What is the Importance of Occupancy Certificate (OC)?

By LODHA

The OC's full form in the building stands for an occupancy certificate. It is a crucial document that certifies that a building has been constructed and developed as per the approved plans and complies with all the necessary safety norms and regulations. The certificate is issued by the local municipal authority after the completion of the construction process, and it serves as proof that the building is ready for occupancy.

The issuance of the OC certificate is an essential step in the real estate industry. It is a legal requirement for a developer to obtain an OC before the building is ready for possession by the buyers. The certificate ensures that the building has been constructed in compliance with the regulations set by the authorities and that it is safe for occupancy.

Why is an occupancy certificate important?

Under the Real Estate (Regulation and Development) Act (RERA), 2016, the issuance of the OC is an essential step in the real estate industry, and it has become more important than ever before. For the occupancy certificate, RERA has mandated that developers should obtain it before the building can be occupied by the buyers. The status of the OC will be updated on the RERA website, enabling buyers to check the status of the OC and other project details.

If the developer fails to obtain the OC, or if the building does not comply with the regulations, the RERA authority can impose penalties and take legal action. The buyers can also file complaints with the RERA authority if they face any issues related to the possession of the property or the issuance of the OC certificate.

The issuance of an OC is important for various reasons. Here are some of the reasons why it is important for developers, buyers, and the authorities:

Legal Requirement

The issuance of an occupancy certificate is a legal requirement that needs to be fulfilled by the developer before the building can be occupied by the buyers. The certificate is proof that the building has been constructed in compliance with the rules and regulations set by the authorities. The developer can face legal consequences if they fail to obtain the OC.

Safety

The OC in property ensures that the building has been constructed in compliance with the safety norms and regulations. The certificate is issued only after the authorities inspect the building and ensure that it is safe for occupancy. The OC also certifies that the building has been constructed with the necessary fire safety measures in place.

Financing

Banks and financial institutions require an OC in property before they approve a home loan. The certificate serves as proof that the building is safe and legally compliant. This ensures that the bank's investment is secure and reduces the risk of default.

Resale Value

An occupancy certificate increases the resale value of a property. Buyers prefer properties with an OC as it assures them that the building is safe and legally compliant. A property without an OC may have difficulty finding buyers, which can affect its resale value.

Transparency

The issuance of an OC ensures transparency in the construction process. It ensures that the developer has followed the approved plans and has not made any unauthorized changes to the building's structure or design. This increases the buyer's trust in the developer and the property.

How to Obtain an Occupancy Certificate?

The process of obtaining an occupancy certificate involves the following steps:

Application: The developer needs to apply for the OC to the local municipal authority. The application should include all the necessary documents, such as the building plans, completion certificate, and fire safety certificate.

Inspection: The authorities will inspect the building to ensure that it has been constructed in compliance with the approved plans and safety regulations. The inspection may also include a check of the fire safety measures. 

Compliance: If the building is found to be compliant with the regulations, the authorities will issue the occupancy certificate. However, if there are any deviations from the approved plans or safety regulations, the developer will need to rectify them before the certificate can be issued.

Fees: The developer will need to pay a fee for the issuance of the OC. The fee may vary depending on the size and type of the building.

Can a developer obtain part OC? 

A developer can obtain a partial occupancy certificate (Part OC) for a project. A Part OC is issued for a specific portion or section of a building or a project, indicating that the particular portion is ready for occupancy.

Developers may apply for a Part OC for a specific section of the building that has been completed and is ready for occupation, even if the entire project is not yet complete. For example, a developer may apply for a Part OC for a completed tower in a multi-tower project or a specific floor in a high-rise building.

The process of obtaining a Part OC is similar to that of obtaining a regular occupancy certificate. The developer needs to apply to the local municipal authority, along with all the necessary documents related to the completed section. The authorities will then inspect the completed section and issue a Part OC if it meets all the requirements.It is important to note that a Part OC only allows for occupancy of the specific section of the building that it covers. The developer cannot allow occupants to move into any other section of the building that does not have a Part OC or a regular OC. Also, buyers need to check whether the developer has obtained a Part OC or a regular OC before taking possession of the property to ensure that the building is safe for occupancy.

An occupancy certificate is an essential document that certifies that a building has been constructed in compliance with the regulations set by the authorities. The certificate ensures the safety of the building and its occupants and is a legal requirement for the developer to obtain before the building can be occupied by the buyers. Obtaining an OC ensures transparency in the construction process and increases the resale value of the property. It is, therefore, important for both developers and buyers to ensure that the building has an occupancy certificate before possession.

Frequently Asked Questions

1. How to check the Occupancy Certificate online?

To check the Occupancy Certificate online, consider the following steps: 
Visit the Mumbai Municipal Corporation's website. 
When you arrive at the website's home page, click on citizen service. - Fill in the blanks with the necessary information. 
After filling out all of the necessary property information in the columns. 
You will see a PDF download option, which you can click on. 
Finally, the occupancy certificate is visible. 

Please note: Each state has its website for checking occupancy certificates.

2. What is meant by an Occupancy Certificate?

An occupancy Certificate is a vital document demonstrating that the building was built following the permitted designs and local laws.

3. Is it safe to buy a flat without OC?

No, it is not because without the OC it means the building can be demolished anytime.

4. Can I get a home loan without OC?

An Occupancy Certificate is one of the obligatory documents required by a bank or housing finance company to offer a house loan. As a result, you will be unable to get a home loan without it.

5. What is the difference Between OC and CC?

The Occupancy Certificate (OC) is issued for individual units, confirming their compliance with approved plans and safety standards and indicating readiness for habitation.

In contrast, the Completion Certificate (CC) is issued for the entire project, ensuring that the overall construction aligns with sanctioned plans, covering all infrastructure, amenities and common areas. Both certificates assure regulatory compliance and are essential for property buyers.

6. Documents Required for Obtaining an OC Certificate

Here is a list of documents required to get an OC certificate in India:

A copy of the sanctioned building plan
Copies of No Objection Certificates (NOCs) obtained from relevant authorities
Commencement of construction certificate
Property tax slips

7. What is the duration of getting an OC?

Developers ideally submit a Building Occupancy Certificate application within 30 days of project completion. Property owners can request it from local authorities, and if eligibility criteria are met with proper documentation, an Occupancy Certificate can be obtained within 30 days of application submission.