Why you should buy a house that has a Certificate of Occupancy?

A Certificate of Occupancy verifies that a new building has basic amenities such as water, sanitation, electricity, etc.
 

Purchasing a house requires huge capital. Individuals invest their life savings in buying or constructing their dream home. Buying readymade homes such as apartments is the latest trend as it saves time and effort. However, while purchasing such houses, you must be careful and look for a certificate of occupancy that verifies all basic amenities per local norms. Usually, the local government authority issues an occupancy certificate that signifies that a property is ready for possession.

What is a Certificate of Occupancy?
 

A certificate of occupancy is issued by a local government authority or an agency that ensures that a newly constructed property is ready for possession. It verifies that the construction is legal, following all the local regulations and norms of the government. This certificate also states that the building has all civic amenities such as sanitation, water supply, electricity, etc. A prospective buyer must ask for this certificate to avoid fraud and hassles while purchasing a property.

But what if the builder or real estate developer has failed to obtain the certificate of occupancy? In that case, it means either the building is not constructed as per the local authority's regulations, or it misses out on the basic amenities. If you plan to purchase a home, you must ask your builder to produce the certificate of occupancy for the building.

Importance of Certificate of Occupancy

An occupancy certificate is an important document. Every individual purchasing a house needs to verify that the house being purchased is constructed legally through the occupancy certificate. If you buy a property without the certificate of occupancy, you won't be able to sell the property later.

Moreover, the concerned authorities may raze the building, cut off water or electricity supply anytime. Therefore, if the certificate of occupancy is unavailable when purchasing the property, you should refrain from buying it.

An occupancy certificate is a final approval from the local government, stating that the newly constructed building complies with construction rules and follows all the regulations, including civic amenities. If you are planning to purchase a house, you should verify the occupancy certificate.

Since buying a house requires a significant investment, you can go for a home loan. With IDFC FIRST Bank home loans, you get attractive interest rates and zero processing fee if you hold an IDFC FIRST Bank account.

Documents required for obtaining an Occupancy Certificate
 

A builder must submit a few documents pertaining to the construction, plans, and safety requirements. Here are a few common documents required to obtain a certificate of occupancy.

• A copy of the sanctioned plan
• No Objection Certificate (NOC) for both fire and pollution
• Certificate of completion of the building
• Certificate of commencement of construction
• Area computation duly signed by a commissioned architect
• Acceptable photos of the building
• Pictures of solar panels and rainwater harvesting if installed as per the local norms.
  

Time taken to get Occupancy Certificate
 

Usually, the municipal corporation or the municipality is constrained to provide clearance, issue an occupancy certificate, or reject the application within 30 days of inspection. The clearance is usually offered to the applicant if they do not receive communication by the due date.

A certificate of occupancy is a crucial document that every applicant should ask for before purchasing a house. You must be vigilant and pay attention that the property you buy complies with the local norms so that you don't face any negative consequences later.

Disclaimer

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