Occupancy certificate and completion certificate: why you should ask for them

This is general information, not legal advice. What these certificates are called, who issues them and how they are combined differs by state and city. Confirm with the local authority and a lawyer.

A new building passes through three official stages. Each one produces a paper, and each paper answers a different question. When you buy a ready-to-move flat or house, the last one matters most.

The three certificates

• Commencement certificate: the local authority's permission to start building under the sanctioned plan.
• Completion certificate: confirms that the building was built according to the sanctioned plan.
• Occupancy certificate: confirms the building is fit to be lived in, meaning it follows the plan and meets safety and service requirements such as fire safety and water and drainage.

In some places the completion and occupancy certificates are issued together or under one name. What you want to see is the authority's written confirmation that the finished building can legally be occupied.

Why a building with an occupancy certificate is more credible

• It is proof that the authority has inspected the building and found it matches the approved plan.
• Permanent water and electricity connections usually depend on it, and a builder can be asked for it by the society.
• Banks often ask for it before lending on a ready home, and it makes later resale easier.
• Without it you can face penalties, notices or refused services, and the risk can fall on the owners.

What to ask for

1. A copy of the occupancy certificate and the completion certificate, and the sanctioned plan they refer to.
2. Check the address, the tower or wing and the number of floors on the certificate against the one you are buying in. Some projects get partial certificates.
3. Ask whether the building has any deviations from the plan, and how they were handled.
4. Ask for the fire and lift clearances where they apply.
5. For a resale, ask the seller for the original certificate from the builder.

Under-construction and older buildings

An under-construction project will not have an occupancy certificate yet, which is normal. Check its approvals and its RERA registration instead, and insist that the agreement says the builder must hand over with the certificate. Some older buildings were built before today's rules or never got one, so ask the local authority and a lawyer how that affects the property.

Our flat viewing checklist covers what to inspect in person, and the documents checklist lists every paper to ask for. Bhavano does not verify certificates; see Trust and Safety. Browse apartments for sale.