Investing in real estate comes with its own set of legalities. While most people focus on finances, amenities, and location, they tend to overlook one of the most essential elements. An Occupancy Certificate or OC – A legal document that certifies your property is safe and ready to occupy. It protects your purchase by ensuring it has been completed according to the set plans and layouts.
If you are a first-time buyer or a seasoned investor, understanding the importance of OC will help you manage your property rights. In this blog, let’s break down the importance of an OC and why it matters.
What is OC’s full form, and what does it mean?
OC’s full form in real estate stands for Occupancy Certificate. It is an official document issued by the building or municipal authority after the construction project is completed. This certificate ensures that the construction done is compliant with the approved building plans, local legislation, and safety standards for a safe possession.
In general terms, an OC verifies that your building is fit for staying and is legally constructed. It helps the infrastructure confirm its supplies for all utilities like water, electricity, sewage, and fire prevention systems. Without a valid Occupancy Certificate, the building is considered “unauthorised for occupancy”. This means the residents can face legal actions and even get denied basic amenities.
Who Issues the Occupancy Certificate?
Such legal documentation is issued by local authorities. It can be a municipal corporation or a local civic body. Once the construction is completed, the builder must apply for the OC. The process starts by submitting all necessary documents after project completion.
Documents Required to Apply for OC
To obtain an Occupancy Certificate, several documents concerning the property must be submitted. These documents can include:
- Building Completion Certificate
- Approved plan and layout
- Photographs of the completed structure
- No Objection Certificates (NOCs) for utilities
- Sewage connection approval
- Tax receipts
The concerned local authority conducts a physical inspection of the property after the documents are successfully submitted. If everything meets the required norms, the certificate is granted.
Why is an Occupancy Certificate Important?
Having an OC is a legal necessity. It is required to be issued by the developer, well before the building is opened for residents. Under the Real Estate Act 2016, the status of the building will be updated on the RERA website, enabling potential buyers to cross-check the listing before their purchases.
-
Legal Validation
OC legally validates properties and ensures its structure has been accepted, and the property complies with the local legislation. Without OC, the building can be deemed illegal.
-
Essential for Utility Connections
Local civic bodies require a valid OC to connect a building with utility supplies. Without one, your construction may have to rely on temporary or unauthorised connections.
-
Required for Property Resale
If you are an investor, you need a valid OC to resell your property. It boosts buyer confidence and ensures smooth property transactions.
-
Crucial for Home Loan Sanction
Many banks also rely on occupancy certificates for property verification. If the OC is not valid, your loans might not be approved, as it is seen as a sign of legal discrepancy.
-
Avoiding Penalties and Eviction
Under municipal regulations, it’s illegal to occupy a building without an OC. In such cases, they can impose fines, disconnect utility connections for the building, or, in major cases, order eviction.
How to Check for an OC?
If you are a potential investor or a buyer, you can check if the building has an OC. Prioritise the right documentation and check as follows:
- Ask for a copy of the occupancy certificate from your builder or developer.
- Verify the document from the local government body.
- Check the property’s status online on RERA’s website.
- Always verify before finalising your purchase from a legal consultant.
How to Apply for an Occupancy Certificate?
If your property doesn’t have an OC yet, follow the steps to apply for one.
- Approach your builder or housing society to apply for an OC.
- Submit all necessary documents and NOCs to the local municipal authority.
- Partake in physical building inspection visits by the authorities.
- If your building is deemed unsatisfactory, necessary changes can be made, and then the certificate can be reapplied for.
In case of no support from the builder during the process, residents can contact local authorities.
Conclusion
To make your properties legally safe and comply with the authorities, an occupancy certificate is highly essential. Before finalising your future investment, ensure your builder has a valid OC for the construction. If you are interested in owning your own property, verify the essential documents beforehand for a stress-free purchase.
Vast choices and complex property selection can be made easy with the right help. With SmartKey Realty, find expert property consultations and verified listings for complete property assistance.
