Occupancy Certificate & Why is it Necessary?

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Occupancy Certificate & Why is it Necessary?

Newest information on occupancy certificates

DeveloperswithoutaNOCmaynothavetheiroccupancycertificatesrevokedby MCs.

May 2023: Inarecentdevelopment,itwasnotedthatadeveloper'soccupancy certificatecannotberevokedbyamunicipalcorporationifthedeveloperisunable togetaNOC.ThischoicewasmadefollowingadisputebetweenNaviMumbai MunicipalCorporationandMumbaidevelopers.TheCityandIndustrial DevelopmentCorporation(CIDCO),whichislocatedinMaharashtra,iswhereone canreceivetheNoObjectionCertificate(NOC).Thecommencementcertificatewill likewisebesubjecttothesamerule.

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TheBombayHighCourtalsoruledthataCommencementcertificateoran occupancycertificatecannotberevokedundertheprovisionsofSection51ofthe MaharashtraRegionalTownPlanningAct,1966(MRTPAct),despiteabreachofthe certificate including,butnotlimitedto,thefailuretoobtainaNOCoraletterfrom agovernmentagencystatingthatnomoneyisowed—oranyotherviolation.Evenif anauthoritydecidesitisappropriatetorevoketheOC,theyareunabletodosoonce theprojecthasbeguntobedevelopedorbuilt.

Occupancy Certificate

Theoccupancycertificateisviewedasasignificantdocumentwhenbuyinganew housesinceitensuresthatthehousewasconstructedinlinewiththerelevant regulations.Let'slookatwhyobtaininganoccupancycertificateisnowrequired.

Anoccupancycertificate(OC)isalegaldocumentthatagovernmentagencyorlocal developmentauthorityissuestoconfirmthatabuiltpropertycomplieswiththe nationalbuildingcode&issuitableforoccupancy.OCisnecessaryforaproperty transactionregardlessofhowthebuyerintendstousethespaceoriftheywantto sellit.

Thefollowingfactorswereexaminedinordertoprovidetheoccupancycertificate:

 Ifthebuildingwasbuiltinaccordancewiththeapprovedplanandthelaw

 Hasthestructurebeenbuiltinaccordancewiththebuildingcode?

 Ifithasalltheessentialamenities,suchaselectricityanddrainage.

 Ifallnecessaryapprovals,suchasthefiredepartment'sNOC,arereceived

How is an occupancy certificate obtained?

ThebuilderordeveloperofthepropertymustsubmitanapplicationtoOCtogether withthelocalmunicipaldevelopmentauthority.Theinspectionauthoritywillonly grantthecertificateafterbeingsatisfiedthattheprojectwasconstructedin accordancewiththestatutoryrequirementsandtheapprovedconstructionplan. However,inothercircumstances,thecontractormayacceptonlyaportionofOC& sellownership.Forinstance,abuildingcontractorispermittedtoacquirepartial OCsofpartiallyfinishedhousingcomplexesandtransferownershiptotheownersof theflatsinconstructionprojectswithmixeduses.Thebuyermustthereforeacquire thepapersinorderforpossessionofthepropertytobelegallyestablished.

What documentation is needed to receive an occupancy certificate?

TheMunicipalCorporationshallreceiveanOCapplicationfromabuildernolater than30daysaftertheprojectisfinished.Buildingsthathavedisregardedapproved buildingplansandhavesomedesignchanges,however,arenoteligiblefortheOC. Thefollowingsetofdocumentsisnecessarytogetanoccupancycertificate:

 Areplicaoftheauthorisedbuildingplan

 CopiesofNOCdocumentswereobtainedfromtheairportauthoritiesand pollutionboard.

 Acertificateauthorizingthestartofbuilding

 Latestorupdatedpropertytaxslips

 Whathappensifyouinhabitthestructurewithoutacertificateofoccupancy?

 Theerectedstructuremaybedeemedanillegalbuilding.

 Theresidentsmayberemovedatthelegalauthorities'discretion.

 Duetoitsillegalstatus,thebuildingmaybedemolished.

 Loanapprovalandpropertysaleswillberestricted

 Waterandelectricitysuppliesarecutoffwithoutwarning.

 Thepropertywillbesubjecttoafine,whichwillresultinariseintheamount owedinpropertytaxes.

 ObtainingaKhatacertificateisaproblem.

Partial Occupancy Certificate: What Is It?

ThepartialOCismostprevalentinhugedevelopmentplanswherebuildingis carriedoutinseveralstages.Inthisinstance,thedeveloperfortower-wise developmentisdesignatedasthepartialOC.

ThekeybenefitofpartialOCisthatitensureshomeowners'legalrightstothe propertyandgivesthemfullaccesstotheessentialservices.Theamenities,suchas thegymandswimmingpools,arenotneverthelessavailableundertheaccessed.It willalsobedifficulttogettheKathacertificateandhavehomefinancingapproved.

Comparing the several types of certificates: occupancy, completion, & possession

Thethreetermsmayoverlapandappeartobecontradictory,yettheyareactually extremelydistinctfromoneanother.Whenahousingprojectiscompletewithall amenitiesandislivable,theauthoritieswillissuea"completioncertificate."When theauthoritiesarecertainthattheconstructioncompliedwithallregulations,laws, andby-laws,theprojectwillbegivenits"occupancycertificate."Contrarily,a possessioncertificateservesasproofthatthepropertyhasbeentransferredfrom thebuildertothepurchaser.A"possessioncertificate,"whichincludesthedatethe buyerformallyassumesownershipoftheproperty,isissuedbythebuilder.

Completioncertificate Occupancycertificate Possessioncertificate

Indicatewhetherthe structuresatisfiesall conditionsforbecominga livablespace.

Indicateswhetherthe buildingstandardsand bylawsarefollowed.

Indicatesthetimeat whichthebuyerandthe developerexchanged ownership.

issuedtothebuilderby authorities issuedtothebuilderby authorities issuedtothepurchaser bythebuilder AfterCCissuance,the buildingisofferedfor possession.

AfterOC,thebuildercan requestserviceslike powerandwater.

Issuedwithin30days followingtheissuingof theOCandCC,andthe buyermaymovein.

Property Owner Protection: Occupancy Certificate

Anoccupancycertificatecertifiesthatapropertyisfitforoccupancy.Ithelpsyou ensurethatneitheranunpleasantaccidenttakesplacenorthatyouaregivenan insecurestructuretolivein.Inordertoprotectyourownershiprightsandagainst beingtakenadvantageof,itisimperativethatyouexercisecautionasabuyer.You cancomplainintheconsumerforumifyourbuilderwon'tofferyouanOC.He shouldreceivealegalnotificationrequestingthereturnoftheOCwithinamonth.If theprojectisregisteredwiththeRERA(RealEstateRegulation&DevelopmentAct), youcangatherwithotherbuyersandsubmitareporttotheRERA.

Occupancy Certificate Conclusion:

Anoccupancycertificateisacrucialpieceofrealestatedocumentation.Government andmunicipalserviceslikethesupplyofwaterandelectricityaremademore secure.YoumustbereallywatchfulandmakesureyougetOCfromthebuilder.In theeventthatyourbuilderforgetsordeclinestoprovideone,youcanfilea complaintwiththeRERAortheconsumerforum.

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