Importance of Occupancy Certificate When Buying a House

In the fervour of acquiring a new home, one may want to inhabit the house swiftly, revel in the company of dear ones, and hire decorators to style the space. However, it is imperative first to prioritise a crucial administrative step — obtaining the Occupancy Certificate (OC).

This seemingly mundane document holds substantial importance for homeowners. This article will explore the importance of OC in real estate.

What Is OC in Real Estate?

An Occupancy Certificate (OC) is a crucial legal document issued by a government agency or local development authority. This certificate serves as official confirmation that a newly constructed property fully complies with the national building code and is deemed safe and suitable for residents. Whether one intends to use the property themselves or seeks to sell it, the presence of an OC certificate is imperative for any property transaction. >The OC certificate is also a prerequisite for obtaining essential utility connections such as water, sanitation, and electricity. That is why all homebuyers should know OC’s full form in real estate.

Documents Required for Obtaining an OC Certificate

Here is a list of documents needed to get an OC certificate:

• A copy of the sanctioned building plan
• Copies of No Objection Certificates (NOCs) obtained from relevant authorities
• Commencement of construction certificate
• Property tax slips

How Can One Get the OC?

It is the responsibility of the property developer to secure an OC certificate for the building upon the project's completion. One must apply to the local municipal development authority overseeing the property. The process of acquiring an OC involves several steps:

• Submit an Application :

  The builder must apply to the local housing board or the relevant authority.

• Provide Supporting Documents:

  Alongside the application, the builder is required to furnish all necessary supporting documents.

• Pay the Requisite Fees :

  The builder must submit the relevant fees to the concerned authorities.

• Inspection Visits :

  An appointed officer conducts a thorough inspection of the construction site to ensure compliance with prevailing building norms.

• Issue of NOC :

  The nodal officer will issue an NOC for the property upon satisfying the criteria and standards.

• Submission of NOC :

  The builder must then submit the obtained NOC to the authority's office to receive the final Occupancy Certificate.

How Can One Check the Occupancy Certificate Online?

To check the occupancy certificate online, one can follow these steps:

1. Visit the RERA website:

Individuals can visit the RERA website, where all builders are obligated to update the status of their projects regularly.

2. Project registration:

Users may verify the OC status by accessing the relevant state's RERA webpage if the property is registered under RERA.

3. Online verification:

Search for the specific project and look for the OC details online.

4. Contact local authorities:

If the OC information is not available on the RERA portal, individuals can reach out to local authorities directly for the required data.

Importance of OC

An OC signifies that a building has been constructed in compliance with building bylaws and regulations, assuring the safety and legality of the structure for occupants. It differentiates between a lawful property and an unlawful one. Without an OC, the erected structure may be subject to legal ramifications.

Failing to secure an OC can have severe consequences. Local authorities possess the power to take actions such as eviction of residents and even demolition of the property due to its illegal status. This not only disrupts the lives of occupants but also hampers the property's resale value and loan approval processes, affecting both buyers and sellers.

Additionally, the absence of an OC can lead to disruptions in essential utility services, with water and electrical supplies potentially being disconnected without prior warning. Obtaining necessary certificates like the Khata Certificate can also become challenging, complicating property ownership and transactions.

Difference Between OC and CC

The distinction between an OC and a Completion Certificate (CC) lies in their core functions. A CC serves as confirmation that a building adheres to building bylaws and that its layout plan has received approval from relevant authorities. Conversely, an OC signifies that the construction complies with all building norms without violations, rendering the structure safe for occupancy. Upon issuing the completion certificate, the occupancy certificate (OC) is provided. Once the OC has been granted, the builder can only transfer ownership of a flat to the buyer.

Conclusion

An OC is not just a piece of paper. It represents the safety, legality, and compliance of a property. Property buyers and investors are strongly advised to prioritise the acquisition of an OC certificate before taking possession to avoid unnecessary legal disputes and potential financial setbacks in the future.

Knowing the OC and CC’s full form and their differences can help homebuyers make informed decisions.  But all these verifications become a lot easier if someone buys from trusted real estate developers like Piramal Realty. Piramal Aranya by Piramal Realty, located in the heart of South Mumbai, is an excellent choice for people wishing to purchase a luxury home. Also, Avyan Tower in Piramal Aranya has received OC 21 months ahead of the Maha Rera timeline. It is the benchmark for people seeking genuine luxury and sophistication.

Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim /disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.