While taking possession of the dream home, one must remember to take a copy of all the essential documents that validate a residential project. Among all the documents, occupancy certificate of the project is one such document which must be taken from the developer before receiving the possession. In case your developer refrains from giving this certificate, you must take serious steps against them.
With this blog, let’s understand the importance of an occupancy certificate and what steps should be taken by the homebuyer to safeguard them from falling into this trap of the developer.
What is Occupancy Certificate?
An occupancy certificate means that a residential property is all set for occupation by the homebuyer. It also states that the building has been completed under the RERA rules and regulations under the approved plan.
The document which is issued by the planning or the local authority certifies that the project has been developed under the prescribed building law and code. The certificate is issued once the project development is completed. A builder can apply for water, sanitation and electricity connections only after OC is received.
Importance of Occupancy Certificate for Homebuyers
Just like OC is important for the developers, in the same manner, it plays a crucial role for the homebuyers too. It is an important document that validates the legality of the property or the residential unit. Without Occupancy Certificate, the local bodies can take strict action and also raze the illegal structure. A homebuyer may have to pay hefty fines in case they won’t be able to produce OC at the time of any inspection.
Moreover, if you are applying for a home loan or want to sell your property, an OC is needed in both cases.
Steps Homebuyers must take if Developer refrains from giving Occupancy Certificate
- In case, after repeated persuasion, the developer refrains to provide Occupancy certificate, a homebuyer must not opt for the possession of the home. As per RERA guidelines, if a developer is offering possession without receiving the OC, then is it considered as a legal breach of the RERA policy and a homebuyer must not opt for the same in such cases.
- A homebuyer must report such breach to the RERA authorities. According to the RERA rules, a homebuyer can also ask for compensation from the developer if a registered sale deed has not been executed in their favour.
- A homebuyer can also send a legal notice to the developer in case they refrain from providing OC. In case, the registration of the property is done, then a homebuyer can approach consumer forum and send a show-cause notice to the developer.
- In case a homebuyer wants to apply for a home loan or want to sell their home, then they must ask for OC from the developer. If the developer still doesn’t pay attention to it, then you can also file an RTI to the concerned department asking for the reason of delay.
- Finally, it’s important for a homebuyer to remain alert in case of Occupancy certificate. Many a time, a developer just to secure the final installment of the unit, apply for OC of the project and dispatches the possession letter to the buyer. In case a buyer resists to do so, the developer asks to submit the last and final installment that includes security deposit, maintenance fees, etc.
So, it’s advisable not to fall into this trap and take necessary action against such fraudulent developers.