Difference between possession letter and occupancy certificate

Occupancy Certificate, nrihelpinfo

Many homebuyers, particularly first-time homebuyers are not aware regarding occupancy certificate (OC) and usually mistake it to be the same as the possession letter. There are various documents which are needed during the time of purchase of a property in India and obtaining them could prove to be a tedious task. But OC is a basic document which must be sought and home buyers have the right to take legal action against property developer if the same is not given to them.

Possession Letter

The possession letter is issued by the real estate developer in favour of the buyer declaring the date of possession of the property. The original copy of this document requires to be produced for securing a home loan in India. A possession letter alone would not be sufficient for legal possession of the land and property unless the OC has been obtained.

Occupancy or Completion Certificate

Occupancy Certificate or Completion Certificate is a document which is issued at the end of the construction of a building by a local government agency or planning authority. The document is proof of the building’s compliance with suitable building codes and other laws. It means that the property is in a suitable condition for occupancy. The property developer is responsible for obtaining OC and is issued solely once the building has been completed in all respects and also ready to be occupied. A completion certificate is collected by the builder from the metropolitan authorities upon the completion of construction.

OC is necessary while seeking loans from banks and other financial institutions or while applying for water, sanitation as well as electricity connection. Legally, a homebuyer cannot move or shift into the property without the document. The certificate is also essential in scenarios when a buyer applies for Khata or when purchasing a resale flat. The sale of the apartment/flat would not fetch a good price without an occupancy certificate.

To obtain the Occupancy Certificate (OC), the following documents require to be submitted:

  • The latest Property Tax receipt
  • Copy of building sanction plan
  • Building Commencement Certificate
  • Copy of Building Completion Certificate
  • Copies of No Objection Certificates (NOCs) from the pollution board or Airport Authority

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Difference between possession letter and occupancy certificate

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