unless you have a valid OC.
  • If you don’t have an OC, essential services such as water, sewage, and electricity might be turned off.
  • As a result of the above-mentioned instances, it may be deduced that a flat in possession without an occupancy certificate is not a legitimate possession and is equivalent to a rented house that can be evicted at any moment at the discretion of the State Authority.

Hence, a buyer saves himself from all these problems by obtaining the Occupancy Certificate before inhabiting any property.

YOU MUST BE ALSO AWARE OF BASIC REAL ESTATE TERMINOLOGIES TO KNOW BEFORE BUYING A NEW HOUSE IN INDIA

What if the Builder Refuses to Provide an Occupancy Certificate?

You can take legal action against the developer if he refuses to produce an OC or if he hasn’t obtained one even after the project has been completed. You may send him a legal notice requesting the OC, and you can even take the dispute to a consumer court. The Real Estate Regulation and Development Act (RERA), for instance, is intended to reduce overall cases of developer carelessness or fraud. 

However, as a property owner, you must be watchful and ensure that crucial papers such as the OC are in place to protect your property rights.

You may also like to read: HOME LOAN TIPS FOR FIRST TIME BUYERS

How can you check the Status of the Occupancy Certificate?

If a project is registered under the Act, the status of the project may be viewed on the online site of the involved state’s RERA. The RERA requires all builders to update the project’s status on the portal regularly. It can be validated through local authorities or municipal entities if the information is not updated or available on digital portals.

When purchasing flats, take caution (even if the builders are reputed ones). Check out the Building Commencement Certificate. Also, demand that your builder or owner provide you with an Occupancy Certificate (Possession Certificate). If the seller or builder does not have these documents, there is a risk that the structure will not be built according to the authorised plan or local building codes.

If you’re a new flat owner, make sure you have an Occupancy Certificate from your builder before moving in. If you have already moved in, obtain your OC as soon as possible!

Check this article too: THINGS TO CONSIDER WHILE RELOCATING TO A NEW HOUSE

Related Posts

90723 45309

Compare

Enter your keyword