In the real estate industry, the OC stands for Occupancy Certificate. This crucial document attests to the building’s development and construction following the approved plan and structure, adhering to all safety regulations. The Municipal Corporation authority’s local authority issues this certificate to many types of properties, including commercial, residential, and rental properties.
These are the different types of properties in real estate that are developed by real estate builders in the city, after the completion of the construction process, and it tells that the building that has been constructed is ready for the buyer to occupy their purchased property.
Source: Certificate Of
Why is an OC important for a developer for his project?
Under the Real Estate Fields Regulation and Development Act ( RERA), 2016, The issuance of the OC is an important step in the real estate market, and it is becoming more important than before. RERA has made mandatory to all builders that all builders should get issued OC by the authority before giving possession to buyers.
The status will be updated by the authority on the RERA Portal. An authorized buyer should check the status of OC and other details while safety norms are there as per the project plan and other project details.
If the builder fails to get an OC certificate from the legal authority, or any different types of houses in India, that include numerous structures such as farmhouses, bungalows, villas, and so on. If they are not made as per the regulation, then the RERA authority can charge penalties and they can also file a complaint against the builder.
The buyers are also given the authority that they can file complaints against the builder if they find any issue related to the developed property and also if a developer does not issue an OC Certificate.
If you’re looking for a property to buy and aren’t sure what documentation you should check over, contact a PropertyCloud property expert for the best help finding your dream home.
OC is important for various reasons in residential purposes
OC is important because it ensures proper maintenance, resolves disputes, manages finances, enhances safety and security, ensures compliance with regulations, and promotes community engagement.
A legal requirement for occupancy certificate
Issuing an occupancy certificate is a legal requirement that needs to be fulfilled by the developer before the buyer occupies his new home. OC is a certificate proof that proves the building has been constructed in observation with the rules and regulations set by the legal authorities.
The builder or developer can also face legal issues if they fail to secure the OC from the legal authorities.
Safety requirements of occupancy certificate
OC ensures that the building has been constructed in observation with safety measures and regulations. This certificate is issued only after the authorities investigate the building and make sure that the building is safe to reside in.
The OC also certifies that the building has been constructed with necessary fire safety measures in place.
Finance requirements of occupancy certificate
Banks and financial institutes require an OC before they grant a home loan. The certificate serves as proof that all the tallest buildings made in Mumbai city are safe and legally manageable. This ensures that the bank’s investment is secure and it will reduce the risk of default.
Resale Value of occupancy certificate
An OC certificate increases the resale value of the property. new house buyers mostly prefer flats with OC because it gives the assurance that the building is safe and legal and also. A house without an OC may have difficulty finding buyers, which will also affect the property’s resale value.
Transparency of occupancy certificate
The issuing of an OC ensures transparency in the development process of the building. It makes sure that the developer has followed the approved plan and has not made any unauthorized changes in the property’s development and structure or design. This helps to increase the buyer’s trust in the property.
How to obtain an occupancy certificate for developing a project
Depending on the area and the local government legislation, there may be differences in the procedure and prerequisites for acquiring an occupancy certificate.
Application of occupancy certificate
The builder has to apply for the OC to the local municipal authority. This application should have all the necessary documents attached to the application, such as a plan structure blueprint, fire safety certificate, and completion certificate.
Source:- India Filing
Inspection should be done by legal authority
The authority team will inspect the building to ensure that it has been constructed in observation with the approved plan and all the safety measures. This inspection will also have the checking of fire safety measures.
A legal officer should do an observation
If the building is found to be completed as per the plans, then the authorities will issue the OC. If they find any rectification and any changes have been done and It is not as per plan, then they will tell you to rectify before the OC has been issued.
Fees for the application of OC should be paid by the developer
The Builder needs to pay the fees as per the regulation before the issue of OC. Those will vary as per the size and types of property that have been made by the builder.
Can a builder obtain a part occupancy certificate for his project
Yes, can be possible as per RERA ACT,2016. A part of OC will be issued for a specific portion that is ready for the buyers to move to that building, it indicates that this part of the project has been completed and buyers can move and stay in this part of the property.
The process of issuing a Part OC certificate is similar to the process of issuing a regular OC, the builder needs to apply to the local municipal authority with all the documents that are required. After applying, the authorities team will inspect the part that is ready to move for the buyers. They will issue the Part OC Certificate for the completed part of the project.
It is important to note that the builder will allow the buyers to move immediately and make the decision to rent or stay in that property. Only that part has been completed and that part has been given a Part OC certificate by the legal authorities. Additionally, the buyer must ensure that the area they are purchasing is secure and the builder has obtained the Part OC or standard OC from the appropriate authorities.
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An occupancy certificate is necessary for the real estate market
An occupancy certificate is an important document that verifies that a building has been completely constructed by following all the regulations and safety norms that are set by the legal authorities and they are ready to be sold or they can be put on rent.
An occupancy certificate guarantees the safety of the building and its householders and is a legal requirement for the developer to secure before the building can be occupied if the buyer has given token money and made an agreement for that respective property.
Obtaining the occupancy certificate ensures that the building process is transparent, which raises the property’s resale value. To ensure that buyers may move into and occupy the property right away, the developer and buyer make sure the building gets an occupancy certificate.
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