Date: November 16, 2022 Author: Team Piramal Realty

Commencement certificate for real estate – meaning, documents, & more

Under the RERA Act, every project must be registered with the Real Estate Regulatory Authority of the state in which it is located. This is crucial because nobody likes to be caught off guard after investing. The commencement certificate is one of the documents that must be checked before investing in a property. This can be accomplished by reviewing the project’s registration documents. Given all the discussion around RERA, it is critical to understand what it is and how it impacts all prospective homebuyers.

In the section below, we will discuss the commencement certificate’s meaning and the documents required for it. So, if someone wants to invest in real estate, they should make sure to complete their research and check for the commencement certificate along with various other documents.

Let’s get started.

What is a Commencement Certificate?

A commencement certificate must be obtained from the relevant competent authority before a developer can begin work on a property and is one of the essential documents. When a developer presents his proposal, the local authority/competent authority shall provide its approval subject to the builder obtaining various no-objection certifications, sanctions, and permissions for the development from several agencies.

There may be heavy penalties as well as demolition of the property if construction begins without a commencement certificate. So, it is better to get the certificate before commencing construction.

Commencement Certificate and Occupancy Certificate

The local authority issues a commencement certificate before beginning the construction work on the property. This certificate of commencementmeans the builder can start construction in accordance with the approved plans. On the other hand, an occupancy certificate is issued by the local authorities once they have inspected the property and confirmed that it meets all relevant health and safety standards and the building is constructed in accordance with the approved plans. This certificate enables purchasers to occupy their brand-new residences.

Essential Documents Needed to Obtain a Commencement Certificate

As we have discussed the commencement certificate’s meaning, the following is the list of documents required for it:

A completed and signed application form
Buyer’s high school diploma or equivalent
Buyer’s college/university transcript
Payment for the certificate fee
Photograph of the building
Copy of Approved Plans

How Can a Developer Obtain a Commencement Certificate?

The following factors are considered by local authorities when issuing commencement certificates:

As officials conduct inspections and check the site, the developer or builder must present the project’s plan to the relevant municipal government.
The project proposal must be presented to the local authority with a No-Objection Certificate (NOC) obtained from several government agencies, including the fire, sewer, water, and power departments.

The certificate is often given out in 2 steps, covering the superstructure and whenever the building reaches the plinth area.

Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim /disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.