If you have purchased or intend to purchase a residential or commercial premises, you will often come across real estate jargon such as ‘building without OC’ or ‘building with OC’. Understanding what an OC is, when it is issued and what the consequence of non-issue of OC is will help you make a more informed decision about what property to buy.
What is an OC?
An OC or occupancy certificate is a certificate issued by the municipal authorities permitting occupation of any building which has provision for civic infrastructure such as water, sanitation and electricity.
When is it issued?
After completion of construction, the developer or promoter applies to the municipal authorities for issue of a Building Completion Certificate and Occupancy Certificate. The municipal authorities verify whether the construction has been done in accordance with the sanctioned plans and applicable law. If yes, the municipal authorities issue a Building Completion Certificate and thereafter, an Occupancy Certificate.
What is Part OC?
On the request of the developer or promoter, the municipal authorities may issue Part Building Completion Certificate followed by Part OC. As the name suggests, Part OC is issued for part of the construction completion before completion of the entire work. For example, if a building of 30 floors is being constructed and 20 floors have been completed with all civil and other works, the developer or promoter may apply for Part OC for the 20 floors so that flat purchasers can take possession and reside in their flats on those 20 floors, without having to wait till completion of civil and other works of all 30 floors.
What is the importance and significance of an OC?
Anyone intending to undertake development or redevelopment work is required to obtain permission from the municipal authorities. These applications for permission include measures proposed to be taken for hygiene, sanitation, drainage, regular electric and water supply and compliance with fire norms. After construction is completed, the municipal authorities scrutinize and verify whether the construction has been undertaken in accordance with sanctioned plans and whether the above measures for public health and safety have been provided for. Only after satisfying itself about the same does the municipal authority issue an OC. An OC therefore, is a certificate from the municipal authorities that the building is fit for human occupation, all necessary civil infrastructure is in place for the health and safety of the occupants and there is no foreseeable risk, damage or danger.
What is the consequence of living in a building without an OC?
For a developer or promoter, the law casts an obligation on developers and promoters not to hand over possession to flat purchasers till the receipt of OC. In case of contravention by the developer or promoter, there are penalties that may be imposed on such developers or promoters. In the case of flat purchasers, eviction by municipal authorities is a likely consequence. Further, living in a building without an OC may pose risk to the health and safety of the occupants. If an OC has not been issued, it would imply that certain legal compliances are pending, In the absence of an OC, electric and water supply to such building may also be severely restricted and flat purchasers may have to pay significantly more for such facilities or arrange for them independently.
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