What is an occupancy certificate? Can you move into a property without OC?

Real estate projects need several certificates, such as a no objection certificate (NOC), project commencement certificate and completion certificate (CC). One of them is the occupancy certificate or the OC, that is issued by the local administrative body.

Home buyers have several queries regarding the OC, such as when will it be issued, what happens if it is not issued, etc. In this guide, we explain the significance of the occupancy certificate and why is it important to have one before shifting into a new property.

Here is all you need to know about a Completion Certificate

 

What is an occupancy certificate?

An occupancy certificate is an important real estate document that certifies that the constructed project is fit for living. It states that the project has been constructed and completed as per the approved plans and quality standards during the project registration with the Real Estate Regulatory Authority (RERA) of the state.

 

What is the importance of an Occupancy Certificate (OC)?

• An occupancy certificate is issued after a proper inspection of the site to confirm if all land use regulations have been followed.
• This is important because it is issued by the municipal body that assures home buyers that the project conforms with safety and regulatory standards, making it fit for legal occupancy.
• A building occupancy certificate further reassures home buyers of the property’s structural integrity, preventing safety risks.
• Note that it is an important document that safeguards a home buyer’s family and the project’s value.
• As the OC is issued by the local body, without it, basic facilities, such as electricity and water, will not be available.
• Moreover, people who are interested in getting home insurance will find it challenging in the absence of an OC. The absence of OC will also impact the rentals and create problems when selling the property.

 

Documents to be submitted to get an OC

To get an OC, the developer has to submit the following documents to the municipal body:

• Project commencement certificate
• Building’s sanctioned plan
• NOC for fire and pollution
• Architect-approved area computation sheet of the floor
• Photograph of solar panels, rainwater harvesting and building
• Project completion certificate
• Property tax bills

 

When does a project get an OC?

Before issuing an occupancy certificate, the relevant authority conducts a thorough examination to ensure the following:

• Adherence to legal and approved construction plans
• Compliance with building codes and regulations
• Availability of essential amenities, such as drainage and electricity
• Acquisition of all necessary clearances, including the fire department’s

Once done, the OC is issued within a month.

 

What can be done if the developer does not give an OC?

• If your project is RERA-registered, the occupancy certificate can be found on the RERA portal. If there is no information about the project, home buyers can contact the municipal body and start the process of getting the OC.
• They can complain with the consumer forum.
• They can complain with the state’s RERA. Note that each state charges a different application fee to consider the case.
• Once the authority checks all the documents, they issue an OC for the building.

 

What is a partial occupancy certificate?

If a project is constructed on a large scale and is spread across phases, each phase’s home buyers will get a partial occupancy certificate, based on when their building was constructed. This will ensure that home buyers do not have to face financial burdens while waiting for the completion of the entire project when their particular property is ready for use.

 

Can a homebuyer occupy a property without an OC?

It is illegal to occupy a property without an occupancy certificate. Once the OC is received, a developer calls for the final property payment. Once done, the possession of the unit is handed over.

 

What is the difference between CC, OC and possession certificate?

Completion Certificate (CC)	Occupancy Certificate (OC)	Possession certificate
A CC is issued when a project is completed based on the blueprint and quality standards presented for project approval. It includes the project and the peripheries, such as the amenities.	An OC mentions that the property has adhered to safety and quality standards and is fit for occupation.	A possession certificate is issued within 30 days if the building has been constructed in compliance with accepted plans. It is issued by the developer, indicating the change in ownership.

 

First, the CC is issued, followed by the OC and, finally, the possession certificate is issued.

 

Housing News View Point

Moving into a property that does not have an occupancy certificate is illegal and dangerous for a home buyer from a safety perspective. If you have not received the OC even if the project is complete, check with the municipal body for the reason and seek their intervention to sort the issue out instead of forcefully moving in.

 

FAQs

What is the occupancy certificate?

An occupancy certificate certifies that a property is fit for occupancy.

Who issues the OC?

The OC is issued by the municipal corporation of a place in which the property is located.

After project construction, if the developer does not give an OC, what can home buyers do?

Home buyers can contact the municipal body and start the process of getting the OC.

What happens if a person lives without the OC?

Staying in a project without an OC is illegal in India. Buyers may get a legal eviction notice from the municipal body.

Can possession be given without an OC?

No, it is illegal to occupy a property before getting the OC. Only after the OC and the home buyer make the balance payment can the possession of a property be given.

Is it ok to buy a house without an OC?

It is risky to buy a house without an OC as it can face legal action and be demolished anytime.

Can a buyer get a home loan for a property with an OC?

The occupation certificate is a necessary document required by a bank or housing finance company to sanction a home loan. If a property buyer is applying for a loan, he will require an occupation certificate.

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 requirements in place to be habitable.

Do builders have to show OC to get a water connection?

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

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