Home Buying

What Is A Certificate Of Occupancy & Why It Is Important?

11 NOV 2023

What is a Certificate of Occupancy?

Imagine you’ve finally bought your dream home and the excitement has no bounds. You can’t wait to start a brand new journey where you will move in, start shopping and make arrangements in your new home. But wait! Have you heard of the certificate of occupancy? A certificate of occupancy is the crux of a real estate property. Local authorities issue occupancy certificates upon a property’s readiness for occupancy. Every new homebuyer should request one, as it confirms the property is equipped with essential civic needs, including water, electricity, and sanitation. The certificates confirm that the relevant authorities authorized the construction of the building according to the plans.

How Important Is a Certificate Of Occupancy

Certificate of occupancy
Every prospective buyer should ask for a certificate of occupancy from the seller or builder. Without an occupancy certificate, a property may face sudden demolition due to a violation of standards and plans. Additionally, resale becomes impossible without this crucial certificate. And not just that with the certificate the basic utilities like electricity and water supply would be disconnected.

Let us have a further look at the importance of the certificate.

Seamless Transactions

A certificate of occupancy helps streamline the buying and selling process of a property. It clearly states that the property abides by the legal requirements and is ready for occupancy, avoiding any disputes down the road, and assuring both parties are on the same page.

Property Value

A property with a valid CO often holds more value in the market. It signals that the building is well-maintained, reducing the perceived risk for buyers or investors.

Insurance Coverage

Insurance companies require an occupancy certificate before providing coverage for a property. This certificate is a form of evidence to show that the property has been built by adhering to the approved plans and is completely safe to reside in. Without the certificate of occupation, insurance companies would deny giving coverage, and the homeowner might fall into losses in situations of unpredictable accidents.

Safety

The certificate is mandatory for properties, especially in India where natural calamities like earthquakes are common. The certificate ensures that the building strictly adheres to the structural integrity and abides by the safety regulations laid down by the local authorities.

Legal

Acquiring an occupancy certificate prevents you from attracting penalties and fines from the local authorities. Without the certificate, the building would be labelled illegal. So make sure the builder gives you the certificate. If the builder doesn’t provide you with one, even after serving the notice, then you can go ahead and exercise your legal rights.

How to get a Certificate of Occupancy

To obtain an occupancy certificate, a builder must submit specific documents to the local authority. The certificate is usually provided within 30 days. But in case the builder doesn’t provide the OC to the homeowner, they can apply for the same directly at the municipality.

Project Commencement Certificate
Project Completion Certificate
No Objection Certificates for Fire and Pollution
Copy of the building’s sanctioned plan
Area computation sheet of the floor signed by an approved architect
Photographs of the building
Photographs of solar panels and rainwater harvesting (If applicable)

How to Apply for an Occupancy Certificate

Following are the steps to be followed to apply for an occupancy certificate.

  1.  Visit the Municipality – The potential homeowner must visit the local co-operation or municipality.
  2. Fill the form – Collect the form from the concerned official and fill in the necessary details.
  3. Submit the Form – Submit the application form along with the appropriate documentation. Upon submission of the form, we will issue the certificate within 30 days of receiving it.

Difference between occupancy, completion and possession certificate


The authorities confirm the habitability of the building and certify its construction by the municipal co-operation’s building plan by issuing a completion certificate. The builder gets the occupancy certificate only after getting the completion certificate, to apply for basic utilities like water supply, electricity and sanitation.

The Occupancy Certificate asserts legal construction, and compliance with local building codes, and ensures homeowner safety. The builder can apply for the basic utilities with the occupancy certificate.

The local municipal authority issues the possession certificate as a legal document. It signifies that the property is ready for possession by the potential homebuyer. Possession certificates are generally used to apply for home loans.

Conclusion

Upon moving into your dream home, remember that the journey extends beyond construction completion. Possessing the essential legal documents ensures true ownership. At Confident Group, we assist you on this confident journey, emphasizing that your investment is not just in a property but in a promise of quality and compliance.

Author - Webdura

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