All set to move-in your own home? Then, take some time out and crosscheck all the documents/paperwork as missing out on even a single paper can land you in soup. Now, you must be thinking about sale agreement, title transfer and registry, but here we are making you aware of a different and important document that is the Occupancy Certificate. Many aspiring home buyers are new to this term and thus this blog post lets you know every detail related to OC alias the Occupancy Certificate.
What Does Occupancy Certificate means?
This document offers legal status to the residential property. According to the Occupancy Certificate the developer/builder had designed the particular housing project according to the approved site plan by the authority and do not hold any illegal encroachment. The OC alias the Occupancy Certificate is essential to avail various civic amenities offered by the local body/authority.
Which Authority Issues OC?
The local authority/body issue the Occupancy Certificate to the first owner of the residential property. This certificate makes you the sole proprietor of that particular housing unit. Every home buyer must ask for this document as this gives you the right to avail all basic amenities and a safe living environment.
List of Document to Obtain Occupancy Certificate
The aspiring home buyer must have below-mentioned documents while applying for an OC.
- Duplicate Copy of Sanction Plan
- Housing Complex Commencement Certificate
- Duplicate Copy of Completion Certificate
- No-Objection Certificate from Pollution Board or the Airport Authority.
- In case of resale property, the Property tax Receipts are also required.
The home buyers are segregated into two categories. Some prospects look for Ready-to-move-in Property and other are interested in the Under-Construction property. But, the Occupancy Certificate is essential for both of them. Hence, we help you know how to apply in these two conditions.
Application Procedure for Ready-to-Move-in Property
- Firstly, an individual home/residential unit owner must approach the Local Authority to obtain the Occupancy Certificate. The owner can apply for the OC by sending a written request to the Flat Owners Association who will forward this request to the concerned authority.
- Secondly, the Resident Welfare Association [RWA] can collective apply for the Occupancy Certificate on the behalf of all residents to the Local Authority.
Application Procedure for Under Construction Property
Here the home buyers must act smartly and ask for the Occupancy Certificate along with the Possession Letter.
Disadvantages of Not Having an Occupancy Certificate
- The housing/residential unit without an Occupancy Certificate alias OC can be demolished by the local authority anytime.
- An Occupancy Certificate is important for both buyer and seller. The owner/person is not eligible for the sanction of homeloan in case of buying a second home if he/she fails to produce this certificate.
- Lastly, the Area’s civic body has the authority to disconnect the water, electricity, sewage and other amenities from your residential unit in case you fail to produce the Occupancy Certificate.
Difference between Occupancy Certificate and Completion Certificate
The Completion Certificate states that the construction of a particular residential unit has taken place according to the norms and regulation laid by the Government. This document further certifies that the developer/builder used the good quality material, maintained pre-defined floor per area ratio, maintained distance from the surrounding building and other details.
Whereas the Occupancy Certificate is issued once the construction of the housing project is completed. This certificate lists your property under the legally constructed homes in the area of the concerned authority.
Difference between Occupancy Certificate and Encumbrance Certificate
The Occupancy Certificate makes you a legal owner of the property and you also become eligible to avail various civic amenities such as electricity, water connection etc. This certificate is issued only after the construction of a residential project/unit is completed.
Whereas the Encumbrance Certificate is a document that showcases the financial liability of the property such as:
- Ongoing Homeloan against Property
- Details of Loan take previously against the property
- Mortgage against property and more.
The home buyer must ask for the Occupancy Certificate and should not make payment of the entire amount to the developer/builder before getting this certificate. This is important as the developer/builder is likely to shed-off his/her responsibility after receiving the complete amount from the property buyer.
*Home Owners have the right to register a complaint against the Builder/developer/seller in Consumer Court for not granting the Occupancy Certificate.