In this Article, we are going to know what are Occupancy Certificate (CC) & completion Certificate (OC) ? What is the difference between Occupancy Certificate & Completion Certificate? Why do we need this Occupancy Certificate and Completion Certificate And in what way we should take the possession correctly If we invested in an under-construction property?
When we invest in an under-construction property, we should know about the Completion certificate & Occupancy certificate Otherwise, chances of fraud also increase In today’s date, many court cases are going on. Some property buyers didn’t get his possession or completion certificate of property Some properties didn’t have an occupancy certificate So in this way, it would have become very difficult to sell a property like that So in this Article, I am going to talk to you in detail that what are these two certificates How do we get them, what a complete process of it And in which way you have to take possession of the property, in a right way.
So whenever a builder wants to construct a property or a building, then he has to follow a lot of regulations, Such as even if the building is bylaws, there is a master plan of a city, there is a development code and so on. There are different types of regulations, there are regulations of fire and safety, regulations related to the environment So all these regulations have to be followed and for this, the plans have to be approved by the local authority. What authority is this now, it can be a municipal corporation in a state, a development authority within a state or Maybe a town and planning department So it varies from state to states. So now if we want to well understand the concept of occupancy & completion certificate, Then we should know all about the process, how the building is constructed. How to approve a plans I quickly explain the process, during this process you will also understand both the concepts as well.
So now if we want to well understand the concept of occupancy & completion certificate, Then we should know all about the process, how the building is constructed. How to approve a plans I quickly explain the process, during this process you will also understand both the concepts as well.
So what happens first when a building is constructed The builder has to submit the building plan to local authorities What plans are they, this is structural plans, service plans, for water supply for sewerage disposal, electrical supplies or for gas supply Your fire and safety plans There is a disaster management plan If there is a high rise building.
When these plans are submitted with authority, the authority study them after it gives a building permit to a builder And the construction time of 3 to 5 years.Are being given to complete it.
So, the builder has to do construction completion in 3-5 years And if don’t do construction completion on time Then, he has to take a revalidation certificate again. Let’s say, it is valid for 1 year & he extended the completion time, so, according to the revalidation certificate He has to complete the construction in another year.
When that construction is completed Then after that, this completion certificate is issued The completion certificate is issued by authority when the authority ensure there that the building is constructed according to the approved plan. All the regulations are followed for example ground coverage, floor area ratio, setbacks you have, leave proper open space. You followed height restrictions properly or how many numbers of floors can be made ,The number of units properly made suppose if 100 units is approved for the plan ,They have made 100 units only, no extra units have been made If parking stands are properly followed When all these things are ensured only after that the completion certificate is issued by the local authority. And suppose some regulations have not been followed and the substantial competition has been done for the building ,Then in that case the authority which is there can also give provisional certificate to the builder Provisional certificate which is generally valid for 6 months In that provisional certificate Let there is duration 6 month, In that time period The builder has to complete all the constructions and comply with all the regulations After this, he gets the final certificate.
Once the builder gets the completion certificate, he has to take the occupancy certificate And to get the occupancy certificate. He has to submit some additional documents to the authority. In which you have an As-Built plan, some sort of the final built drawing has to be submitted Then you have to take NOCs from the Fire Department From the Airport Authority of India, the Pollution Control Board, From the Electrical Inspectorate And suppose there are some green building norms inside a city by building bylaws. It is also necessary to follow If there are some regulations of rainwater harvesting, waste water management Or any solar panel installation, then they are also ensured by the authority Before that occupancy certificate is not issued. The builder has to submit the receipts of labour cess to the authority He has to submit the receipts that he pays all due & taxes. After that when the authority ensure all this A physical inspection happens that All the buildings or services Have been built on as per the plan When all these things are ensured After that, an occupancy certificate Is given to the developer Occupancy certificate can also be given to the owners In some cases, possession is given immediately after the completion certificate And the owner itself apply or occupancy certificate Occupancy certificate is granted only after when all the safety & structural norms are followed.
when we get the completion & occupancy certificate?
If we have to do a quick recap, when we get the completion & occupancy certificate? When it is ensured that the building is Constructed according to the approved building plans And all the building bylaws and other regulations are followed, Then we get the completion certificate And we get the occupancy certificate when a building is considered safe to use or safe to occupied Basically, it has all the basic amenity As per the building plan, like power, water, sewer, gas. And all the fire & safety norms, environmental safety norm And norms airport authority of India All of these were followed And all duties and taxes have also been paid by the builder, To the authority. So I think you understand from this process That what is a completion certificate And what is an occupancy certificate what is the difference between them.
what we need Occupancy Certificate & completion Certificate ?
And now we need to know that for what we need this two certificate ,Then we need to know one more thing suppose we get a completion certificate of a building But the occupancy certificate has not yet been received Suppose some correction is still required Then what happens in that case the authority gives an Intimation of disapproval to the building and gives some time Period within which corrections can be made When If the builder makes that correction after that occupancy Certificate is issued by the authority Either to the developer or to the owners directly.
why occupancy certificate and completion certificate is so important?
So now we know why occupancy certificate and completion certificate is so important in this, Why it is needed….
- Then the first reason inside it is that it provides safe and legal possession to your property Only when you get the completion certificate occupancy certificate of them Otherwise, it will be considered as an unauthorized construction according to the authority.
- Second, you need both these certificates To apply for the electricity water connection.
- And you can claim income tax benefits when you have a completion certificate Because if you don’t have to show possession legally, Then you can’t claim income tax benefit.
- Insurance is given to you when the building is considered to safe to use And this safety will be ensured only when you get the occupancy certificate.
- Apart from that, there is a very important reason that if the authority Wants, it can even remove you from the building Because it is an unauthorized construction in a way. If the authority has not given him the completion certificate occupancy certificate Assume that it is not safe to occupy the building or not a legal Then the authority can also give you an eviction notice So to avoid this is the situation, it is very important to apply for C.C or O.C
- If you want to sell your property then Also completion certificate Occupancy certificate becomes very important Any Buyer will definitely ask you for both these certificates Because otherwise you will not be considered as a legal possession of the property Maybe you occupy it or use it but Selling will probably be difficult for you.
I think you must have understood how much is important of these two and for what Now we have to see that suppose You have not got the completion certificate Occupancy certificate.
due to some reason But still, you may have taken the possession Then what can you do in that case, Then let’s say your building does not get a completion certificate occupancy certificate, In this case….
- You can hold the final payment to the builder generally In any construction linked plan, final payment is done after possession By them the completion certificate would not have been obviously received by the builder. You can stop the final payment.
- Secondly, if you don’t take that possession it is better without a completion certificate Because it is not considered a valid Ideally, you should not take possessions without the completion certificate, you should ensure that You take possession after the builder get a completion certificate.
- After that, you need to make a group of owners or get a Resident Welfare Association registered. You can represent your group very easily in front of the authority or in front of the builder And it will be easy to fight against the builder’s. Let’s say for some reason If the builder does not apply for a completion or occupancy certificate So, in that case, you can directly approach the local authority.
- As a group or as a resident welfare association If the local authority tells the group or resident welfare association to make corrections, Then you can make the corrections by yourself or you can force the builder to remove shortcomings & give the penalty And if you think that builder can’t do it, then you can do it as a group & submit it to the local authority.
- If something is left in a building & authority tells you to pay a penalty, then you can pay it as a group & apply for the certificate If you, as a group are cooperating with the builder but he is not doing the same Then, you have a Legal recourse. You can claim damages from the developer You can legally claim the expenses of the shortcomings & corrections from the developer.
So these are when there is a shortcoming, you don’t get the CC or OC to your building So how can you do these corrections as a group or how you can apply for OC & CC as an RWA or owners’ group Now we will see….
how to take possession of any under-construction property in an ideal situation?
how to take possession of any under-construction property in an ideal situation?
Firstly, you should ensure to take the completion certificate, it is better to take possession after getting the certificate.
Then, it is important to ensure the Occupancy certificate Ideally, it is better if the builder applies for both of these certificates When we ensure that the builder has taken the CC & OC.
Sale deed registration
then do the sale deed registration & take possession of your property