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An Occupancy Certificate is an essential document certifying the construction of the building and that it complies with the local laws, and according to permissible plans. The local municipal authority issues the Occupancy Certificate upon the completion of the construction of the building and is ready to be occupied.
Any owner of the property in the jurisdiction of the local municipal area who has obtained the plan sanction is eligible to get the service of Occupancy Certificate, that includes you, the property owner.
The Occupancy Certificate is obtained from the local authority upon submission of the application form after the completion of the building construction. Usually, the local municipal body issues the Occupancy Certificate within 30 days from the application date. Below is the list of documents that need to be submitted while applying for an Occupancy Certificate:
Occupancy Certificate is an important document which is required before you occupy the purchased house of the project. It certifies that the building construction is complete and adheres to local bye-laws and regulations. The builder/developer is responsible for obtaining the Occupancy Certificate upon the completion of the project. The certificate is proof that the building is safe to occupy, and it is required while applying for water, electricity, and sanitation connections from the local municipal body.
As a homeowner, the Occupancy Certificate is a legal document of the property. Without this certificate, the local authority has the right to initiate legal action as the project is deemed an illegal structure. Also, an Occupancy Certificate is one of the mandatory documents to be submitted while availing a housing loan. Additionally, this certificate is required if you would like to sell the property.
Both the certificates are mandatory legal documents that need to be obtained under the respective state laws. However, here are the differences between the two:
| Occupancy certificate | Completion certificate |
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The builder/developer can obtain the occupation certificate. Also, the owner of the house/flat can apply for an Occupation Certificate.
A homebuyer should accept the possession letter only after the developer obtains the Occupation Certificate.
Under the RERA Act, provisions are made to make milestone-based payments to the builder or developer. A certain portion of the payment from the total amount payable can be paid to the builder; however, the builder or developer cannot claim 100% payment without obtaining the Occupation Certificate.
The Occupation Certificate is one of the mandatory documents required by a bank or housing finance company to extend a home loan. Therefore, if the buyer is looking to avail a loan for the purpose of buying the said property, they cannot apply for a housing loan without the Occupation Certificate.
The local municipal body will issue the Occupation Certificate subject to adhering to the local laws and regulations for the construction of a housing project.
A developer/builder can issue a partial Occupation Certificate when there are phases of massive projects with different completion dates. The local authority can issue a partial Occupancy Certificate for the completed phase or block. Once the entire project is completed, a final Occupation Certificate should replace the partial Occupation Certificate.
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