Dev Singhraha
Relocation Expert
Buyers especially the first time buyers often tend to ignore or they are not aware of the difference between possession letter or occupancy certificate or what is their actual purpose. Many people get confused among both and consider both documents as the same. But that is not the case. Among all the documents occupancy certificate is an important one which buyers have the complete right to ask for. And if the developer does not provide with the same the buyers can take legal action against the builder.

So here is some basic difference between occupancy certificate and possession letter.

Possession letter is that document which developers gives to the buyer stating the possession date of the property. But the possession letter itself without occupancy certificate is not enough for the having the legal possession of the property. The original copy of the possession letter is required at the bank to secure a home loan.

Occupancy certificate or certificate or occupancy or completion certificate is that document which is issued by the authority or the local government when the construction gets completed. The certificate is a proof that the building has been constructed as per the building laws, regulations and codes. It's a written proof that the property is suitable and ready for occupancy purpose. it is the responsibility of the builder to obtain the occupancy certificate from the authority and is issued only when the project is completed and is in a condition of ready to occupy.

Occupancy certificate is an important document to avail loan from various banks and financial institutions. It is also essential while applying for electricity or water connection. In legal terms, a buyer cannot move into his or her property without the occupancy certificate. It is also required while buying a resale flat. A property with occupancy certificate considered to fetch a good price.

In order to obtain the occupancy certificate these following documents are required for submission:

Commencement certificate for the building
A copy of the sanctioned plan of the building
A  Copy of Building Completion Certificate
Recent receipt of property tax

No Objection Certificate (NOC) copies from Airport Authority or pollution board

Hence, keep these pointers in mind so that you as a buyer is not confused about both the documents, know your legal rights and also understand which document is important and necessary for different purposes.
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