An Occupancy certificate is an essential document that represents that a building is ready for
occupation. If you are purchasing a new house, you must make sure that the building has
received an Occupancy Certificate. Let's explore what is an Occupancy Certificate, how to obtain
it, and its legal importance.
What is an Occupancy Certificate?
When the construction of a building is complete, the builder has to apply to the local municipal
authority for an OC. The full form of OC is 'Occupancy Certificate'. The certificate indicates
that:
1. The building is constructed as per the plan approved by the local authority.
2. It satisfies various building rules and regulations.
3. The building is fit for occupancy, with necessary facilities like electricity and water
supply.
If you are buying a house, your builder should provide this certificate before handing you
possession.
Legal significance of an OC
An Occupancy Certificate is a legal document issued by the local municipal authority. The
certificate proves that the building is safe to live in and is constructed according to the approved
plan. According to many local laws, moving into a building without an Occupancy Certificate is
illegal and an offense — the local government can take legal action and impose fines and
penalties for this.
Documents required for obtaining an Occupancy Certificate
- Duly filled application form
- Completion certificate
- Copy of the sanctioned plan
- No Objection Certificate from the fire department
- A certificate of structural stability obtained from a structural engineer
- Photographs of the completed construction
Every local authority can specify its Occupancy Certificate requirements. Check the local laws
and regulations to get more specific information about the application process.
Importance of obtaining an Occupancy Certificate
Having an Occupancy Certificate provides peace of mind knowing that the building you will be
residing in meets all safety and regulatory standards. It assures you that you are not at risk of
facing legal or safety issues related to the construction of the building:
- Risk of eviction: A building without an Occupancy Certificate is deemed to be an illegal
structure. Your local authority may have the right to evict you from the building.
- Trouble getting basic facilities: Without an OC, your building may not get necessities
like electricity supply, water supply and sanitation connections.
- Required for Housing Loans: If you apply for a Home Loan for your property, your
lender can ask you to provide an Occupancy Certificate. With Axis Bank, you can take
up a Home Loan for amounts starting at ₹3 lakh. Take up a loan with smaller EMIs, no
pre-payment charges and attractive interest rates.
When buying a new property, remember to ask your builder for its Occupancy Certificate. If
your builder refuses to provide the certificate, consider not buying the property because it may be
illegal.
Checking Occupancy Certificate online
The procedure for checking the Occupancy Certificate would be different for every local
authority. The facility to check Occupancy Certificates online is generally available on the
official website of the local authority. The website will likely ask for details like the application
number and address of your property. You may be able to download the certificate directly from
the website.
If the website of your local government does not have this feature, you may need to visit the
local municipal corporation office to collect the certificate.
Myths surrounding Occupancy Certificates
Most homeowners know the meaning of OC. However, there are some common misconceptions
about this document that need to be addressed -
1. OC is optional: Some homeowners believe that obtaining an OC is not compulsory. This
misconception can expose you to legal action, fines and penalties from the local
authority.
2. Occupancy Certificates are only required for commercial properties: Contrary to this
common misconception, an Occupancy Certificate is also required for residential
properties.
3. Occupancy and Completion Certificates are the same: Both of these certificates are
mandatory. A Completion Certificate indicates that the construction of the building is
complete as per the approved plan. The Occupancy Certificate means that the building is
ready to be occupied, with facilities like sanitation, water and electricity. The builder has
to get a Completion Certificate before applying for an OC.
Also Read: What is a Home Loan: Benefits, types & meaning
Conclusion
Obtaining an Occupancy Certificate is essential for ensuring safety, insurance coverage, resale
value, utility connections and peace of mind for both property owners and occupants.
Before purchasing your new house, you must make sure that the construction complies with all
legal requirements. Ensure that your builder has obtained a valid Completion Certificate and an
Occupancy Certificate for the building. Whether you want to live in the house, rent it out or sell
it to someone, you will need to have these documents in hand.
If you are exploring a Home Loan to buy your dream home, Axis Bank offers a home loan with
attractive features like flexible EMI options, competitive interest rates, the convenience of
doorstep services, and a range of other features that can make your home buying experience
hassle-free.
FAQs
Q. When does a project get an OC?
A construction project gets an OC after it is completed and the project has necessary facilities
like water and electricity.
Q. What is the difference between OC and CC?
OC refers to 'Occupancy Certificate', while CC means 'Completion Certificate'. A CC signifies
that the project is constructed according to the approved plan. An OC indicates that the
construction is complete and that it is fit to be occupied. Both of these certificates are legally
required.
Q. Is it safe to buy property without an OC?
No, it is not safe to buy a property without a valid OC. Getting an Occupancy Certificate is a
legal requirement. It indicates that the property is safe to live in. If you buy a property without an
OC, you are risking your safety, and you could be exposed to legal action, like eviction, penalties
and fines.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
