The importance of Occupancy Certificate while buying an apartment.

The importance of Occupancy Certificate while buying an apartment.

What is an occupancy certificate?
An Occupancy Certificate (OC) is a document issued by the local authority (Corporation/Municipality/Panchayat) to the applicant (builder) once the construction of the building is completed as per the approved plan and permit. A buyer can occupy the new apartment only after OC has been received.
Who is responsible for obtaining Occupancy certificate?
It is the responsibility of the Builder to get the occupancy certificate once the construction is over. It is mandatory for every residential complex to obtain OC. A buyer should only take the physical possession after procuring OC from the builder. So the apartment owner has to make sure that the builder has taken steps to get the occupancy certificate.
A builder will get the occupancy certificate only if it carries out the work in accordance with the approved plan and permit.  For an apartment complex, the occupancy certificate is issued for the entire building based on completion plan.  But for a villa separate occupancy certificate will be given to each owner.
What are the documents required to obtain Occupancy Certificate?

  • Completion plan
  • Copy of building permit

What if there is no Occupancy Certificate?
The law says no buyer can move into a building without OC. Without OC a buyer need not be able to sell or mortgage the apartment after a lapse of time.  The Occupancy Certificate is an essential document ensuring the security of buyer’s investment.

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