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Tata Capital > Blog > Loan for Home > How Important Is Occupancy Certificate

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How Important Is Occupancy Certificate

How Important Is Occupancy Certificate

Purchasing a house is not an easy task. Months of house hunt, years of savings, extensive research, and taking a loan, you have to go through numerous steps before buying. The homebuying process also entails managing lots of paperwork.

And an occupancy certificate is one such imperative document among others. What is it, and how important is it? Keep reading the article to know in detail.

What is a house occupation certificate?

The occupancy certificate is a legal document that proves that the construction of the building/house conforms with the authorized plan and under local laws. Both builders and homeowners can obtain an occupancy license. When this is missing, it can make it difficult to get basic conveniences such as water and sanitary connection, among many other things.

If you plan to buy a house with a loan, many lenders and financial organizations will refuse to grant you money unless you obtain the required paperwork from the appropriate authorities.

Importance of house occupation certificate

  1. The following information is communicated to the authorities by the occupancy certificate:
  • The property is under the approved plan and within the laws.
  • It adheres to the building code.
  • Fulfillment of all of the additional requirements.
  • All necessary clearances, such as the fire no objection certificate (NOC) is in place.
  1. Your property or building may be ruled illegal and even demolished without a valid OC.
  1. Without occupancy certificates, requirements such as water, sewage connection, electric supply, and others are inaccessible. It is mandatory to have a valid occupancy license to avail all these amenities. 
  1. A House occupation certificate is also mandatory for home loans or loans for the purchase of a resale flat.
  1. You will also be not allowed to market a property without an occupancy certificate if you bought it without one.

Steps of Application for occupancy certificate

A builder can send an application for an occupancy certificate within 30 days of the project's completion. You can also apply for an OC as a property owner. Before submitting your application or completing the online occupation certificate form, make sure you meet all the occupancy certificate requirements. You can contact your local corporation, municipality, or the issuing body to know about all the relevant paperwork.

You can follow the following steps-

  1. Visit the authority: As a property owner, you should locate the governing body closest to your home or the jurisdiction in which your region falls. Then, go to the office to learn about the occupancy certificate requirement. If you're using an online application, double-check the website's address and functionality.
  1. Fill in your application for occupancy certificate: Once you know your authorities and are aware of all the requirements, fill out the form and other details asked in it. You mustn't make any mistakes in form filling.
  1. Submit and maintain track: Once you have filled the form and attached all the needed papers, submit it in person or online. Keep track of your application as well. Make sure you know how to check the status of your occupancy certificate online if you're using a virtual application.

In most cases, you will receive your occupancy license within 30 days of applications. If not, you should contact the authorities to enquire about the delays.

Documents required for occupancy certificate

  • A copy of the approved construction plan
  • Certificate of commencement
  • NOC for pollution and fire
  • Completion certificate
  • Area calculations sheet approved by the commissioned architect.
  • Clear photos of the house or property
  • Images of the Solar Panels that are clear (If required)
  • Proof of rainwater collection infrastructure exists
  • Tax assessment with tax paid receipts

How to check the status of the occupancy certificate?

If you have applied for OC, you can visit the authorities to directly enquire, and for an online occupation certificate, you can visit the website of your local real estate regulation authority and check the status. It is only allowed if the property is properly registered under the statute.

Occupancy certificate requirements for verifying the status of an OC vary by state. Furthermore, the RERA has made it essential for builders to report progress in their projects to the local real estate regulatory authority regularly.

My rights as a property owner - for you

If your builder refuses to present an OC, you can consider using your legal rights as a property owner. You can serve a notice on the builder requesting that they submit an application and send a copy of the OC within a month. If not, you can reach consumer forums and take their help to obtain the document.

You must keep in mind that this is always a critical document. You can fill out the application for an occupancy certificate on your own, but you must know how to check the status of the occupancy certificate. This will allow you to keep track of the builder's progress.

To sum up

Many of us consider buying a house to be a significant step in our lives, and hence we must ensure that all of the necessary paperwork is present. One blunder could jeopardize your ownership and land you in a legal struggle that will drain your resources and time. As a buyer, you must check that your builders are progressing with the building or sale in a legal manner by obtaining an occupancy certificate. It is preferable to take all necessary safeguards before making a purchase than to continue repairing it for years.

If you are looking for loans to finance your house purchase, look for Tata Capital Home Loan. We offer a wide range of home loans at attractive interest rates starting at just 6.85%. Avail of easy repayment options, custom EMI plans, and a hassle-free borrowing process. Visit our website right now to learn more and apply.

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