Certificate of Occupancy [OC] is an important document showing that the building has been constructed according to the permissible plans and abiding by the local laws. The local municipal corporation issues this document after ascertaining that all local laws have been complied with. The builder is responsible for getting the occupancy certificate. This is an important document as many financial houses ask for it to provide loans and it is even required at the time of applying for water and sanitation connections.
An OC states that the newly constructed home/apartment complies with all the current building codes and is in a suitable condition for safe occupancy by the residents. It is a very important document to have.
How is the Occupancy Certificate issued?
For a new construction home, the OC will be issued to your builder as the entity that pulled the permission to build the house. The certificate is issued after your home has undergone and passed your city’s home inspection process. Each newly constructed home undergoes a series of home inspections during the building process at different stages to ensure that all the building codes are followed. Upon completion a final inspection is done and then an OC is issued to the builder. The builder should then provide the OC to the home buyer at or before closing.
How else is the Occupancy Certificate important?
In many cases lenders require an OC before completing financing for your home. Your insurance company may also require one. In certain states it is mandatory to have an OC before occupancy. Without occupancy certificate it is difficult to get water and sanitation connections. Buildings without an OC can face a lot of legal hassles, they may be considered illegal and not marketable.
Further a lot of problems arise due to non-issue of OCs pertaining to violation of building laws; the buyer suffers as you cannot occupy the property. The last step before the construction work is termed Complete is obtaining an OC, enabling the developer to allot occupation to its members. So not only sale deeds, blueprints etc. are important. But an OC is also a must along with other documents.
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