After letting you know about various documents related to the home buying procedure, we are now peeling-off another layer of certificates that is essential to check especially by the aspiring prospects. After Occupancy and Encumbrance, we are now listing the concept and advantages of the Commencement Certificate.
Concept of Commencement Certificate
The local authority issues this legal document to the developer/builder for the construction of a housing project under their jurisdiction. The developer/builder is required to have a sanctioned site plan/layout in order to receive the Commencement Certificate to begin the project’s construction.
Procedure to Obtain the Commencement certificate for the Developer/Builder
Here are the things that a local authority considers before issuing the Commencement Certificate.
The developer/builder must submit his/her project plan to the concerned department as the officials inspect the land and also carry out some primary checks if required.
The developer/builder is also required to submit the No-Objection Certificate [NOC] received from various Government offices, including water, fire, sanitation and electricity department.
The Commencement Certificate alias CC is issued in two phases. In the first phase, the developer/builder has to wait for the inspection by the officials related to town planning and engineering departments to obtain this certificate.
After receiving the Commencement Certificate for the first phase, the developer/builder is now required to build the basic structure of his/her housing project. The authority issues this legal document for the second and final stage only after inspecting the structure built within the premises of the particular area.
What is the Need of Commencement Certificate for Home Buyers?
The home buyers must cross-check all documents related to the property before finalizing a deal as the absence of one legal document can cost you a big amount. So, here are the things a home buyer must know.
Ask the developer/builder to produce the Commencement Certificate issued by the local authority. Don’t prefer home buying in any housing project where the developer/builder fails to showcase the CC issued to him/her by the concerned authority.
Check if the floor/unit you are planning to buy is listed in the Commencement Certificate. As you must know if the developer/builder is selling you a legal housing unit or not.
The absence of the Commencement Certificate while buying a residential unit suggests that this is an illegal Property and you must cancel the deal immediately. As, buying of this property, clearly makes you the owner of an unauthorized property as per the law.
A person is at fault in case he/she buys a home in an illegal housing project and thus the authority has the right to penalize the resident with fine according to the laws.
Lastly, this certificate secures you as a property owner with clear title, dues and clearances from various department related to housing.
Difference between Commencement and Occupancy Certificate
The commencement certificate is a legal document issued by the local authority to the developer/builder in order to begin the construction of a housing project according to the approved plan. Whereas, the Occupancy Certificate makes the property owner eligible for all amenities that are provided by the local body such as road, water, electricity, sewage and sanitation.
Difference between Commencement and Encumbrance Certificate
Known as CC, the Commencement Certificate is the first legal step to start the construction of any housing project under the RERA Act. On the other hand, Encumbrance Certificate showcases the liability-status of the property. For example, the home loan taken against the property, mortgage loan against the property and more.
Difference between Commencement and Completion Certificate
The commencement certificate legalizes the construction of a housing project by the local authority. Whereas, the Completion Certificate is a proof that the particular residential project is complete and this living structure does not violet any rules laid by the Government for the construction of housing projects anywhere in the country.
Now, the housing projects with RERA registration number are only legal and thus you must not fall for attractive deals/offers before checking the RERA details.