Why is a completion certificate important?

This article will serve as a handy guide for homebuyers to learn about what is a completion certificate, why it is awarded, and what its significance is.

What is a completion certificate?

A completion certificate is one of the most crucial documents that a homebuyer must check before buying a residential property. It is a legal document awarded by a local development authority or municipal corporation to a builder upon the completion of a project. That is why this document is also called the project completion certificate.

A completion certificate denotes that a building or a residential property has been constructed with adherence to all safety norms and regulatory measures.

How does a builder obtain the completion certificate?

Whenever a builder or construction company plans to start the construction of a new housing project, it needs to obtain a layout plan approval from the state Government or local municipal body. Similarly, upon the completion of the construction of a building or project, the builder is required to apply for a construction completion certificate.

Then, the designated authorities or officers from the municipal corporation inspect the entire construction and award a completion certificate to the builder if all norms are followed. A building completion certificate is a mandatory document required for all types of construction, be it for residential, commercial, or industrial purposes.

Importance of Completion Certificate

The importance of completion certificate for builders

A project completion certificate is of utmost importance for a real estate builder or developer. It helps them legalize their construction and thereafter, sell their units to prospective property buyers. The points mentioned below establish the significance of a completion certificate for builders:

• It contains all the information about the project, including the builder’s name, location, area, height, etc.
• It proves that the construction of the building is done as per all safety norms and regulations laid down by the Government of India for real estate properties
• It is a pre-requirement for getting water, gas, and electricity connection for a building or real estate project.
• A builder can apply for an occupancy certificate only after getting the completion certificate. An occupancy certificate is essential to prove that a building is fit for living or occupancy.

The importance of completion certificate for homebuyers

Many homebuyers tend to check the completion certificate while buying a residential property. A construction completion certificate is a vital document that carries immense significance for property buyers.

• It inculcates a sense of security and peace of mind in them that the building in which they are investing has been built with adherence to the Government’s safety guidelines.
• It established the fact that the building or a project in which they are investing their money is not illegal.
• It helps them claim the benefits of the property tax.
• For residential buildings, a completion certificate is essential to get water and electricity at domestic rates instead of commercial rates.
• In the absence of a completion certificate, the Government can seize property, and the residents may be asked to vacate it.
• In case a buyer may want to sell his or her property in the future, he or she may be asked to show the completion certificate by the prospective buyer.

What are the details mentioned in a completion certificate?

A project completion certificate carries several details about the property as well as its builder. Below are the details mentioned in a completion certificate for the residential building:

• Name of the project
• Name of the builder
• Location and identification of the project or land
• Details of the approved layout plan
• Approved height for the project
• Distance from the road and other buildings
• Other information as per building standards

The final words

As a homebuyer, one must thoroughly check all the documents before buying property from a builder or reseller. A construction completion certificate is one of the most vital documents that prove a project has been built as per the Government’s safety norms and obligatory regulations. A completion certificate ensures that the buyer is buying safe and legal property.

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.