Most of the first time home buyers do not know about occupancy certificate and even if they know; they do not understand the importance of the same. If you are a first time home buyer then you should know the significance of this certificate.
The local planning authority issues occupancy certificate to certify that the building is fit to reside in. Only after proper verification of obedience to safety regulations, building regulations, provision for utilities, the occupancy certificate is issued. After the Completion Certificate is issued by the Planning Authority the builder can obtain this certificate.
There is a difference between occupancy and completion certificate. The completion certificate guarantees that the building construction has been done according to the plan approved by the local planning authority. This certification is obtained by the builder on completion of construction. So, the key difference between both these certificates is that completion certificate shows that the building construction is done as per the plan and after this, occupancy certificate is provided to the buyers so that the ownership of the property can be taken.
Significance of Occupancy Certificate
As per the Indian law, no resident is allowed to occupy the house without getting the occupancy certificate. This certificate is required in order to apply for the services like:
- Sanitation Connection
- Water Connection
- Electric Connection
This document is also required by the banks in order to:
- Apply for a home loan
- Switch your home loan
Documents that need to be submitted to obtain the occupancy certificate:
- Photocopies of Building Completion Certificate
- Photocopies of NOCs from Airport Authority or pollution board
- Building Commencement Certificate
- Photocopy of building sanction plan
- Latest Property Tax receipt
Problems that people face in regards to obtaining Occupancy Certificate
- The buyers who face issues to get occupancy certificate are those who invest in under construction projects. Once the building is completed, you should ask for the occupancy certificate from the builder. In case, he is not ready to give you the certificate; you can go ahead and file a complaint against the builder.
- As the completion certificate is obtained by the builder first they tend to show this certificate to the prospective buyers to sell the houses. In fact, certain builders tend to mislead the ignorant clients by showing them the completion certificate as the occupancy certificate.
- The Occupancy Certificate is written in the local language and if you are not fluent in the language, you should not hesitate to get your documents verified by an advocate.
- People who receive old occupancy application receipt can face a problem when applying for a home loan from banks. OC is usually granted within 1 year time.
- In case the real estate builder dies without obtaining the occupancy certificate; then the society can apply for the same. After the OC is obtained, a penalty may need to be paid by the society.
If you are planning to buy flats in Ghaziabad or in any other Metro city of India, always verify these documents. Apparently, the best way to avoid getting into a mess with these permissions and certificated is buying the property from a reputable real estate developer who always ensures the complete legality of the transaction and also has dedicated legal teams to help whenever you have any issues with these documents.