Must Knows

What is an Occupancy Certificate?

[] An occupancy certificate is an important document you need to obtain, while buying any new property. We explain what an occupancy certificate is and why you need it, when investing in real estate

An occupancy certificate (OC), issued by the local authorities, certifies that a building is fit for occupation and has been constructed as per the approved plan and in compliance with local laws.

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Occupancy certificate importance

An occupancy certificate is a document that is issued by a local government agency or planning authority, upon the completion of construction of a new project. The certificate is proof that the project has been built, by adhering to the applicable building codes, relevant regulations and laws. It is the responsibility of the developer to obtain an occupancy certificate, once the project has been completed. The certificate is an indication that the building is suitable for occupancy. An OC is required, when applying for water, sanitation and electricity connections.

For home owners, an OC is necessary to cement the legal status of the property they own. In the absence of a valid OC for a property, the local municipal body has the right to initiate legal action, because without an OC, a project is deemed an unauthorised structure. You will require an OC, when you apply for a home loan, or if you are purchasing a resale property. You would also need a valid OC, when you wish to sell your property.

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Occupancy certificate: How can you obtain the document?

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Ideally, a developer must apply for an OC, within 30 days of the completion of the project. As a property owner, you can also apply for an OC from the local corporation or municipality. If the project has fulfilled all the criteria necessary for approval, you will usually receive a copy of the OC within 30 days of the application. Here are the documents that you will need to submit, as part of your application:

  • Project commencement certificate.
  • Project completion certificate.
  • NOCs for fire and pollution.
  • Latest property tax receipt.
  • Copy of the building’s sanctioned plan.

Difference between occupancy, completion and possession certificate

The authorities issue a completion certificate (CC) to a housing project, after ensuring that it has all requirements in place to be habitable. It is only after a CC is issued to a project that it becomes ready for possession for home buyers. An occupation certificate or OC, on the other hand, is a certificate stating that the project has been built in accordance with all construction norms, building bye-laws, etc. It is only after a project receives an OC, can the builder apply for various utilities for the project. A possession certificate is issued to the buyer by the developer, as proof of transfer of ownership. It mentions the date of possession of the property by the new buyer.

Occupancy certificate Completion certificate Possession certificate
Issued by the authorities, stating that the project follows all construction norms and building bye-laws. Issued to a housing project, after ensuring that it has all requirements in place to be habitable. Issued by the developer indicating the change in ownership.
Builder applies for utilities (electricity, power, water supply, etc.) after receiving the OC. Possession is offered once the CC is issued A possession certificate is issued within 30 days, if the building has been constructed in compliance with accepted plans.

Occupancy certificate: How does it protect homebuyers?

A home buyer should extract the OC certificate from the developer to affirm the property’s suitability for possession and secures the ownership right.

Further, if a builder refuses to provide the occupation certificate, the buyer can file a complaint in the consumer forum, followed by an application fee. A notice should be issued against the builder asking him to handover the OC certificate within a month.

Buyers can lodge their complaints regarding occupancy certificate under RERA. They can file their grievances on the state’s official RERA website for RERA registered projects.

Your rights as a property owner

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If the developer refuses to provide an OC, or he hasn’t acquired one even after the project has been completed, you can take legal action against the developer. A legal notice can be issued, asking him to provide the OC and you can even take the case to a consumer court. Legislation like the Real Estate (Regulation and Development) Act (RERA), are expected to significantly decrease instances of negligence or fraud by developers. However, as property owners, you must be vigilant and ensure that important documents like the OC are in place, to secure your rights over your property.

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What is ‘Temporary Occupancy Certificate’?

A temporary occupation certificate is subject to cancellation. The term ‘temporary occupancy certificate’ does not exist in any rule book of any authority. However, the term ‘partial completion certificate’ exists, which certifies that the builder can facilitate tower-wise completion. Buyers should keep in mind that the lifespan of a sanction plan is five years, which at best can be extended for two years along with a fine. Once a buyer has taken possession on a temporary OC, he must promptly ask the builder for a permanent OC on completion.

Occupancy Certificate: How to check the status?

The status of a project can be accessed on the web portal of the concerned state’s RERA, if the project is registered under the Act. The RERA mandates that all builders update the developments in the project on a regular basis, on the portal. If the same is not updated or available on the web portals, it can be confirmed from the local authorities or civic bodies.


When does a project get a CC?

A completion certificate is issued by the local authorities for a housing project after, ensuring that the project has all the necessary requirements in place, to be habitable.

When does a project get an OC?

An occupancy certificate certifies that a building has been constructed as per the approved plan and in compliance with local laws.

Do builders have to show OC to get water connection?

An occupancy certificate is required, to apply for electricity, water and sanitation connections.

(With inputs from Surbhi Gupta)

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Category: Must Knows

Debora Berti

Università degli Studi di Firenze, IT

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