Why Occupancy Certificate is a Must have Document Nowadays?

An occupancy certificate is a legal document passed by the local government or building proposal department certifying that the construction of the building is completed and suitable for occupancy. In addition, OC certifies that the property has adhered to the required building standards and local laws and regulations. The civic body has full authority to evict an occupant or impose a heavy penalty for not showing the occupancy certificate.

Importance of Occupancy certificate

A certificate of occupancy ensures the property’s habitability and security. It is mandatory for homeowners or investors, or developers to obtain the occupancy certificate to secure the legal status of their property; otherwise, local municipal authorities can take legal action to deem the project as illegal. Besides knowing occupancy certificate’s meaning, property buyers should also know the reasons why obtaining an Occupancy certificate is beneficial:

1. Property owners need to produce an occupancy certificate while applying for basic civic amenities like electricity connection, proper sanitation, water supply etc., from the municipal body.
2. Without OC, an individual can’t resale a property. Moreover, the local civil body can ask property buyers to vacate property anytime.
3. An occupancy certificate is a mandatory document that must be submitted while applying for a credit option like a loan against property. Lenders do not sanction loans unless OC is issued.
4. Even while claiming Income tax benefit on the credit option, borrowers must submit the Occupancy certificate.

Hence, prospective buyers must ask for occupancy certificates from respective builders or sellers to avoid future complications during property transactions. In simple words, a buyer cannot occupy a property legally without obtaining an Occupancy certificate. Furthermore, a building occupancy certificate can fetch a good market value.

Know how to get an Occupancy certificate

Step 1: Visit the nearest local municipality or corporation.

Step2: Collect the form from the concerned officer and fill it up with personal and property details. 

Step 3: Finally, submit the form along with the necessary documents.

Upon submitting the form, concerned individuals can obtain an occupancy certificate within 30 days from the date of application of OC. If builders are delaying the process or refusing to grant applications, homebuyers have full authority to take legal action and state their grievances in the consumer forum. Moreover, they can issue a notice against the builder. Also, the onus is on buyers to check whether the occupancy certificate they have received is original.

Documents required for Occupancy certificate

To acquire an Occupancy certificate (OC), submit the following documents:

1. Building and sanction plan
2. Completion certificate
3. No Objection Certificate for fire and pollution 
4. Project commencement certificate
5. Area computation sheet of floor
6. Photos of the building (of rain harvesting, solar panel etc.)
7. Recent receipt of property tax

Keeping these documents and one’s legal rights will help one obtain the Occupancy certificate from the concerned authority. Furthermore, one can check the status of occupancy certificate from the web portal of the state’s RERA.

An occupancy certificate is an essential document that lenders ask from individuals applying loan against property. The occupancy certificate confirms that the property pledged as collateral is safe and secured for inhabiting.

Availing loan against property proves beneficial for those in urgent need of funds. A property in pristine condition and devoid of legal issues will fetch the borrower considerable funds, which can cover personal or business expenses. However, there are certain things that borrowers should know before applying for a loan against property.

Also, borrowers must meet the eligibility criteria set by lenders and keep necessary documents handy. Therefore, apart from submitting the occupancy certificate, intending borrowers should be well aware of the list of documents needed to apply for a loan against property to expedite the lending process.

Moreover, prospective borrowers can check the exclusive pre-approved offers extended by leading lenders available on financial products like loans against property, home loans, etc. These offer simply the loan application and minimise the cost of borrowing. Willing individuals can check their pre-approved offers by submitting their names and contact details.

To sum up, the occupancy certificate is an essential document securing one’s investment, declaring that the project has complied with approved plans and protecting one’s ownership rights. Furthermore, this certificate plays an essential role in the financial sector while granting or extending a credit option.