Often documents related to construction are incomplete and misunderstood. There is a constant threat to your dream of living. This article will find the importance, relevance, actual sense, and the meaning of various certificates. These certificates include Completion Certificate (CC), Occupancy Certificate (OC), Possession Certificate (PC), and related documents.
Buying a property and registering the same does not require these certificates. But a discrepancy in these certificates may lead toa declaration. This declaration would be stating your home as unauthorized. You might be evicted within hours, and all your hard-earned money could go in vain. So, let’s decode these certificates to keep your occupancy safe.
Completion Certificate (CC)
In this article
A completion certificate is issued to the builder of the property. This is provided upon the completion of construction by the local civic authorities. It certifies property is fit for possession by the buyer. For this, the construction has to be by the approved building plan and mandatory building standards. The standards include norms like the height of the building, distance from the main roads. Then it is issued within 30 days to the builder. The builder has to pay for this certificate.
A completion certificate is provided by the building control bodies like municipal corporations. An inspector visits the site, looks into the evidence, and then provides it to the developer. It has become a necessary certificate after the National Building Code order in 2005for domestic buildings and flats.
Who Can Apply?
The builder has to apply with the municipal corporations, but the potential buyers need to look for the developer. It is an important certificate for the application of an occupancy certificate. Moreover, it is important for domestic utility connections.
Why Is It Needed?
To ensure the property is built according to building standards. Building standard determines the feasibility of Utility connection like electricity, water supply, drainage, etc. As soon as the above requirements are fulfilled, they are granted to the buyer by the state.
How To Obtain It?
The builder has to submit a proper completion certificate application to the Chief Zonal Officer with the following documents:
- Photocopy of sale deed/lease deed
- Photocopy of approved building plan
- Copy of permission letter
- Photostat of property tax paid up to date if any
- Copy of water tax receipt.
- Copy of underground drainage connection charges
- Copy of electricity cable & road cutting charges paid
If the certificate is lost, then a copy can be procured from the regional authority. But this would come with a nominal fee. If the builder fails to submit a completion certificate, possession of the house is nearly impossible. As the structure would be considered as encroachment, and the state can remove the same. Especially in a flat type system, a buyer must seek a copy of it from the builder or seller.
Occupancy Certificate (OC)
An occupant certificate is issued for the buyers by the local authority. It states that the government has no objection to occupy the property for the specified use. The certificate is only provided when all construction aspects are completed, and the builder holds the completion certificate. It stands as proof for the buyer that the building is constructed following the norms and practices. These practices are enlisted under state law. Once CC is obtained, then only the OC can be acquired.
Also, note that the OC is to be given to the purchaser. It is provided by the local authority when all the supporting documents are verified. Documents include building standards, fire and elevator safety norms, and drainage, so on, and so forth are. Suppose necessary conditions meet, then the certificate is issued legally within 30 days. Moreover, the expenses are to be borne by the seller or the builder.
The occupancy certificate is handed out when the buyer can occupy it. All the domestic guidelines, which include electricity connection, water connection, drainage connection, etc. have been provided by the government as the property has successfully fulfilled the regulations during the inspection of the completion certificate. The completion certificate states the structure is safe as the structure’s material conforms to the country’s ISO code. If a completion certificate is not present, then utility connections can not be provided.
If there are unauthorized extensions of walls, floors even then occupancy certificate can’t be published. If any mishap happens, then insurance claims are also declined. Also, in a random inspection, failure to produce the same may cause discontinuation of the services.
Possession without OC is an offence. You may be asked to vacate the property. You can also be heavily penalized for living in the estate—Individuals can’t further sell that property legally to others. Moreover, before the OC, you can not stay in the property even for a day or so.
It is always suggested not to proceed with the buying and selling of property unless the seller cannot provide OC and CC.
Who Can Apply?
The builder has to get the OC. The same has to be provided to the buyers. Also, the owner can apply for the same given the documents are provided.
How To Get It?
Application form along with following documents to be submitted to the concerned authority-
- building plan approval copy
- building commencement certificate
- building completion certificate
- Property tax receipt
- Photographs of the completed building
- NOC from pollution board etc.
Why Is It Needed?
- To sanction home loans and income tax benefits.
- To provide legal status to your stay in the home.
- To be able to sell the property without much difficulty.
- To save the pain from the legal authorities during an inspection.
There is also a partial occupancy certificate that is issued to the builder. Suppose it is a high-rise building/skyscraper/tower when a certain phase of the project is completed. You can acquire property in that phase. However, it is mandatory to get OC once the project is finalized.
The application form can be found on the site of the respective state.
Possession Certificate (PC)
A possession certificate is issued by the seller ( builder or previous occupants) stating the date and transfer of full possession of the property to the buyers. Once all the legal formalities and payments have been settled on the terms agreed between the two parties, it is provided.
It is required to move into the property and use it. This certificate alone can not guarantee rights over the property. It is to be supplemented with an occupancy certificate. It is issued within 7 days of application.
A possession certificate doesn’t specify that the building is built according to the building codes and guidelines. Neither the connections established are legal. Hence without an occupancy certificate, the possession certificate is just a piece of paper. Under this condition, you possess unauthorized property. You may be evicted from the property anytime. Also, there might be a probability that you are cheated or being cheated.
Who Can Apply?
The buyer has to obtain the certificate with the concerned seller.
How To Get It?
Application form along with following documents to be submitted to the concerned authority-
- Proof of ownership to the property
- Identity proofs like Aadhar card, Pan Card. and Voter Id
- Property tax receipt.
- NOC from the seller.
Why Is It Needed?
- To obtain housing loans.
- To get the subsidiaries provided by the government on house tax.
Difference Between Occupancy, Completion, And Possession Certificate
The difference between Occupancy, Completion, and Possession Certificate
The possession certificate states the date of granting the possession of the property. But doesn’t provide you right over the property. Whereas the Occupancy certificate proofs that the building is fit to be occupied as per legal norms ( Building codes, etc.). OC provides you authority over the property with a fully functioning utility connection.
This certificate is most important in this chain of dealing. Also, on similar terms, a Completion certificate is provided to the builder once the building is completed. It states that the building can now be allowed to have proper connections. These connections are 100% legal, and you would face no difficulties regarding it.
FAQ
1. What is a partial occupancy certificate? Are they good enough to legalize our stay?
Partial occupancy certificate is provided for very high rise buildings/skyscrapers which have their construction completed in various phases. It certifies that you have the right to occupy the flat currently in that phase. But you need to get an Occupancy certificate once the construction is completed fully. The partial one is not good to legalize it. Also, partial ones are restricted within a timeframe.
2. What inspections are carried out for the drafting of the occupancy certificate?
Plumbing, electrical, and building inspections are included in the survey mapping safety of stay with the norms and building codes. Also, it must be following the approved plan.
3. How can I check for the status of the certificate?
You can check the status of any of the above certification by going to the local authority’s websites. Clicking on application status and look for the option of the concerned certificate.
4. What are a temporary occupancy and temporary possession certificate?
These certificates are issued for a period of 90 days. Wherein you are required to make the necessary changes. These changes are asked by the inspector and then apply for a permanent one.
5. What is the typical cost of this certificate?
The buyer can never charge for any of the certificates. This includes a certificate of completion, occupancy, and possession certificate. But if you apply by yourself for the property, then these vary according to the states. the same can be confirmed through the local authority sites.
Conclusion
In the excitement of getting a new home, we tend to overlook some of the documents/certificates. But could endanger our lives and hard-earned money over the years. In today’s world, people try to manipulate you, making you believe many things. That includes only getting the property registered in your name is sufficient to have an authorized possession. There have been cases, especially in metropolitan cities like Delhi, Mumbai, Pune, etc. People have been asked to leave the place as it was unauthorized. Also, there have been cases where buyers were tricked without an occupancy certificate. This endangered lives and sometimes lead to the death of residents. But we, as true citizens, we should take care of our loved one. And for whom we have cherished hard work to have a secure shelter.
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