Keys are not the finish line
For many first-time buyers, possession means getting the keys. Legally, two certificates matter as much as the keys: one confirms the building was built as approved, the other permits people to live in it.
The two certificates
- Completion certificate (CC): the project was built according to the sanctioned plan and specifications. RERA describes it in section 2(q).
- Occupancy certificate (OC): the building may be occupied, with water, sanitation and electricity in place. RERA describes it in section 2(zf).
Different states and local bodies use different names, but the two ideas stay the same.
Who must get them
Not you. Section 11(4)(b) of RERA puts the responsibility on the promoter to obtain them and make them available to buyers, individually or through the association.
Who issues them
Usually the same authority that sanctioned the building plan. If one body approved the plan and a different body issued the certificate, ask why.
Partial OCs
Large projects sometimes get an OC for one tower or phase at a time. That is allowed in many places. Check that the OC names your tower, and ask about the common facilities that may not be finished yet.
"Ready to move": the brochure and the law
In a brochure, "ready to move" can mean the building looks finished. In law, the useful meaning is that an OC has been issued. Ask for the OC whenever you see the phrase.
It also changes tax. A flat sold after the completion certificate is issued is not charged GST, while an under-construction flat is, with the tax split equally between CGST and SGST.
Risks of moving in without an OC
- Permanent water and power connections may be delayed.
- Banks may hesitate on resale loans.
- The building may not match the sanction, which can bring penalties.
- Your own home may be harder to sell later.
Common areas come next
Under section 17(1) of RERA, the promoter must execute a registered conveyance deed in your favour, and hand over the common areas to the owners' association. Where local law does not set a time, this is to happen within three months of the OC.
Checking a certificate
- Ask for a copy of the OC and CC.
- Check the authority name, number and date.
- Check that the survey numbers and tower name match.
- Look for it on the project's RERA page, where documents are often uploaded.
Our first-home guide covers the whole journey, from booking to moving in.
A worked example: what a missing OC can cost
Here is an illustrative case. Meera has a ₹65 lakh flat with a home loan. The builder offers her keys before the OC is issued and asks her to start paying maintenance. She now pays rent of ₹22,000 a month and her full EMI, while she cannot safely move in. If the OC takes six more months, that is ₹1.32 lakh in rent she had hoped to stop paying.
If the agreed possession date has passed, section 18 of RERA gives her a choice. She can withdraw and get a refund with interest, or stay in the project and get interest for every month of delay until possession. A handover without an OC is not lawful possession in most places, so she should ask in writing when the OC will be issued.
Step by step: your possession day
- Ask for the OC first, before any final payment or maintenance demand. Check it names your tower.
- Check the final demand letter. Compare it with the payment schedule in your agreement for sale. Ask about any new charge.
- Do a snag inspection with a checklist: walls, floors, tiles, doors, windows, plumbing, electrical points and waterproofing. Take dated photos.
- Write down the snags and get a signed acknowledgement with a date to fix them.
- Read the meter readings for water and electricity on handover day, and note them on the possession letter.
- Collect documents: possession letter, OC copy, warranty cards, the approved plan and the list of fittings.
- Arrange registration of the conveyance or sale deed if not already done, and apply for khata transfer.
Defects after you move in
Under section 14(3) of RERA, if you report a structural defect, or a defect in workmanship, quality or services, within five years of possession, the promoter must fix it within thirty days at no charge. If they do not, you are entitled to compensation. Report defects in writing, by email, and keep copies.
Common mistakes
- Signing a possession letter that says you accept the flat "in good condition" before you have inspected it. Add your snag list or write "subject to snags listed".
- Paying the final instalment before seeing the OC. It is your best leverage.
- Not checking the OC date against the possession date. If possession came before the OC, ask why.
- Missing the two-month window. Section 19(10) asks you to take possession within two months of the OC. Plan your move and interiors around it.
- Losing papers. Your bank, the association and a future buyer will all ask for the OC. Keep a scanned copy in two places.
Questions to ask the builder before booking
- Which authority sanctioned the plan, and who will issue the OC?
- Will the OC come tower by tower or for the whole project?
- What is the possession date in the agreement for sale?
- Will common facilities be ready at possession, or later?
- Who handles the conveyance deed and the handover to the association?
Planning the money side of possession? Our EMI calculator helps you see how the final payments fit your budget.
Words in plain English
- Sanctioned plan: the building plan approved by the local authority before construction starts.
- Possession letter: the builder's letter handing you the flat, with the date.
- Conveyance deed: the registered document that transfers title to you. In many purchases this is the sale deed.
- Association: the body of flat owners that runs the building after handover.
- Partial OC: an occupancy certificate for part of a project, such as one tower.
The tax side, worked out
Illustrative arithmetic. On an under-construction home outside the affordable category, GST is 5% without input tax credit. On a ₹65 lakh price, that is ₹3.25 lakh, split as ₹1.625 lakh CGST and ₹1.625 lakh SGST. GST is generally worked out on the value excluding land, and your builder's invoice will show the basis. If you buy a finished flat after the completion certificate is issued, no GST is charged. That difference is one reason the certificates matter to your budget, not just to your paperwork.
Your home loan matters here too. Under the old income-tax regime, interest paid during construction can be claimed in five equal parts starting from the year construction is completed, within the section 24(b) limit. So the completion date also affects when tax relief begins. Check the details with a chartered accountant.
Where to look for the certificates online
Under RERA, promoters upload project documents and quarterly updates on the state RERA website. In Karnataka, search the project on the K-RERA website using its registration number. Documents such as the plan sanction and, later, the OC are often listed there. If the OC is not uploaded when the builder says it has been issued, ask for a copy and check the authority that issued it.
The short version
No OC, no final payment, no move. Get the OC and CC copies, check them against your tower and plan, inspect before you sign, and keep every paper safe. That simple order protects your money and your home.