Occupancy Certificate: Why Is It So Important?
Although most of us are concerned about the documents and legal procedures related to the purchase of a new property, we do not care to verify whether it has a valid occupancy certificate. But have you ever considered the consequences of living in a building that does not have an occupancy certificate?
An OC is important for getting water and electricity supply in the building, for mortgage or sale of a flat, etc. It is the responsibility of the builder to get this certificate. But despite its sheer significance, only a few builders seem to have followed the lawful procedure to get it issued. And it is the residents of the building who have to suffer in the long run.
Hence, to save you from any future regrets, here is all you need to know about an occupancy certificate:
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What is an occupancy certificate?
Occupancy Certificate is an evidence of the construction and completion of the building as per the approved plan and in compliance with the local laws related to it. This is why it is also called a Completion Certificate. It is issued by local bodies like the city corporation or the municipality. The law says that abuilder cannot allow the possession of the building to its owners, for any purpose whatsoever, unless he has acquired an occupancy certificate for the same.
In simpler terms, one can say that the absence of an occupancy certificate implies that the building might not have been constructed according to local laws, making it liable to demolition on account of being an unauthorized structure. The OC proves that the building is erected according to set standards and is fit for use.
What are the problems you can face if your building does not have an occupancy certificate?
1- First of all, the non-issuance of an occupancy certificate is a violation of the law. So, even after spending your hard earned money, you may not get to occupy the house due to legal proceedings. To get the certificate issued is the responsibility of the builder but many times they try to grease the official's hands for the certificate instead of following the regular procedure, and this causes problems for the buyers later on.2- For sanctioning the loan, banks usually ask for occupancy certificate along with other documents. It is also required for mortgaging purpose.
3- The absence of occupancy certificate also poses problems in getting water, power or sewage connection.
4- Even if you start living in such a building, because of the absence of a valid occupancy certificate, you will not be able to sell or hypothecate your flat in future.
What can you do if your building does not have an occupancy certificate?
You can give a notice to the builder to apply for an occupancy certificate and handover the copies of the same to the owners within a month of the notice. In case he does not respond to the same, you can file a complaint in the consumer forum requesting it to issue orders for the builder to get a certificate. If this does not work, you can also file a writ against the builder in the court.
One of the popular judgments in this case is that of 'Faqir Chand Gulati Vs. Uppal Agencies Pvt Ltd'. The case was about deviations from the sanctioned construction plan and the non-issuance of Completion Certificate. The Supreme Court found the builder guilty and quoted that such acts not only disturb the planned development of the city but also risk the lives of the inhabitants of the building. Though there are qualified engineers in the local authorities who are responsible for taking care of such matters, it seems that they fail to discharge their duties. The non-issuance of a completion certificate is illegal and the builders cannot escape the consequences of such wrongdoings.
Thus, to save yourself from future headache, you must know your rights and responsibilities. Being informed is the first step towards becoming a smart buyer!
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