Home buying is a difficult task as it involves a lot of paperwork. Thus you must know what all papers are required to buy a legal property here in India. Take a look at another essential document that is the Commencement Certificate which every developer/builder must obtain from the concerned authority.
What is a Commencement Certificate?
The developer/builder obtains this certificate from the local authority to commence construction of his/her housing project in the residential locality identified by the authority.
How Developer/Builder Can Obtain the Commencement Certificate
This certificate is issued by the local authority in a two-phase manner. Thus, the developer/builder must keep all documents handy in order to receive the issued certificate in the least time possible.
- Firstly, the builder/developer is required to submit the project plan of the housing project to the concerned department for which he/she is seeking the Commencement Certificate. After which the authority officials examine the land and are likely to carry out an in-depth inspection of the land if necessary.
- Secondly, the builder/developer is required to produce the clearance papers issued by water, fire, sanitation and electricity department.
- Thirdly, the Commencement Certificate is issued by the concerned official of town planning and engineering departments only after inspecting the plot/land chosen for the construction of the particular housing project.
- After obtaining this certificate for the first phase, the builder/developer has to construct the cementing boundaries of the exact plot/land to avail the Commencement Certificate for the final phase.
What is the Need of Commencement Certificate for Home Buyers?
The home buyers are required to verify various papers related to property and the Commencement Certificate is one amongst all. In fact, the home buyers are at a risk in case they don’t ask for this legal document.
- First of all, the home buyer must ask the builder/developer to showcase this certificate issued by the local authority. We suggest you not to purchase the housing unit unless the builder/developer provides you with CC that is the Commencement Certificate.
- Then, check for your housing unit in the Commencement Certificate as it proves that you are making a fair-deal as the builder/developer constructed this residential unit lawfully.
- Thirdly, you must not make any payment without checking this certificate which is issued by the local authority to the builder/developer as a Commencement Certificate legalizes your dream home.
- Any person owning home in the illegal housing project is booked under law violation and has to pay the fine in accordance with laws.
- This legal document makes you the legal owner of the housing unit and thus you have clear property titles registered with the authority too.
Difference between Commencement and Completion Certificate
The Commencement and Completion Certificates are the two papers related to a property. According to the commencement document, the builder/developer receives authority to start construction of the housing project whereas the Completion Certificate clearly states that the housing project is built according to the laws.
Difference between Commencement and Occupancy Certificate
The commencement certificate is issued by the local authority to the builder/ developer to commence the construction of the approved housing project. On the other hand, Occupancy Certificate makes you eligible to avail basic amenities offered by the local body such as road, water, electricity, sewage and sanitation.
Difference between Commencement and Encumbrance Certificate
The Commencement Certificate is an authorized document issued by the local authority that makes every housing project planned under their jurisdiction legal. Whereas, the Encumbrance Certificate states the liability-status of a property and gives a list of ongoing home loan against this property, mortgage loan taken against this property and more.
After the formation of the RERA Act, every builder/developer is required to register his/her housing project under the act. So, stay alert and don’t finalize the property without checking the RERA details.