FOR HOME BUYERS.
Many home buyers are not aware of the implications of not having Completion certificate, occupancy certificate and possession certificate from the builder/seller. This article explains the importance of these certificates and the implications that the home buyers must be aware of in overlooking them.
WHAT IS CC ?:
Whether it refers to Commencement Certificate or Completion Certificate? The term CC is sometimes used very casually, hence buyer must look at the full form of CC.
Commencement Certificate:
It is an important document that the developer needs to procure from local authorities before he begins construction. When a developer submits his plan, the local authorities give their approval subject to a lot of no objection certificates/approvals, clearances that the developer is expected to get from various authorities around the project. These include clearances from fire deptt. Water deptt. Sewage deptt, electrical deptt. Etc.
If the Commencement Certificate is not available, it suggests that the property could be illegal, or the property is under dispute.
Normally given in two stages, upto plinth level and then for the super structure by
the Local Authority.
Completion Certificate:
A completion certificate is awarded by local authority after thorough evaluation of the building. It assures buyers that the construction work has been executed in accordance with the approved plan. Thus, as a homebuyer, it is advisable not to take the Possession Certificate without the Project ‘Completion Certificate’ as in the absence of a completion certificate, the building or Project is considered illegal and could invite penalties.
Occupancy Certificate:
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. It is also a proof that the property has other legal approvals like fire safety, water board and environment regulations.
The Occupation Certificate is an essential requirement by a bank for giving home loan in a constructed building.
Possession Certificate:
A possession certificate is issued to the buyer by the developer as proof of transfer of ownership. It mentions the date of peaceful possession of the property by the new buyer.
Note:
It is possible that the original owner of a resale property has a completion Certificate but not Occupation Certificate. In such a case the buyer can ask the original owner to apply for an OC directly to the local authority, clear the dues and get the OC issued to make the property eligible for home loan.