Occupancy Certificate (OC)

Once a building is finished, the builder applies to the planning or municipal authority. Officials check that it follows the sanctioned plan and the safety rules, such as fire exits, setbacks and services. If it does, they issue an Occupancy Certificate, the formal permission for people to live in it. RERA defines the OC in Section 2(zf) and, in Section 11(4)(b), makes the builder responsible for obtaining it and making it available to buyers.

The OC is the line between a building site and a home. Without it, getting permanent water, sewage and electricity connections can be hard, and many banks will not lend on a resale flat that has none. RERA also ties two dates to it. Section 19(10) asks you to take possession within two months of the OC being issued, and Section 17 asks the builder to register the conveyance in your favour within three months of the OC, unless local law says otherwise.

If you are buying an under-construction home, the OC is something you will receive later. Your agreement for sale should say clearly that the builder will hand over only after the OC is in place.

• Ask for a copy of the OC before you sign the possession letter.
• Check that the OC covers your block and floor, not only part of the project.
• Compare the number of floors on the OC with the building you see.
• On a resale flat, ask for the OC before you pay any advance.