Facts Every Buyer Should Know About Possession Letter and Occupancy Certificate
Jun 20, 2017 Home Trading Steps
Many first time buyers are not aware of the occupancy certificate and occupancy certificate. They get confused and assume they both are same when in reality they are not. There are many certificates that a buyer is required to have while buying the property. Getting the required certificated can get tedious and difficult but not getting them may end you in hot waters later. An occupancy certificate is a necessary document that every buyer must get from the builder or the seller. If the builder or the seller is not ready to give you one, you are free to take a legal action against them.
We discuss the difference between the possession letter and occupancy certificate:
Possession letter:
The possession letter is issued by the developer to the buyer stating the date of the possession of the property. The original copy of the letter needs to be produced to the bank while securing the home loan. The possession letter alone does not suffice your ownership of the property. An occupancy certificate needs to be produced for the same.
Occupancy certificate:
The occupancy certificate is issued by the local government or planning authority after the construction of the property has been completed. The certificate is the proof that the building is in accordance with the government compliances and rules. It also indicates that the building is in suitable condition and ready to move in. it is developer’s responsibility to get the occupancy certificate from the government body.
Occupancy certificate is necessary when you are applying for a loan to the bank and also when you are applying for basic necessities like electricity, water supply from the municipal corporation. The certificate is also a necessary document when the buyer is applying for the Khata or when he is buying a re- sale property. The sale of the apartment will not fetch a good amount without the occupancy certificate.
To get the occupancy certificate from the local authority, following documents needs to be submitted:
A copy of sanctioned plan
A copy of building completion certificate
Building commencement certificate
Latest property tax receipt
Copies of no objection certificate (NOC) from the pollution board or the airport authority
There have been cases where the builder has not provided the buyer’s occupancy certificate and now the buyers are in trouble getting basic civic amenities. Law provides the buyers with an option to file a case against such developers in case the occupancy certificate in not provided.
Keep in mind the possession letter and occupancy certificate are different and you need both of them to get the loan from the banks and get access to the basic amenities.
We discuss the difference between the possession letter and occupancy certificate:
Possession letter:
The possession letter is issued by the developer to the buyer stating the date of the possession of the property. The original copy of the letter needs to be produced to the bank while securing the home loan. The possession letter alone does not suffice your ownership of the property. An occupancy certificate needs to be produced for the same.
Occupancy certificate:
The occupancy certificate is issued by the local government or planning authority after the construction of the property has been completed. The certificate is the proof that the building is in accordance with the government compliances and rules. It also indicates that the building is in suitable condition and ready to move in. it is developer’s responsibility to get the occupancy certificate from the government body.
Occupancy certificate is necessary when you are applying for a loan to the bank and also when you are applying for basic necessities like electricity, water supply from the municipal corporation. The certificate is also a necessary document when the buyer is applying for the Khata or when he is buying a re- sale property. The sale of the apartment will not fetch a good amount without the occupancy certificate.
To get the occupancy certificate from the local authority, following documents needs to be submitted:
A copy of sanctioned plan
A copy of building completion certificate
Building commencement certificate
Latest property tax receipt
Copies of no objection certificate (NOC) from the pollution board or the airport authority
There have been cases where the builder has not provided the buyer’s occupancy certificate and now the buyers are in trouble getting basic civic amenities. Law provides the buyers with an option to file a case against such developers in case the occupancy certificate in not provided.
Keep in mind the possession letter and occupancy certificate are different and you need both of them to get the loan from the banks and get access to the basic amenities.
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