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What is occupancy certificate

Shivendra Pratap Singh

Advocate (Lucknow)

Online advising since Oct. 2014

Property | RERA

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An Occupancy Certificate (OC) is a document issued by the local municipal corporation or development authority that certifies that a building has been constructed in accordance with the approved plans and that it is fit for occupation. It is a proof that the building has been constructed as per the approved plans and it has met all the safety standards and local building codes.

The OC is issued after the completion of the construction and inspection of the building by the local authorities. The builder or the developer has to submit the necessary documents such as the building plan, completion certificate, and the no-objection certificate from the fire department, among other things, to obtain the OC.

The OC is an important document for the owner or occupier of the building, as it is required for obtaining various services such as water and electricity connections and for availing home loans from banks or financial institutions. It’s also important to note that the occupancy certificate is a mandatory requirement for the owner to be able to legally occupy the flat or the house.

It’s important to note that some local authorities may also issue a Provisional Occupancy Certificate which means the builder can give possession of the flat to the buyer with some conditions and if the buyer completes the pending work as per the agreement, he/she can get the final occupancy certificate.

Occupancy certificate in RERA

The Real Estate (Regulation and Development) Act, 2016 (RERA) is a law that regulates the real estate sector in India. These are the silent features of RERA. Under RERA, a developer is required to obtain an Occupancy Certificate (OC) for a real estate project before handing over possession to the buyers. The OC must be issued by the local municipal corporation or development authority and it certifies that the building has been constructed in accordance with the approved plans and that it is fit for occupation.

RERA also requires developers to register their projects with the state-level regulatory authority before launching them. Once registered, developers are required to provide various details of the project, such as the approved plans and the completion certificate, to the regulatory authority. The regulatory authority then verifies the details provided by the developer and issues an OC to the developer, once it is satisfied that the building has been constructed in accordance with the approved plans and that it is fit for occupation.

It’s important to note that developers are also required to submit a copy of the OC to the regulatory authority and update it with the status of the construction and the completion of the project. This helps to ensure that the buyers are not given possession of an incomplete or substandard building.

It’s important for the buyers to check the registration of the project and the occupancy certificate with the RERA authority before purchasing the flat or house, to ensure that the builder has obtained all necessary approvals and that the building is fit for occupation.

Penalty for issuing possession letter without having occupancy certificate

The penalty for issuing a possession letter without obtaining an Occupancy Certificate (OC) can vary depending on the laws and regulations in your jurisdiction. However, it is generally considered an irregularity, and it can result in various legal and safety issues.

Under the Real Estate (Regulation and Development) Act, 2016 (RERA), a developer is required to obtain an OC for a real estate project before handing over possession to the buyers. If a developer issues a possession letter without obtaining an OC, it can be considered a violation of RERA and can result in penalties imposed by the state-level regulatory authority. The penalties can include fines, imprisonment, or both.

Additionally, if the building is not in compliance with the approved plans or safety standards, the occupier may be at risk in case of an emergency or natural disaster. The local authorities may also take legal action against the builder for violation of building codes and safety standards.

It’s important for the buyers to check the registration of the project and the occupancy certificate with the RERA authority before purchasing the flat or house, to ensure that the builder has obtained all necessary approvals and that the building is fit for occupation.

It’s always best to consult with a lawyer who is familiar with the laws of your jurisdiction to understand the penalties that may be imposed for issuing possession letter without having an occupancy certificate.

shivendra pratap singh advocate

Shivendra Pratap Singh

Advocate (Lucknow)

Consult on Criminal, Civil, Writ, Matrimonial, Service matters, Property, Revenue, SARFAESI related cases

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