1. Completion certificate
A standout amongst the most imperative records issued by Building Control is the Completion Certificate. This is the last stage in the application procedure, finishing the procedure. Building Control Surveyors complete nearby reviews at different phases of development. On agreeable completion of the works, a Completion Certificate is issued. This Certificate gives the date of the final inspection carried out and states that, as far as can be reasonably ascertained, the work carried out conforms to the Building Regulations. As the last piece of the procedure, a Completion Certificate is sent to the candidate and every invested individual after a last examination or inspection. Further copies may be issued on request which may be subject to a charge.
Importance of completion certificate
The importance of a Completion Certificate cannot be over-emphasized. It verifies that a property complies with legal guidelines and has been subject to Building Regulations inspections carried out by independent and impartial professionals. For this reason it reassures all those with interests in the conveyancing process such as house owners, solicitors, banks, building societies and purchasers. Some more important points are as follows:
· Completion certificate stands as a proof to the builder’s adherence with National Building code of India, 2005.
· This certificate is necessary for obtaining basic necessities like water, electricity and others.
· It is after receiving a certificate, the water rate gets converted to domestic from non – domestic one, in case of residential buildings.
· The building will be assessed for property tax with effect from date of completion of the building.
· The completion certificate will facilitate payment of final instalment of the housing loan to start repayment of the same.
What if the builder does not have a certificate?
To get the important paper work such as housing loans and property tax rolling, it is compulsory for the builder to have a completion certificate. If in case of of non-accessibility of a completion certificate, purchasers can connect with municipal corporation all alone or occupants can form a Resident's Welfare Association. These measures can only help resident to speed up the process of getting a completion certificate.
For residents, it is advisable to buy property from the builder who have completion certificate to avoid running into any legal hassles. While applying for a completion certificate, the builder is required to pay a certain amount as security deposit. In case no standard is violated, the amount gets refunded. Still, if there should be an occurrence of deviation from the plant, security money does not get refunded.
What if a completion certificate is not awarded?
In the event that new properties work without completion certificates, inhabitants are debilitated to be evicted and the city engineering division will penalize the properties for not paying property taxes. Numerous individuals are ignorant and unaware that a completion certificate is essential to get, before completing installment of a last portion in terms of buying a property. Builders tend to persuade hapless people into buying a property without possessing the appropriate legal documents. Thus, it is essential to press for the developer to obtain a completion certificate, before discharging the last installment to the same. A completion certificate likewise required to guarantee that well being standards or safety, for example, codes likes in cse of fire, accident and other criteria are met.
How to obtain completion certificate?
A completion certificate can be obtained from Chief zonal officer of the municipal corporation/development authority of your city. You and your architect need to submit proper completion certificate application along with following documents:
· Application form which is filled properly
· Sale deed/lease deed photocopy
· Copy of approved building plan and a copy of permission letter by the authority
· NOC from property tax department paid up to date, if any
· Receipt of water tax paid
· Receipt of underground drainage connection charges
· Receipt of electricity cable & road cutting charges paid
· Receipt of bore well permission fee paid, if any
· NOC from the Garden Department
· NOC from the Fire Department (if required)
· NOC for elevator operation (if required)
· Affidavit on Rs 10/- Non judicial stamp paper to be attested by Notary Public/Metropolitan magistrate declaring ownership of the building, details of the architect/engineer engaged for construction and completion of construction as per bye-laws
· Other documents as demanded/ required by the concerned authorities
Documents may vary as per Proposal and case type.
2. Occupancy certificate
Once the builder gets the Completion Certificate, they need to get Occupation Certificate from the community bodies. An Occupation Certificate (OC) is a standout amongst the most vital document with respect to home purchasers are concerned. Be that as it may, don't mistake an OC with the completion certificate. Occupancy certificate authorizes customers to stay in the property. It is issued by the metropolitan authorities after all other related supporting documents, stating that requirements such as building standards, fire and elevator safety norms, drainage and so on, are in place. The legitimate ownership of the Flat by the Owner is valid only with the Occupancy Certificate.
Importance of occupancy certificate
· To guarantee Income Tax benefits on your home advance, your boss may request that you submit Occupancy Certificate alongside the home loan statement.
· Occupying a property without an OC is considered as unlawful and municipal bodies can request you to vacate the property.
· You may need to confront inconvenience in getting water connection or sterile connection or power supply connection.
· Most of the monetary organizations may demand Possession Certificate to endorse home loans.
· You may find it exceptionally hard to find a purchaser if you wish to offer your Flat later on.
· Without an OC, it may be very difficult to obtain Khata Certificate.
Who Needs a Certificate of Occupancy?
It is important to check with your local town because each town has different requirements. Some important motive for demanding a certificate of occupancy are:
· New Construction- The buildings which are newly constructed usually need to apply for a certificate of occupancy.
· Property Conversion- When a property is changing from one use to another, a certificate of occupancy is usually required. For example, a warehouse that is being converted to residential lofts.
· Change of Ownership-When a joint family property, industrial property or other business space changes proprietorship, another new certificate of occupancy is typically required.
· Major Construction-Some towns will expect you to get a certificate of occupancy for development that can change the occupancy of the property or that changes the manner by which you leave the property.
Why is it unsafe to buy a flat without OC?
If a building does not have an OC, it means that the building may not comply with the mandatory regulations and may not have been built as per the sanctioned plan. Such buildings are not considered to be ready for inhabitation and can be considered as an unauthorized structure that has to be demolished.
Without a substantial OC, the local municipal body can start genuine action against the flats owners. In 2014, occupants of a well known building complex in Mumbai's upscale Worli territory were hit with a dash from the blue after their complex was proclaimed unauthorized. At the time of ownership, purchasers ignored the issuance of an OC from the builder. It was simply after that they were asked to vacate their flats that the written work on the divider turned out to be obvious to them. This is only one case, and if purchasers are not cautious about getting the OC, they may confront the accompanying repercussions:
· In the nonattendance of a valid OC, your building can be destroyed as it can be named as an unauthorized structure.
· The OC is vital while applying for a home loan or loan to buy a resale flat. In the event that you wish to offer or hypothecate the property after an interval of time, you won't have the capacity to do as such without a legitimate OC.
· The water connection, sanitary connection or electricity supply can be discontinued without the occupancy certificate.
· The building may be technically unsafe for occupation because of quality of construction, electrical and fire safety, safety of stairs and lift, etc.
· The building may not adhere to the approved plan and may have unauthorized extensions, walls and floors.
· In case of any mishap/accident, occupants of the building cannot hold anyone liable and they may not be eligible for insurance claims.
How to obtain occupancy certificate?
After the construction of a building is completed, the builder or the buyer has to submit an OC application form to the concerned municipal or local development authority. The application form for obtaining OC should be submitted within 30 days of completing the construction. Along with the application, the following documents should be submitted for processing the application:
· Building commencement certificate
· Completion certificate
· Built plan along with elevation, site, and section plan
· No objection certificate from fire force, pollution board and airport authority
· Area calculation sheet of floor signed by architect
· Tax assessment with tax paid receipt
· Photographs of completed building
· Photographs of rain water harvesting and solar panels
· Copy of the sanctioned plan
The authorities will then conduct a physical inspection of the building and will evaluate if the building is constructed according to the approved plan and then, issue the certificate.If there are deviations up to 5% from the approved plan, a fine will be levied based on the extent of deviation. The OC will be issued after the fee is paid.
How you can apply for an OC
As a flat proprietor, you can likewise apply for an OC by contacting the municipal corporation, and if all requirements are set up, an OC is issued maximum within 30 days of the application to the municipality. You should present the same document from the builder to secure an Occupation Certificate.
Common issues with the Occupational Certificate (OC)
· Can Builders issue Partial Occupancy Certificate?
At the point when there are so many or periods of substantial tasks to be created with fluctuating finishing dates, the concerned authority can give an incomplete occupancy certificate for the finished stages. After the completion of whole project, Partial OCs are supplanted by final OC. Do take note of that it can be very difficult to get a home loan with a Partial OC.
· What If You Do Not Pass Inspection?
If the property does not pass the review, then you will be provided with the list of things that should be revised so that your property will adjust to all building and security codes. You will be given a certain amount of time to correct these issues, such as 60 days When you have finished all repairs, you can call to have your property re-reviewed. You may need to pay an extra charge. In the event if you pass, you will be conceded with your Certificate of Occupancy.
· What Happens if You Don’t Get OC?
If it turns out that your town laws expect you to get a certificate of occupancy for the sort of property venture you have or for the work you are doing, and you didn't, you could be fined or even sued by the town. This fine could be for every day you had the property but you were ignorant and you did not have the certificate of occupancy.
· Buying property under construction-
When you buy a property which is under construction, the OC is yet to be issued to the builder and it is not possible for you to get it. Once the building is completed, you should demand the OC from the builder. If the builder refuses to give you the OC, then you must not take possession. In this situation you are protected under local Acts and the builder is required to give you the OC by law. You can file an official complaint against the builder if needed.
If you take possession without the OC, then you are no longer protected and the builder has no incentive to obtain the OC. Also, since the final payment to the builder is done before taking possession, this is an additional push for the builder to meet your terms.
· Builder gives Completion Certificate instead of OC-
Since the builder needs to first apply for the Completion Certificate and afterward for the Occupancy Certificate, it is a tedious procedure. To quickly sell completed houses, some builders might try to give you the CC and tell you that it is the same as the OC. This is seriously misleading and will create years of headache for you. Always ask for the Occupancy Certificate in addition to the Completion Certificate and be wary being misled by dishonest builders.
· Documents in local language-
Since the Occupancy Certificate is issued by the local planning authority, it might be written in the local language. If you are not fluent in the language, it is recommended that you get your documents verified by an advocate’s office. In Marathi for example, the Occupancy Certificate is called Bhogvata Pramanpatra.
Remedies against the Builders
Never accept anything less than the original. Not even the receipt/ invoice (which can be dated and might not hold true) or whatever the builder might call a duplicate, other than the actual Occupancy Certificate.If your builder is not providing you with a Building Completion Certificate and more importantly an Occupancy Certificate then follow the following legal process-
· Ask the builder to give you OC, Issue a legal Notice if necessary.
· File a RERA complaint with help of a good property lawyer in India.
· File RTI to know why OC has not been issued for the project.
· Issue a legal notice directing the builder to obtain an OC.
· Claim compensation in the consumer court if the developer has delayed.
· Note that A Provisional Building Completion Certificate is valid for six months only. The final building Completion Certificate is still required to be obtained by the buyer.
· For ready to move in project- In case it is an older project, the buyers through the flat owners association can either approach the concerned municipal authority directly for grant of OC or file a consumer action before the concerned consumer forum on the ground that non-supply of OC constitutes deficiency of service.
· For under-construction- In case of breach of the obligation by the promoter to secure an Occupation Certificate and provide the same to RERA authority can be approached against the promoter.
During circumstances such as the present, when the builder will be in a rush to speed up completion of improvement work, ensure the required components are set up. As an architect, they have to guarantee that both outer and inner improvement work is finished before offering ownership to purchasers.
Outer improvement works incorporate streets, water supply, sewage and drainage system, power supply transformer, substation, strong waste management and transfer or whatever other work which may have to be executed in the outskirts of, or outside, a project for its advantage, as might be given. Thus, inner development works would mean streets, trails, water supply, sewers, channels, parks, tree planting, road lighting, arrangement for network structures or some other work in th project for its advantage, according to endorsed plans. Not all could be particularly there in all projects however as a purchaser, one needs to guarantee these that they are met by the builder and if they were the part of the plan.