When a project is constructed, there are many mandatory documents that have to be in place that actually reinstate that the project has followed all legal compliance. Two such important documents are the completion certificate (CC) and occupancy certificate (OC). In this guide, we understand what CC and OC are and their importance.
What is a completion certificate (CC)?
A completion certificate is awarded to a residential project when the property construction is done as per all construction-related requirements. This includes non-tower areas that are also known as common areas, amenities etc. in the project. A CC is issued by the municipal authority or a qualified inspector after completely examining the project. These are done after the building plans are reviewed, reports and permissions checked carefully ensuring that the National Building Code of India standards are met. The CC also serves as legal proof that the builder has not violated zoning laws or environmental guidelines. It confirms that the developer has provided the infrastructure promised, such as roads, sewage lines, and drainage facilities. Without a CC, the project is considered legally incomplete, and buyers may face issues in resale or loan approvals. Many housing authorities make CC mandatory before registering individual property sales in the project. It acts as a safeguard for homebuyers, ensuring the property complies with all statutory requirements before possession.
What information does a CC contain?
CC includes information such as:
- Property address including address, plot number of the project
- Confirmation that the project has been constructed after adhering to approved plans and national building code of India.
- Permits asked and cleared during construction of the project
- Completion status of the project
- Reports that have recorded the inspections done by the authority and their findings
- Information of the issuing authority including name, designation and seal of the municipal authority granting the CC and the date on which the certificate is issued.
How can homebuyers verify the CC?
- The CC can be verified by checking with the municipal authorities. This can also be checked on the portal of the developer by putting the project name, RERA number etc. etc.
- Before investing in a project, you can ask the developer for a copy of the completion certificate.
What is an occupancy certificate (OC)?
A completion certificate is awarded to a residential project when the property construction is compliant with safety and regulatory standards and is fit for habitation.
What details are included in the OC?
The OC contains details such as:
- Details of the property including location, address and plot number
- Undertaking that the project has adhered with all necessary standards
- Specifications of project such as number of floors, residential etc.
- Meeting of safety standards
- Name, designation of the authority and date on the OC
- Approvals for basic utilities such as water, electricity etc.
Can a building be occupied without OC?
In most jurisdictions, occupying a building without obtaining an occupancy certificate is illegal. Occupying a building without a certification can lead to legal consequences and may pose risks to the occupants.
In most places in India, occupying a building without getting an OC is illegal. However, there are many projects across India which hasn’t got their OCs even after the project has completed its construction years back. While some people still wait before shifting to the project, media reports mention of many cases with people moving into the project with no OC in hand.
Note that occupying a building without a completion and occupancy certificate can result in serious legal risks.
Importance of CC and OC for home buyers
These certificates are important because:
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- Based on these certificates, financial institutions like banks or non-banking financial companies (NBFCs) grant home loans. With these certificates, credibility of the project is enhanced.
- They assure that the property is safe and is fit for occupation as they comply with the building plans that are approved, RERA guidelines, municipal laws etc.
- They protect from any kind of ownership legal complication.
- All the properties that have these certificates in place can command a higher value in the realty market as the papers are transparent
What is the difference between completion certificate and occupancy certificate?
| Completion certificate | Occupancy certificate |
| This confirms that all construction in the project are completed according to the plans that have been approved by the authority. This includes the structural work, the utilities, amenities etc. | This confirms the housing unit is compliant with the National Building Code of India (NBC) with structural, electrical, drainage, regulations related to fire safety etc. that is important to avoid any risks associated with livability. |
| Once a residential project gets CC, it means that the project is legally in line with regulations such as environmental regulations, zoning regulations and safety requirements. | Once a residential project gets an OC, it means that the building is safe for staying by the people. Having an OC means the project includes basics provided by the municipality- electricity, water, etc. and is safe for staying by including things like safety exits, fire extinguishers, sprinkler systems, gas alarm etc. |
| This document is necessary for giving handover and possession of the property. Following the property getting this certificate, it is clear that the property is ready for use. | The OC is an important legal document that allows people to move into a newly constructed housing building. OC validates the legality of a property and prevents unauthorised occupation of the residential unit. |
| In case of a need for structural repairs from the builder, the CC plays an important role as this will act as a point of reference for the owner to ask for claims.
Also, buyers who are evaluating a property can check the CC and thereby take a decision on whether to buy the property or not. |
Without an OC, municipal authorities cannot give essential and basic services like water, electricity, and sewage connections to the residential project. |
| This is received by the builder only after construction of the project. | This is issued only after the CC is received. A developer has to apply for the OC within 30 days of getting the CC. |
Risks associated with not having CC and OC
- Absence of CC and OC means the property buyer is legally weak and can be penalised for a wide variety of issues.
- As the CC and OC is not there, the building is believed to be illegal in nature and can lead to partial or full-demolition.
- Since the papers of the property are incomplete, the resale value will be weak.
- Most banks and NBFCs may not give loans to such projects. There may be other parties who may give loans but at a higher rate of interest as there are no papers with the project.
Housing.com POV
The completion certificate and occupancy certificate are important to establish that a project has been constructed keeping legality and compliance in mind. Absence of these literally means that the residential project is not fit for staying. This is because they may have violated some necessary parameters which may have an impact at some point of time.
Therefore, homebuyers should always insist on checking CC and OC before taking possession of any property. These certificates not only protect your rights as a buyer but also ensure the long-term value and safety of your investment. Ultimately, they serve as a legal assurance that your dream home is ready, reliable, and risk-free.
FAQs
1. What is the difference between a Completion Certificate and an Occupancy Certificate?
1. What is the difference between a Completion Certificate and an Occupancy Certificate? A Completion Certificate confirms that a project has been constructed according to approved plans and codes. An Occupancy Certificate certifies that the property is safe, has essential utilities, and is legally fit for habitation.
2. Can I take possession of my flat without an OC?
Legally, no. Without an OC, the property is not considered fit for occupation. Moving in can lead to denial of utilities, fines, or even demolition orders by municipal authorities.
3. Is it possible to get a home loan without CC and OC?
Most banks and NBFCs will not approve home loans for projects lacking CC and OC. If financing is available, it often comes with higher interest rates due to increased legal risk.
4. Who issues the Completion Certificate and Occupancy Certificate in India?
Both certificates are issued by the local municipal authority or a designated government body after inspecting the project for compliance with approved building plans and safety norms.
5. What should homebuyers do if a project doesn’t have CC or OC?
Buyers should avoid taking possession or making final payments until the developer provides both certificates. If already invested, they can approach the RERA authority or consumer court for redressal.
Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com