Residential Real Estate Basics: Why Do You Need an Occupancy Certificate?

An occupancy certificate (OC) is a document that certifies if a building is ready to occupy according to the national building codes. It is a document you need to get when you are buying a new property. The local government agency issues it- such as the municipal corporation. The certificate is proof that the project has been following the building codes’ relevant regulations and laws while it was being built. It is the responsibility of the builder to get an OC once the project is completed.

Apart from understanding what an occupancy certificate is, it’s important to understand its advantages.

Benefits of Obtaining an Occupancy Certificate:

  • It helps the homeowners to have a legal document of the said property.
  • It is a necessary document when applying for water, electricity and sanitation services.
  • An OC is needed when applying for a mortgage loan.
  • It is necessary for a home to attain the legal status of the property.
  • An OC is required while selling or purchasing the said property.

It is also important to remember that property tax is applicable only if the owner or the builder gains an occupancy certificate. Buyers should make sure that the property is RERA certified before making the purchase. An OC is given only if the property is RERA certified and ready to occupy.

How to Get an Occupancy Certificate?

The Builder applies for an occupancy certificate within 30 days of the completion of the project. As a homeowner, you can also apply for the occupancy certificate at the local municipal office within 30 days of completion of the project. If the project withholds the laws and building codes necessary for approval, you can receive the occupancy certificate within a month of applying for it.

There are certain documents you will have to submit to get the occupancy certificate. They are-

  • Project commencement certificate.
  • Project completion certificate.
  • NOCs for fire and pollution.
  • Tax assessment with latest property tax receipt.
  • Copy of the building’s sanctioned plan
  • Area calculation sheet signed by an authorised architect.
  • Photograph of the building after completion.

Legislation like the Real Estate (Regulation and Development) Act (RERA), is in place to oversee the instances of negligence or fraud by developers and builders. However, as a property owner or buyer, you must be sure you are provided with an OC.

What is a Temporary Occupation Certificate?

There is nothing called a ‘temporary Occupation Certificate’ in the system. It is subject to cancellation if it exists. But you can get a ‘partial completion certificate’ for the facilitation of completion of individual towers in a project. Buyers have to keep in mind that once the sanction plan is active, it expires after five years. It can be extended to a maximum of two more years with fines.

What are Competition Certificates and Possession Certificates?

Even if we have a pretty good idea of what an occupancy certificate is now, we can confuse it with other certificates required for a property. Occupation certificate, completion certificate and possession certificate are the 3 basic certificates. A completion certificate certifies that the property is habitable and is issued by the local authorities. A possession certificate is to certify that the ownership of the said property is transferred from the seller to the buyer. If the building is completed according to and in compliance with the plans, a competition certificate is issued which can be used to apply for a PC. Once applied, we can get the possession certificate within 30 days of application.

Ark Real Estate & Infra offers the best luxury homes, with all-around amenities like Wi-Fi, round-the-clock security and a fully equipped clubhouse. Ark Cloud City by Ark Group has received an occupation certificate and is ready to move in and has many projects on their way to make your living experience the best!