Occupancy Certificate: A must-have legal document!

Apartment buying involves procuring a number of important and mandatory documents. Occupancy Certificate (OC) is one such document, which is in place to safeguard the interests of an apartment buyer. This document is obtained by the builder from the office of the local civic authority such as BBMP or BDA in case of Bangalore. The OC essentially tells you that the owner can legally occupy the building. In Bangalore, this is a mandatory document for an apartment complex having more than five units.

Why is OC important?

OC is an essential legal document that has to be obtained by the builder once the construction is complete. This ensures that the building has been constructed in a completely legal way adhering to the approved plan. Besides, the OC gives the buyer the license to apply for Khata. Interestingly, OC is of no account during property registration. As a result, buyers sometimes believe that this document is pointless. However, without a proper OC, an apartment owner may sometimes be deprived of essential amenities such as electricity and water. You may also face a threat of eviction if you don’t possess an OC.

Having an OC serves another important purpose. This is a mandatory document if you are applying for a home loan, while buying either a new flat or a flat on resale.

Key requirements for obtaining OC

Following are some of the key requirements for obtaining an OC:

• Built as per the sanctioned plan – including plinth, setback, height, FAR.
• Facilities like club house, party hall, etc. need to be in the sanctioned plan.
• Mere 5 per cent deviation in building is allowed.
• Fire Department clearance
• Electrical Inspectorate Certificate, including lifts, waste management area and on-site composting facility,
• Sewage Treatment Plant of adequate capacity and treatment to standard, certified by the Pollution Control Board
• Rain water harvesting
• Airports Authority clearance (if within the range of an airport).
• An owner cannot make external changes in his unit without the authorization from the local civic body.
• Sufficient safety measures should be provided for basement car parking.
• Only the basement and ground floor can be utilized for car parking.
• Footpath facing the building should be in good condition

When is the OC issued?

Usually, the builder provides the OC once the building is ready for occupying. A developer must send an application along with other documents such as building plan, commencement certificate, completion certificate and photographs of the completed building, for obtaining the OC to the local civic body within 30 days of completing the construction. The building is then inspected by the authority for compliance of local laws. The authority then intimates the builder within 30 days of receiving the completion intimation whether the OC has been accepted or rejected. In case there are minor deviations from the approved plan, the civic body may impose a penalty and regularise the building, and issue an OC. The penalty is usually charged according to the extent of deviation.

A buyer may obtain the document after signing the agreement or before moving into the flat. However, it has been increasingly witnessed in Bangalore that builders often do not apply for the OC at the early stages of project completion, citing additional costs. It may also be possible that the project may be denied an OC. Several builders have been seen mentioning deviations from the approved plan as well.

So, what is wrong about occupying a building without an OC?

Well, to answer it simply, no occupancy certificate means that the building has not been given a “Pass Certificate” by the concerned authority. As such, it does not have all the mandatory infrastructure or clearances that make the building inhabitable.

OC in different cities

In order to combat the increasing concern of illegal construction in various metros, the local governments have proposed and implemented regulations regarding an OC. In Hyderabad, the Greater Hyderabad Municipal Corporation (GHMC) has proposed to connect OC with property registration. In Mumbai, according to the Bombay High Court, it is illegal to move into an apartment without an OC.

However in Bangalore presently, OC is not mandatory for registering the property. But, the khata for the property will not be issued unless the building has the OC. OC is issued under the provisions of by-law 5.6 and 5.7 of the BBMP (Bruhat Bangalore Mahanagara Palike) Building By-Laws 2003.
Hence, before you occupy an apartment, do ask your builder or seller for the occupancy certificate of the unit.