Important Certificates

Deal Acres

Last Update a year ago

If you own a flat in a high-rise building or have a booking for a flat that is still being built, you should know about the Completion Certificate, Commencement Certificate, and Occupancy Certificate. These are the important certificates that come with real estate transactions.


Since these documents are not needed to register a property, many people who buy homes forget to get them from the previous owner or the builder. But if any of these documents are missing, it could mean that something went wrong with the building plan approval. which could get the buyer in trouble with the local government.

Contents

  1. List of Important Certificates
  2. Commencement Certificate
  3. Occupancy Certification
  4. Why the Occupancy Certificate is Important?
  5. Completion Certificate
  6. What does a Completion Certificate mean?
  7. What will happen if you don't have one of these certificates?

List of Important Certificates

Commencement Certificate

What is a Certificate of Completion?

A local government office gives a developer a “commencement certificate” when they give the developer permission to start building a project. The developer only gets the certificate when the project meets all the legal requirements and has all the necessary restrictions for the building’s plan. If you want to buy a property that is still being built, you must ask the developer for the “Commencement Certificate” to make sure that the project is being built after getting all the necessary permits.


As a homebuyer who has already moved into a house without a Commencement Certificate. you can file a write petition with the Building Proposal Department or talk to the Consumer Forum.

How important is the commencement certificate?


The Commencement Certificate lets you know that you can start building a project. So, you shouldn’t put money into a project if the builder can’t show you a valid certificate. In the case of high-rise buildings, you should also check to see if the Commencement Certificate lists the floor you want to buy on. If you buy into a project before it has a valid Commencement Certificate. you could end up owning illegal property, which could affect your legal title to the property. Also, if a project doesn’t have a Commencement Certificate, it can’t get an Occupancy Certificate.


Also, according to the rules of the Real Estate (Regulation and Development) Act (RERA), you need a real Commencement Certificate. After getting the Commencement Certificate, a project can only be registered with RERA. So, if the project you’re thinking about doesn’t have a Commencement Certificate. it’s likely not covered by RERA, which puts your investment at even more risk.


So, in short, this is an important certificate for the development of a building.

Occupancy Certification

What is an Occupancy Certificate?


An occupancy certificate is a document that a local municipality or building department issues to show that a building is in compliance with building codes and is safe to live in. This is an important certificate that is given out after the authority checks that the building meets certain safety standards and has all the basic amenities. It can change depending on the laws of the State.


How do I get it?


It is up to the builder to get the certificate for a building that isn’t being used. But if you have already moved into the flat without the certificate, you can apply for the same from the local corporation. To apply for this certificate, you must either go to the local corporation in person or go to the website of the relevant corporation and click on the “Building Applications Online” option.

Why the Occupancy Certificate is Important?

One of the most important certificates you need to get from the builder is an Occupancy Certificate. You can even go to court if the builder refuses to give you the Occupancy Certificate or makes you take possession of the apartment without it.

It is illegal to live in a home without an Occupancy Certificate. You will have to go through a lot of trouble to get water or electricity. If you want to get tax benefits from your employer for your home loan, you will need to show this certificate. If a buyer wants to get a home loan from a financial institution, they may also be asked for an Occupancy Certificate.

Legal recourse if builder denies OC

  • If the builder hasn’t told you anything about the OC, you can file an RTI to find out whether or not the builder has taken the OC.
  • For getting the OC, you can send a legal notice to the builder through a lawyer who works with real estate.
  • RERA rules say that a builder has to get the OC before handing over the keys, and if they don’t, a complaint can be filed with a State RERA Authority.
  • If the buyer of a home ever finds out that the builder gave them the keys without giving them the OC. RERA says that the builder should pay the homeowner a fair amount.

Completion Certificate

What does a Completion Certificate mean?

A Completion Certificate is an important certificate that says a building was built according to the Buildings Act’s rules for safety. This certificate tells you everything about the project, from how tall the building is to how good the building materials are.


What is a Completion Certificate?


The completion Certificate shows that the building was built according to all building rules and standards, such as the Floor Area Ratio (FAR), the design and layout of the structure, the quality of the construction, and the distance from the road and other buildings.


The Completion Certificate is a very important certificate for a newly built project. It makes sure that basic services like water, electricity, drainage and sanitation systems can be turned on. In fact, the government only gives water to buildings at the normal price after they have been given a Completion Certificate. Also, if you don’t have a Completion Certificate, you won’t be able to legally own the property.

How do I obtain it?

Important Certificates - Completion Certificate - Deal Acres

The local building authority needs to give this certificate to the person who builds a project or owns property on its own. After doing the necessary inspections, the authority will give the property a Completion Certificate. if it meets all of the Buildings Act’s rules and safety rules. A provisional completion certificate is given if there is still work to be done on the project, but the developer has to give the property to the buyer. This certificate is only good for six months. After that, the builder needs to get the final Completion Certificate.


If the builder hasn’t gotten the certificate, the people who live in the project can form a Resident Welfare Association (RWA) and ask the municipal authority office for the certificate. If the authority doesn’t give the same information, the RWA can take the builder to court for more legal action.

What will happen if you don't have one of these certificates?

The most important certificates for a real estate project are the Commencement Certificate, the Occupancy Certificate, and the Completion Certificate. If any of these documents are missing, it could be very hard for both the builder and the buyer in many ways:


  • If a homeowner doesn’t have any of these certificates, the local building authority can give them the notice to leave.
  • If a building is built without a completion certificate, the development authority or the municipal corporation can charge the developer a fine of up to Rs 50 per sq m, depending on the laws of each State.
  • Without a completion or occupancy certificate, the buyer won’t be able to get a mortgage loan from many banks or claim income tax breaks on the home.


Also, the developer won’t be able to get basic services like water and electricity from the local government.

If these certificates are not given, safety standards for fire safety or being ready for an earthquake are often not met.


Disclaimer: The opinions shown above are mainly for informational reasons and are based on market research. Deal Acres is not responsible for any actions made as a result of relying on the provided material and makes no representations as to its accuracy, completeness, or reliability.

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