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  • Commencement Certificate

    The Commencement Certificate, issued by the concerned authority permitting the builder to commence the property construction, subject to meeting all set criteria, is known as commencement certificate. Generally, the certificate is issued by local authorities and it’s mandatory to possess the certificate of commencement to begin the construction of the property.

    Who Can Apply for the Certificate of Commencement?

    The builder/developer who has obtained plan sanction of the said property can apply for the certificate of commencement.

    Documents required

    The builder/developer needs to submit the application for the Commencement Certificate with the below list of documents:

    • Latest tax paid receipt.
    • Photographs.
    • NOC from required government departments.
    • Concerned property documents.

    Steps to Obtain Certificate of Commencement

    Local authorities issue the Commencement Certificate by considering the below criteria:

    • The builder or developer should submit the plan of the project to the concerned local authority as officials inspect the property and carry out inspection.
    • Along with the project plan, the No-Objection Certificate (NOC) received from several government offices like fire, sanitation, water, and electricity departments are required to be submitted to the local authority.
    • Usually, the certificate is issued in two stages – first when the construction is up to the plinth area and the second for the superstructure.

    Planning and Procedures for the Issue of Commencement Certificate

    The planning and procedure for issuing the commencement certificate can vary between local authorities; however, the general procedure is:

    • The local authority will receive the application along with a plan drawn to scale of 1:100 reflecting the actual dimension of the land, schedules of the land, the size of the proposed building along with the position of the building upon the plot accompanied with required documents.
    • Upon the receipt of the Commencement Certificate application, the local authority will issue an acknowledgement receipt.
    • The application and the documents will be verified to check if the proposed building adheres to local bye-laws and regulations.
    • After the verification, the concerned authority may reject or grant the Commencement Certificate.
    • If the local authority finds the submitted building plan is in accordance with local regulations and plot records, applicants will be asked to remit the prescribed fees.
    • The concerned local authority will issue the Commencement Certificate once the applicant remits the applicable fees.

    Importance of Commencement Certificate

    As a home buyer, it’s essential to check all documents related to the property before you choose the ideal house/flat. Here are a few important aspects of the Commencement Certificate.

    • While buying a residential property, the absence of the Commencement Certificate can be an indication that the property is illegal, or the property is under dispute.
    • The certificate ensures the property has clear title, dues, and approved clearances by several government offices.
    • The certificate has the list of the floor or the unit you might be planning to purchase. If the unit or the floor is not mentioned in the Commencement Certificate, then you can consider the specific unit is illegal or under dispute.
    • The Commencement Certificate can save you from legal consequences as local authorities have the right to penalise you who is a resident or the owner of the illegal property.

    FAQ’s

    1. Can you choose the project in the absence of the Commencement Certificate?

    No. If the Commencement Certificate is not available, it suggests that the property could be illegal, or the property is under dispute.

    2. What if I have purchased a property without the Commencement Certificate?

    The property owner is responsible, and the property can be considered illegal. The local authorities can penalise the owner with fines as the per the law.

    3. What’s the difference between a Commencement Certificate and an Occupation Certificate?

    While the Commencement Certificate is issued to start the project construction as per the plan sanction, an Occupation Certificate is issued to enable the owner of the property to enjoy amenities offered by the local municipal body like roads, sanitation, water, electricity, and water.

    4. What’s the difference between Encumbrance Certificate and Commencement Certificate?

    The Commencement Certificate is issued authorising the builder/developer the begin the process of construction under the RERA Act, while an Encumbrance Certificate reveals if there are any liabilities associated with the project such as any existing loans.

    5. What’s the difference between Completion Certificate and Commencement Certificate?

    Local authorities issue the Commencement Certificate authorising the developer/builder to start the construction of the project, while the Completion Certificate, also a legal document, confirms the particular property is complete and the structure does not violate any rules and regulations set by the government.

      

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