Importance Of Occupancy Certificate (OC) - A Complete Guide

What is Occupancy Certificate (OC) - Namma Family Builder
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What Is OC (Occupancy Certificate)? OC Full Form:

The full form of OC is “Occupancy Certificate“. OC is an important legal document of a property. The government agency or building department, such as the municipal corporation, issues this OC after the construction of a building is complete.  The relevant authority conducts a thorough examination before issuing an  OC. The OC indicates that the building is safe to live in and meets applicable building codes and other laws. And also indicates the building is ready to be occupied.

Since 1976, the OC becomes a mandatory. And it has been well recognized by real estate development in cities.

Every prospective buyers should necessarily check OC. And should ask for this OC from the builder or seller. If the occupancy certificate for a house is not available with the  builder or seller, then it is advisable that individuals should refrain from buying the same

The OC is the final approval from the government that the house is built legally and is safe to be occupied. It is advisable that the people should refrain from buying house without OC.

The List Of Documents To Be Submitted For applying for an Occupancy Certificate

The builder/developer is responsible for obtaining the OC upon the completion of the project. The following documents have to be submitted to the municipal body while applying for an OC

  • Duly filled application form
  • Copy of the sanctioned plan
  • The Project Commencement Certificate.
  • The Project Completion Certificate.
  • No Objection Certificate (NOC) for pollution and No Objection Certificate (NOC) for fire.
  • Architect-approved area computation sheet of the project / floor duly signed by an architect. (Calculation sheet of the floor area).
  • Built and section plan of the project.
  • Photographs of the completed project with pictures of solar panels and rainwater harvesting.
  • Property tax bills – Latest tax paid receipt with the tax assessment.
  • A certificate of structural stability of the building/project. The certificate obtained from a structural engineer.

The Check List of OC Issuing Authority

The relevant authority of municipal municipal corporation conducts a thorough examination. Then they issue an OC. The relevant authority ensures the following

  • The proper adherence to legal and approved construction plans
  • The perfect compliance with the building codes and
  • The availability of essential amenities, such as drainage and electricity
  • The acquisition of all needy and necessary clearances, including the fire department’s

The adheres to local bye-laws and regulations are thoroughly checked. Then the OC is issued within a month time.

The relevant authority declares that the building is constructed as per the plans. Those plans were approved by the concerned authorities in the OC Certificate.

This OC also indicates that the building is equipped properly with civic needs. (such as sanitation, water, and electricity).

Occupancy Certificate Online Checking Process

The following steps are to be followed to check an Occupancy Certificate online in India

  • Visit the official website of the local municipal corporation or the official website of the authority where the property is located.
  • Search for the “Building Permission” or “Building Proposals” section on the website.
  • Choose the option for “Occupancy Certificate” or “OC” from the list of services provided.
  • Enter properly the required property details, such as address and application number.
  • Submit the correct information in the above mentioned order to view the results.

The people can download the certificate directly from the website.

The Importance of Occupancy Certificate

Occupancy Certificate is an important document.  The certificate

  • Ensures that the building is safe to occupy,
  • Necessary while applying for water, electricity, and sanitation connections from the local municipal body.
  • For the purpose of availing a housing loan. It is a mandatory documents to be submitted while getting a housing loan.
  • It enhances transparent real estate transactions is a mandatory document required if you would like to sell the property.
  • Having an Occupancy Certificate provides peace of mind to the buyer. The buyer is happy that the building meets all safety and regulatory standards.
  • It assures that the buyer is not at risk of facing legal or safety issues related to the construction of the building
  • Once occupancy certificate is issued for a project, no gst is applicable on it.
  • VAT and Service tax were not to be charged after receipt of oc

The Problems To Be Faced Without this OC Certificate,

If the builder is not able to obtain this document from the concerned department, then it means that building is deemed to be built by violating the norms and plans. And also building is not equipped with the civic amenities and is probably not constructed in accordance with the plans that were approved by the concerned departments.

If a residential property with no occupancy certificate is bought, then

  • Govt can send you a eviction notice.
  • A legal action can be initiated by the authority as the project is deemed an illegal structure.
  • The civic amenities, such as electricity and water supply can be disconnected anytime.
  • The resale of the house is impossible.

Things To Be Done if the Developer Does Not Give an OC

Verify authenticity Through the RERA Portal

If the new construction is registered under the RERA Act, the people can verify the authenticity of details on the certificate of occupancy on the official website. The RERA Portal can be used to verify its Authenticity.

Check with Municipal Body

If it is not possible to obtain information from the RERA site, then speak with the local municipal body. (in charge of providing the certificate of occupancy directly). The buyer can get an update on the procedure and find out why there has been a delay.

Payment of Penalty by The Owner

Regularization will be allowed on the payment of penalty by the owner.

Lodging a Complaint with the Consumer Forum

If the certificate of occupancy is not available due to inaction of the developers, homeowners can complain to the consumer forum. The respective authority will guide the developer to get the required certifications. The buyer can claim compensation in the consumer court if developer delayed the process. The compensation can be a simple interest at 6% per annum, or a complete refund under the RERA regulations.

Registering a Complaint with RERA

For projects registered under RERA, the buyers can file a formal complaint with the state’s RERA authority. RERA has the authority to investigate and fine the developer who had violated the rules.

Consulting a legal professional

When facing such situations, a lawyer can guide the most appropriate course of action. The action is based on the specific circumstances and local legal framework.  A legal notice can be used directing the builder to obtain an OC.
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