After waiting for years, when Nitesh Sharma finally received communication about the possession of his new home, his joy knew no bounds. With all his research, he knew that before moving in, he must ask for the occupancy certificate (OC) from the builder. On doing so, he was assured that the builder and applied for the OC and he will get it soon. Despite being a well-informed buyer, Nitesh took the possession as he was spending on rent as well as EMIs. While Nitesh got the OC within a few weeks of moving in, many buyers are still waiting.
Before we delve further, let’s understand a bit about the occupancy certificate.
The classic definition
Occupancy Certificate or an OC certifies that the construction of the building has complied with the approved plans. It is issued by local municipal authorities or the building proposal department once the building has been completed and is ready to be occupied. Simply put, without an OC, your building has not been awarded a ‘pass certificate’.
According to the Real Estate (Regulation and Development) Act, 2016, it is defined as “the certificate, or such other certificate by whatever name called, issued by the competent authority permitting occupation of any building, as provided under local laws, which has provision for civic infrastructure such as water, sanitation and electricity.”
Why is it important?
The importance of occupancy certificate is clearly stated in Section 5.6 of the Bangalore Municipal Building Bye-laws 2003.
“The Authority shall decide after due physical inspection of the building and intimate the applicant within thirty days of receipt of the intimation whether the application for occupancy certificate is accepted or rejected. In case, the application is accepted, the occupancy certificate shall be issued in the form given in Schedule IX provided the building is in accordance with the sanctioned plan.”
Thus, after the construction is complete, the builder must apply for an occupancy certificate to the statutory authority (BBMP/ BDA). As mentioned above, if the construction is done in line with the sanctioned plan, the authority is supposed to issue the OC within 30 days.
In an ideal scenario, Nitesh should have refused to take the possession as an application for Occupancy Certificate doesn’t really guarantee anything. In such cases, it is good to send a written communication to the builder stating that you will only accept possession once the OC is issued.
Took possession on temporary OC? Here are your options
If you have taken possession on temporary OC, then the first step should be to ask the builder for a permanent OC on completion of the project. Do regular follow-ups on the timelines provided by the builder.
If the builder is not obliging, you have all the rights to move the court and file a complaint. Involve a lawyer and send a legal notice demanding the document. You can reach out to consumer court or your state’s RERA authority.
Checkpoints
- With RERA in place, there’s much transparency in the system now. RERA mandates that all builders update the developments in the project regularly. Thus, a buyer must always check the web portal of the concerned RERA for the project-related details.
- Check the builder’s previous projects. If OCs have not been issued, the builder is best avoided.
