All You Need To Know About Occupancy Certificate
Last Updated on, August 27th, 2024
An occupancy certificate is a critical legal approval for any completed building issued by the local civic body. It certifies that the building is now ready for occupancy and has been constructed as per all the approved plans and in compliance with the local laws.
Obtaining an OC is a mandatory requirement that ensures the safety and legality of the property. OC is typically issued after the construction of the building.
Importance of Occupancy Certificate
OC is an important legal document that authorizes the safety of the property. OC serves as a proof that the construction of the building is complete and it has adhered to all the local rules and regulations.
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Housing Loans
OC is needed for verification whenever you opt for home loans from banks and other financial organizations.
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Access to Basic Facilities
OC is needed to get basic facilities like electricity and water. Without an OC, your building may not get these basic facilities.
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Legal Requirement
OC is a legal document that certifies a building’s compliance with safety standards. The property is not fit for occupancy if it does not have an OC.
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Ensures Safety
OC confirms that the building has been constructed according to approved plans and adheres to safety norms, ensuring the safety of residents.
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Prevents Legal Troubles
Occupying a building without an OC can lead to legal issues, including fines or eviction.
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Resale Value
Buyers always prefer building with an OC as it assures that them building is legal and safe. Hence, having an OC increases your resale value. A property without an OC can be difficult to sell.
Note – Older buildings may not have an Occupancy certificate, but all new developments must have an OC
Who Can Apply for an Occupancy Certificate?
It is a developer’s responsibility to get the occupancy certificate and make it readily available for the future homeowners. In Maharashtra, the Municipal Corporations, Councils, Local Approving Bodies issues the occupancy certificate.
How to Get an Occupancy Certificate?
OC is issued after a thorough inspection that verifies that the building adheres to the approved plans and meets necessary standards. Partial OC can be granted for mixed-use projects, allowing the sale of completed sections. The OC is crucial for confirming legal ownership and should ideally be applied for within 30 days of project completion. If the property fits all the criteria with proper documentation, an Occupation certificate can be obtained within 30 days of application submission.
Documents Required for Occupancy Certificate
- Completion certificate
- Commencement certificate
- NOC from the fire department
- Photos of the completed construction
- Building & sanction plan
- Project completion certificate
- Area calculation sheet of floor signed by an authorised architect
- Tax assessment along with latest property receipt.
How To Check the Occupancy Certificate of a Property?
According to RERA, it is mandatory for all the builders to update the status of the project regularly on the RERA portal. If your property is registered under RERA, you can check the occupancy certificate online on the web portal of the respective state’s RERA. Read our article on how to check the RERA details of a project.
If you’re not able to find the OC on the RERA portal, you can directly reach out to the local authorities to know these details.
Difference Between Occupancy & Completion Certificate
| Occupancy Certificate | Completion Certificate | ||
|---|---|---|---|
| OC certifies that the building construction is in line with the approved plan and it can be occupied now. | Completion certificate certifies that the construction of the property is complete and it adheres to all the rules and regulations set by the Government. | ||
| An occupancy certificate authorizes the house owner to legally stay in it. | A completion certificate does not allow the owner to stay in it. An OC is a must-have approval to possess or occupy the flat. |
FAQs
You can pay a certain portion of the payment from the total amount. However, you should not make full payment to the builder if he has not yet obtained the occupancy certificate.
If your property does not have an OC, there are chances that it can be considered illegal. If the buyer of the property is looking to avail a home loan, OC is one of the important documents to submit. It’s essential to have an occupancy certificate if you wish to sell your home. However, you can even sell it without an OC on mutual understanding, but you may not get the best rates.
Note – Older buildings may not have an OC in Mumbai
Fit out possession or soft possession is given to home buyers by developers typically once the construction is completed and while the OC application is in progress, primarily so that the home buyer can start their interior work and move in once quickly the OC is received. Fit-out possession does not entitle a home buyer to start living in the apartment. An occupancy certificate is mandatory before residents can move in. Occupancy certificate provides a legal recognition for occupying a property. With OC in place, you get access to basic facilities like electricity, water, sanitation and other essential facilities.
Bottom Line
Occupancy certificate is one of the most important approvals of a project. As a property owner, you should check that the property you buy has an OC. At Marathon, we are committed to transparency and share all the essential details of our projects upfront.
