Real estate transactions involve verifying plenty of legal documents to ensure the safety of property ownership. Among them, the occupancy certificate is quite significant. It is a validation that the building adheres to local regulations and is completely safe for occupation.
This blog carries important information related to the occupancy certificate, including its benefits, steps involved, required documents, and consequences associated with it.
If you are about to register any real estate property, then ensure the property’s OC is clear and as per the estimated guidelines.
What is an Occupancy Certificate?
An occupancy certificate, also known as a building occupancy certificate, is a legal document provided after a new building construction is finished. It is issued by the planning authority or the local government to certify that safety regulations, approved building plans, and construction norms have been met.
Before granting this certificate, municipal authorities will inspect the site thoroughly and ensure it meets all the prescribed regulations. This certificate is compulsory to avail essential services like electricity, water, and sanitation.
Benefits of Occupancy Certificate
An occupancy certificate is a legal document certified by local authorities. It is proof that the building is entirely safe to use and ready for occupancy.
Here are some significant reasons to avail an OC:
Access to Essential Utilities: An occupancy certificate is essential to obtain electricity, sanitation, and water services. Without this document, securing these basic amenities is quite complicated for residents.
Legality and Safety: An occupancy certificate is a legal document provided by the local government to validate your property. It serves as an evidence that the building is safe to use and ready for occupancy.
Buying or Selling Property: The submission of a valid OC is essential when buying or selling a property. In order to ensure that everything is conducted under legal regulations, it is vital to have an OC.
Loan Approval: The OC certificate plays a significant role if you are planning to obtain a loan. Whether you are purchasing or renovating a home, both banks and lenders require OC as part of the loan approval process.
Legal Ownership: Property tax payments are only be made after securing the occupancy certificate. Obtaining an OC is a primary step for the builder or owner in the property ownership process, which requires certain crucial documents for approval.
Who Should Apply for an Occupancy Certificate?
The primary process begins with the property developer, who needs to ensure that all relevant rules and regulations are adhered to in the building as per the approved blueprints. Once the building is finished, the developer applies to the local governing body.
The burden of getting approval can vary under some circumstances. If it is a large project divided into stages, the developers may apply for a partial occupancy certificate for each finished stage. The completed portions can avail themselves of essential amenities like water, sanitation, and electricity connections. Residents can move into their apartments even though the overall project is still in progress.
An OC can be applied only by developers, not directly by the property owners. When applying, the local authorities will inspect the place before taking action.
How to Get an Occupancy Certificate Online
Usually, the builder or developer of the building is responsible for applying for an occupancy certificate. The process is simple when applying through local government portals and authority websites. Once they have verified all the legal requirements, the OC will be provided. Here are the simple steps you need to follow:
Steps to Apply for Occupancy Certificate Online
Visit the Official Website Address: Every region has an online portal to handle property-related services. Search and access the official local municipal corporation or development authority website.
Log In: If you already have an account, then you don’t need to fill in your details for registration. You can simply log in with your credentials. If you are a new user, then fill in the essentials to register.
Fill up the Application Details: Once logged in, you’ll be navigated to the section for the occupancy certificate where you need to fill in and submit the property-related details, such as the building permit number, property ID, and other relevant information.
Upload Essential Documents and Paperwork: Local authorities require certain important documents to verify, including structural stability certificates, approved building plans, Building completion certificates, and fire safety certificates. Ensure all the required documents are uploaded as mentioned in the portal.
Application Fee: Once the application form is submitted successfully, you’ll be asked to pay the fee online. Use your preferred payment gateway specified by the portal and keep the payment receipt safe for future reference.
Track Status: You can track the application status once the form is submitted. Before issuing the certificate, the local authority may conduct a direct visit to ensure that all the building standards are followed by the prescribed regulations.
Download the OC Certificate: Once the verification is done, you can download the occupancy certificate from the portal. Print the digital copy for your records.
Documents Required for Occupancy Certificate
The following are the most mandatory documents that you need to submit when applying for an occupancy certificate:
- Project completion certificate
- No objection certificate (NOC) for fire and pollution
- Project commencement certificate
- Photographs of the property or building after completion
- Photographs of rain harvesting systems and solar panels
- Building sanction plan
- Tax assessment along with the latest property tax receipt
- Area calculation sheet for each floor, signed by the authorised architect
How to Verify an Occupancy Certificate?
Occupancy certificates protect you from all kinds of financial and legal risks. To verify that OC is valid, you can follow these 3 methods:
Contact your Local Authorities: As stated earlier, OC is certified by the local authority to ensure that the building is safe to use. So, you can visit the urban development or local municipal office directly to confirm your OC’s validity.
Online Portals: You can verify the status of an occupancy certificate through local government portals. By entering your project details, the status will be shown immediately.
Common Mistakes: Be aware of common red flags, including expired documents, missing signatures, and incorrect property details, which can indicate that your OC is invalid.
Consequences of Not Having an Occupancy Certificate
The occupancy certificate is crucial for any new buildings. Without this legal document, owners face consequences in obtaining basic utilities such as water and electricity connections, challenges in securing home loans, and penalties charged by local authorities.
Legal Complications: New buildings without an OC can be considered as unauthorised. Both the buyers and owners are about to meet the legal complications.
Ineligibility for Amenities: Property owners are ineligible to obtain fundamental connections like water, sanitation, and electricity.
Loan Risk: Banks and lenders will ask for documents, including an occupancy certificate, when applying for loans. It becomes difficult to proceed when your property doesn’t have an OC.
Penalties and Fines: Constructions without an occupancy certificate will be considered as a serious concern. Local authorities may impose fines or penalties for no OC, resulting in additional financial troubles.
What is a Partial Occupancy Certificate
A partial occupancy certificate is generally provided to large construction projects for each developed section. Builders can apply for basic utilities and allow people to reside in the completed phase.
Partial OC is a green light for developers to sell and allow residents to move into a specific portion of construction. It is important to note that availing a loan for an entire project is tricky, and it may take time to complete the project and get final approval. To handle such delays, builders and developers can make use of this partial occupancy certificate.
Difference Between Occupancy Certificate (OC), Completion Certificate (CC), and Possession Certificate (PC)
When buying a new home or construction, buyers may tend to confuse the occupancy certificate with the possession and completion certificate. To be clear, we have listed the differences in detail.
| Parameters | Occupancy Certificate (OC) | Possession Certificate (PC) | Completion Certificate (CC) |
| Purpose | The purpose of OC is to ensure that the building is entirely safe for occupancy and ready to use. | Possession certificate is to confirm that the particular property is handed over to the respective buyer. | It is to certify that the building is constructed as per the approved plans. |
| Issued By | It is issued by the planning body or local municipal authority. | It is given by a builder or developer. | Completion certificates can be applied at development authority or local municipal authority. |
| Importance | OC is evident that the building meets all the safety norms and is completely fit for occupation. | Confirms that the construction plans adhere to legal and technical requirements of regulations. | Acts as a proof that the property ownership is legally transferred to the buyer. |
| When Issued | Once after the local authorities verify the infrastructure and confirm that it has met all the estimated guidelines. | After the completion of building construction work as per the approved plan. | Issued after the buyer has settled the payment and takes possession of the property. |
In a Word
Acquiring an occupancy certificate confirms a smooth and secure property transaction. Whether it is a small or large-scale project, OC guarantees the building’s safety, legality, and eligibility for basic utilities. It empowers home buyers to make informed decisions and shows interest in the immediate transaction process.
FAQs
The time period to receive an occupancy certificate can vary for each project depending upon the building plans and complications associated with it. Most commonly, it takes around 30 days from the date of application. If you provide all the essential documents and construct the building as per the approved plan, you will receive it shortly.
To check the status of OC, you can:
Check online: Enter your property details and track your application status online using a local municipal corporation or development authority.
Local Authorities: If you can’t check status online, you can directly contact the local authorities or relevant department.
Visit the Municipal Office: You can visit the urban development or local municipal office to know your OC status.
If your builder or developer doesn’t provide an OC, you can take these steps:
Request the OC
File a complaint
Legal action
Withhold payments
Seek government help.
Avoid occupying the property.