While taking possession of a property, an occupancy certificate is issued by the statutory local development authority. This document gives a builder the permission to let buyers occupy the premises and is mandatory for any building with more than five units.
Now, this is Occupancy Certificate or OC as it is widely known. But have you ever heard about Partial Occupancy Certificate? Well, if not, read on!
What is Partial OC?
Partial OC is granted to large projects that are being developed in different phases or blocks. ‘’Once a specific phase is completed, the concerned authorities (BBMP / BDA-in case of Bangalore) after inspecting the building grants it a Partial OC. Simultaneously, as the next Phase finishes, partial OC is given to that as well and so on. Once the entire project is complete, Partial OC is replaced with one common OC for the entire project,’’ explains Srinivasan, CEO, SNN Builders.
In a nutshell, a Partial Occupancy permit allows only a portion of the completed project to be open for occupancy.
Validity of Partial OC
It is valid until the entire project is completed and the authorities issue the Final OC for the entire project.
What does the law states?
As per Section 5.7 of the Bangalore Building Bye-laws 2003, “No person shall occupy or allow any other person to occupy any new building or part of a new building for any purpose whatsoever until occupancy certificate to such buildings or part thereof has been granted by an officer authorised to give such certificate if in his opinion in every respect the building is completed according to the sanctioned plans and fit for the use for which it is erected. The Authority may in exceptional cases (after recording reasons) allow partial occupancy for different floors of a building.”
Simply put, this means that the builder, on completion of the building, needs to apply to the statutory authority (BBMP/ BDA) for OC.
Is the concept new?
Well, not really. But since phased-construction is gaining momentum, the concept of partial OC is also becoming popular.
Are there any advantages?
From financial perspective, immediate possession is the biggest advantage. Unlike OC, you can also apply for an electricity or a water connection with Partial occupancy certificate.
On the flipside!
With partial OC, you may not get approval for your home loan. Moreover, ‘’you cannot even apply for khata certificate as it is issued only once you have an occupancy certificate. Thus, a buyer has to be extra cautious while selecting a project especially if it is in phases,’’ says Shabeer Sait of Irshads Property matters.
When to Apply?
Like OC, builders need to apply for a partial occupancy certificate also within 30 days from the date of phase/tower completion.
Requirements to be met for a building to get a partial OC
· Clearance from the fire department.
· Waste management areas and composting facilities.
· Proper rainwater harvesting facility.
· Sewage treatment plant.
· Airports Authority of India clearance (if within the range of an airport).
· Electrical inspectorate certificate, including one for lifts.
· Only basement and ground floor can be used for parking of vehicles.
What buyers need to know?
Projects that are being built in Phase-wise development, buyers must insist on getting a partial OC till the entire project is completed. Post that, buyers need to insist on getting an OC from their builder.