An Occupancy Certificate is a document that declares a commercial or residential building ready for occupation. It is issued by the local authority to the developer within 30 days of application, certifying that the building has been constructed according to the approved plans and is in compliance with the local state laws. Under Section 11(4)(b) of the Real Estate (Regulation and Development) Act, 2016, a developer must obtain an Occupancy Certificate (hereinafter referred to as “OC”) from the local authority.
Only after receiving the OC, allottees can occupy the building to get civic amenities such as water and electricity. The applications for connections can be applied only once the OC is received.
Documents Needed to Obtain OC
To obtain an OC, one must provide a copy of the sanctioned plan, NOC for pollution and fire, completion certificate, commencement certificate, sanctioned plan, area computations (signed by a commissioned architect), along with acceptable photos of the building, photos of solar panels, and rainwater harvesting.
Steps to Obtain an OC
The OC is obtained from the local authority upon submission of the B Khata (Form 11B) application form after the completion of the building construction. Usually, the local statutory body (such as BBMP and BDA in Bengaluru), issues the OC within 30 days from the application date. Below is the list of documents that need to be submitted while applying for an OC:
1. Commencement Certificate.
2. Completion Certificate.
3. No Objection Certificate (NOC) for fire and pollution.
4. Built and section plan.
5. Latest tax paid receipt with the tax assessment.
6. Photographs of the completed project.
7. Pictures of solar panels and rain harvesting.
8. Copy of the sanctioned plan.
9. Calculation sheet of the floor area duly signed by an architect.
Who issues an OC?
OCs are issued by the competent authority permitting the occupation of a building. OCs are generally issued by the authorities of the local government (such as BBMP and BDA in Bengaluru), which declare that the building has been constructed per the plans approved by the competent authorities. The allottees should necessarily ask for an OC.
Who can apply for an OC?
The builder has to obtain the OC. However, the owners of the house can also approach the municipality or the local corporation if they have already occupied the house. The OC can be obtained within 30 days only if the building has been constructed per the approved plans, fire safety standards, and building standards.
Consequences of failure to obtain an OC
In case the OC is not obtained by the builder from the concerned competent authority, it can be deemed that the building does not have the necessary civic amenities and is not constructed per the approved plans by the concerned departments.
Failure to obtain Occupancy Certificate will result in potential allottees holding back on buying the property. If the property does not possess the OC, it can be razed anytime without prior intimation or notice, as it is built without following the basic norms and approved plans. In the absence of an OC, the builders are violating the provisions of the law. The corporation or municipality may ask the apartment owners to leave such illegally occupied flats or impose heavy penalties for ‘regularization.’
If the allottee makes a purchase without the OC, the resale is nearly impossible. It is unfeasible due to reasons like the illegality of the constructed house, permanent civic amenities would not exist, and it can be razed without prior notice.
This blog is written by Vinuthan J, an intern of Smriti Legal LLP.
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