An occupancy certificate, usually called the OC, is issued by the local planning or municipal authority after a building is complete. It confirms that the building was constructed according to the sanctioned plan and meets the conditions for occupation, such as structural safety, fire safety and basic services. Until a building has its OC, it is not legally fit to be occupied.
Why the OC matters to you
- Legal possession. Moving into a flat without an OC exposes owners to penalties and disputes with the authority.
- Utility connections. Permanent water, electricity and sewerage connections are commonly linked to the OC.
- Home loans and resale. Lenders look for the OC on completed properties, and a future buyer’s bank will ask for it when you sell.
- GST. As a general rule, GST does not apply to the sale of a residential unit after the completion or occupancy certificate has been issued, because it is then a sale of a finished building rather than a construction service. Your chartered accountant can confirm how this applies to your purchase.
OC and completion certificate
A completion certificate records that construction is finished as per the approved plan. The occupancy certificate goes a step further and permits the building to be occupied. Different authorities issue and name these documents slightly differently, so what matters is that the building you are buying has the certificate that allows occupation.
How to check an OC
- Ask the developer for a copy before you pay a booking amount.
- Check the name of the issuing authority, the date and the reference number.
- Make sure it covers your block or tower, not just a different phase of the project.
- Check that the project details match the RERA registration and the sanctioned plan.
- If anything is unclear, you or your lawyer can confirm the certificate with the issuing authority.
What “ready to move” should mean
Some projects describe homes as ready to move when construction is finished but the OC has not been issued. Ask the question directly. A home that is truly ready to move has its occupancy certificate in hand.
Casa Traimbak has received its occupancy certificate. Homes are complete and handed over ready for interiors. Ask our team for a copy during your site visit.
