In essence, the OC signals the government's seal of approval, authorising habitation in the built structure. Read on to understand what an OC is in real estate, why it matters, and its impact on various stakeholders.

What is an Occupancy Certificate?

The OC full form in real estate is an occupancy certificate, a legal document issued by a local municipal body or other authority once construction is finished. It certifies that the building adheres to:

  • Approved building plans and designs
  • Relevant zoning laws and building codes
  • Safety norms like fire safety and structural stability
  • Other applicable laws and environmental regulations

By issuing an OC, the authorities confirm that the building is safe for a line of work and meets all necessary compliances. It indicates the property is ready for residents or owners to move in. When purchasing a home from reputable developers like Piramal Realty, these verification processes are significantly simplified.

For example, Piramal Aranya has streamlined this process, with Avyan Tower (Wing A, MahaRERA No - P51900003324) receiving its OC 21 months ahead of schedule, ensuring top-quality compliance. Additionally, Piramal Aranya includes Wing B (Arav Tower, MahaRERA No - P51900018039), Wing C (Ahan Tower, MahaRERA No - P51900020330), and Ahan II (MahaRERA No - P51900051735), all designed to meet the highest standards.

Importance of Occupancy Certificate

The occupancy certificate has a wide-ranging importance in real estate:

Importance of Occupancy Certificate

1. Ensures Safety

The building's certificate of occupancy reassures tenants that it complies with necessary safety regulations. It guarantees that components such as fire exits, seismic resilience, and structural design adhere to the most recent safety requirements. When we step into a building, we need the confidence that proper precautions have been taken for our well-being.

2. Legal Compliance

The OC also certifies that the construction has followed all laws and statutory compliances. This includes adherence to building codes, environmental rules, zoning regulations, and other applicable norms. Without a building occupancy certificate, the construction is considered unlawful.

3. Facilitates Real Estate Transactions

The availability of an OC makes it easier to conduct real estate property transactions like sales, purchases, and mortgages. It proves legal compliance, safety, and completion status to all parties involved – buyers, sellers, bankers, regulators, etc. Banks usually require an OC before approving home loans on a property.

4. Enhances Property Value

Getting an OC boosts the market value of the building significantly. Since an OC signals legal clearance, buyers consider OC properties more valuable than those without occupancy certificates. This also makes further transactions like resale easier.

5. Financial Implications

Builders rely on the OC to get their final payments after project completion. With the OC, banks will release funds to developers. Developers can get a partial occupancy certificate (POC) for large projects developed in phases. This allows them to start collecting payments on finished sections even while construction continues in other wings/towers.

6. Construction Oversight

The OC process brings transparency to construction quality and adherence to regulations. The final structural and compliance reviews before issuing OC certificates encourage developers to follow the rules during building. Obtaining OC necessitates construction oversight by authorities.

How to Get an Occupancy Certificate?

The process of securing an occupancy certificate generally involves the following key steps:

1. Application Submission

The builder must formally apply to the relevant municipal body or development authority requesting an OC. This application should be accompanied by approved building plans, completion papers, copies of NOCs from various departments, and other supporting documents as required.

2. Document Verification

The authorities thoroughly check the submitted application and attached documents for completeness and accuracy. This ensures all necessary paperwork is in order before further processing.

3. Site Inspections

Designated officers will then conduct on-site inspections of the property to verify compliance with various structural safety norms, fire safety codes, zoning bylaws, and other standards. Ensuring conformity to regulations is vital.

4. Violation Correction

If any non-compliance is observed during the inspection, the developer must adequately correct those violations before issuing the occupancy certificate. Examples include retrofitting fire systems, installing emergency staircases, or fixing faulty electric systems.

5. NOC Issuance

After verifying documents and conducting satisfactory site inspections, the supervising authority issues a no-objection certificate (NOC) indicating its approval for granting an occupancy permit subject to payments.

6. Fee Payment

The builder must then pay the necessary administrative charges and processing fees to the governing bodies as applicable. This allows them to proceed to obtaining final occupancy approval.

7. Final Approval

The authorities will issue the final occupancy certificate if all conditions are appropriately met without deviations. This officially permits legal occupancy of the building.

OC Impact on Homebuyers

Home buyers must ensure that the apartment has received occupancy certificate (OC) before taking possession of the same. Without an OC, buyers can face eviction or demolition risks if the home remains unauthorised. It is also mandatory to get utilities like water and electricity connections.

Banks also require an OC copy to approve home loans in case of completed projects. Most critically, an OC saves buyers from major legal troubles regarding property ownership or resale issues in the future. Therefore, checking the availability of OC for any property before purchase should be an essential due diligence step for all home buyers.

Partial and Revised Occupancy Certificates

Real estate projects, such as real estate businesses, are often developed in phases spanning multiple buildings and towers. In such cases, authorities may issue partial occupancy certificates for separate wings or blocks as they are completed. Later, a combined OC is given.

Revised occupancy certificates may also be issued. If any changes are made to the building later as per approved plans, a revised OC may be needed even for existing buildings.

Digitisation of OCs

Many states now facilitate online applications and the tracking of occupancy certificates through portals integrated with local urban bodies. Homebuyers can also search for project details through state RERA websites where builders must declare OC status. Digitisation streamlines and brings transparency into the OC system.

The occupancy certificate (OC) is a critical milestone that indicates a building’s readiness for habitation. It ensures that the construction complies with all laws and safety parameters. The availability of OC has a wide-ranging impact on homeowners, investors, bankers, developers, and all real estate stakeholders.

As it ensures legal sanctity and safeguards buyer interests, all property purchasers must review OC status before transaction decisions. The digitisation push around OCs also enables easier tracking of this vital document’s status.



Disclaimer- This article is based on the information publicly available for general use. 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 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.