Narayan Kumar and his wife recently purchased a 2BHK apartment at Marathahalli, in Bengaluru. The proud owners of the new home were unaware of the trouble that was to come. As the builder did not provide them with the Occupancy Certificate (OC), the family faced issues in getting access to civic amenities.
Many homebuyers, particularly first-timers are not aware of the occupancy certificate and often mistake it to be the same as the possession letter. There are several documents, which are required during the purchase of a property and obtaining them could prove to be a tedious process. The OC is a crucial document, which must be sought and buyers have the right to take legal action against the developer if the same is not given to them.
Here's the difference you need to know between a Possession Letter and an Occupancy Certificate:
The Possession Letter is issued by the developer in favour of the buyer, stating the date of possession of the property. The original copy of this document needs to be produced for securing a home loan. A Possession Letter alone would not suffice for legal possession of the property, unless the OC has been obtained.
Certificate of Occupancy or Completion Certificate is a document which is issued at the end of the construction, by a local government agency or planning authority. The document is a proof of the building's compliance with applicable building codes and other laws. It indicates that the property is in a suitable condition for occupancy. The developer is responsible for obtaining the Occupancy Certificate and it is issued only once the building has been completed in all respects and is ready to be occupied. A Completion Certificate is received by the builder from the metropolitan authorities, upon completion of construction.
An Occupancy Certificate is necessary while seeking loans from banks and financial institutions or while applying for water, sanitation and electricity connections. Legally, a homebuyer cannot move into the property without the document. The certificate is also important in scenarios when a buyer applies for Khata or when purchasing a re-sale flat. The sale of the apartment would not fetch a good price, without the OC.
To obtain the Occupancy Certificate, the following documents need to be submitted:
- * Copy of building sanction plan
- * Building Commencement Certificate
- * Copy of building Completion Certificate
- * Latest property tax receipt
- * Copies of no-objection certificates (NOCs) from pollution board or Airport Authority