Bangalore Property: OC (Bangalore Occupancy Certificate) & CC : A complete guideline

Bangalore Occupancy Certificate: A complete guideline

 A buyer can move into his/her new apartment only once the occupancy certificate (OC) has been received. This occupancy certificate is generally obtained from the Bruhat Bangalore Mahanagara Palike (BBMP) and it is mandatory for every residential complex, which is larger than five units, to obtain the occupancy certificate. It is illegal to move into a flat or house without receiving the occupancy certificate.

The occupancy certificate is processed once the Palike gets information from the owner or the buyer highlighting that the construction has been completed. The builder needs to fill an occupancy certificate application form for the issue of the certificate. The builder will also need to submit a few other documents that are listed below

Please find attached a list of documents that are required for obtaining occupancy certificate

1.     Commencement certificate

2.     completion certificate

3.     built plan along with elevation,site and section plan

4.     NOC from fire force, KSPCB

5.     Area calculation sheet of floor signed by architect

6.     photographs of completed building

7.     tax assessment with tax paid receipt

8.     photographs of rain water harvesting and solar panels

9.     sanctioned plan copy

The BBMP authorities will inspect the complex and confirm whether it has been completed according to the approved plan and then, issue the certificate. However, in case the deviations are up to five percent from the plan, then a fine will be charged based on the extent of deviation made. Once the fee is paid, the occupancy certificate will be issued. For more details on the fine, check below about “Occupancy certificate Bangalore deviation fines”.

“Are you trying to obtain occupancy certificate in Bangalore for an individual house? Note that there are some fines that are applicable if the house shifts from the pre-made plan. Here is an attached sheet which contains details about the fines for various deviations. However, note that deviations can be made only within 5% of the plan.
Occupancy certificate”

When do we get occupancy certificate?

Normally, the builder of the flat issues occupancy certificate once the construction is completed. Legally, every builder/owner should send an application to the commissioner for the OC within 30 days of completion of the building. The commissioner, in turn, informs the applicant within a 30 day period whether the application has been accepted or rejected. The buyer should definitely get the occupancy certificate before moving into the flat or signing the agreement. However, sometimes builders don’t obtain occupancy certificate from BBMP as once the OC is obtained, these builders would be required to pay property tax. The builder might not have sold all the flats in the complex. In such a situation, the builder is often reluctant to obtain occupancy certificate. If the builder has not constructed the complex based on the approved plan, then there is a chance that the builder might not be able to obtain occupancy certificate.

What are some of the conditions needed to be fulfilled to get the Occupancy certificate?

In order to get the occupancy certificate, clearances from the fire department has to be obtained. Some of the conditions to provide the occupancy certificate are listed below.
a. The car parking in the basement shall have enough safety measures. The car park is supposed to be built at the complete risk of the owner and BBMP does not take any liability for any loss, damage, risk, etc.

b. The owner/builder is not supposed to add/alter the structure in any way without permission from the BBMP. If the structure is changed in any way, BBMP has the right to damage or demolish the structure.

c. Basement floor and ground floor should be used for parking purposes only.

d. Footpath in front of the buildings should be maintained in good condition.

e. Rainwater harvesting should be implemented and maintained in good working condition for storage of water or for recharging ground water.

f. The security deposit made by the builder will be forfeited in case there is a deviation from the approved plan.

g. The owner shall segregate the waste and make appropriate arrangements to dispose the organic and inorganic waste. These arrangements should be made in consultation with BBMP Zonal Health office.

If any of the information provided by the builder/owner is false, then BBMP has the right to cancel the Occupancy certificate. 

Is Occupancy certificate important?

Generally, Occupancy certificate(OC) is needed by a purchaser when he/she is legally moving into a flat. It is illegal to move into a flat without the occupancy certificate. The owner of the flat can be forced to evict the flat in case he/she does not have occupancy certificate.
Occupancy certificate is also required when the buyer applies for Khata. However, note that the occupancy certificate is not needed for registration of the property during purchase. This often leads buyers to believe that the occupancy certificate is not important. However, when such a buyer tries to apply for Khata, he/she will face problems obtaining it. Note that this Khata will definitely be requires in case the owner plans to sell the flat sometime in future.

There is also a chance that the electricity and the water connection could be cut to the flat if the owner does not have the occupancy certificate.

OC is also needed when one plans to get loans to purchase a resale flat. In case of a new under construction flat, banks will provide loans when the flat is being constructed. As OC is not available during construction phase, OC need not be submitted. However, the bank might instead demand for CC (Commencement certificate). What is Commencement certificate?

"Commencement certificate (CC) is one of those documents that is little known about or discussed. Buyers generally are satisfied when they receive the occupation certificate. However, as more and more buyers buy properties that are under construction, knowing about commencement certificate become necessary.

Commencement certificate is a document that is issued by the local authority to the builder. The builder needs to submit an application and this document is provided to the builder, provided builder follows all stipulated rules and regulations that are stated by the local authorities. It is mandatory for a builder to possess this document before beginning construction of a property. After acquiring required approvals and sanctions, the builder can lay the foundation of the superstructure and build boundaries. The builder will then need to lay columns either in the basement or in the ground floor depending on the requirement. After completing this step, the builder can approach local authorities to avail this document. The town planning and engineering department provides this certificate after inspecting the property.

A question that is often asked is whether the commencement certificate is mandatory for all apartment complexes. The answer is yes. All buildings require commencement certificate. In case a builder does not receive commencement certificate before beginning construction, he will not be provided the occupancy certificate also. Any such building that does not have occupancy certificate cannot be occupied. Occupation of such buildings is considered unlawful. The owners can be asked to evict the flat by the authorities if they do not possess occupancy certificate. They might also be forced to pay some fine (for example in bangalore, this fine is around Rs 50 /- per square meter) for the whole complex. In case the builder does not get commencement certificate, and consequently occupancy certificatem, the owner will be forced to pay these fines.

Commencement certificate becomes utterly important when buyers buy apartments that are in pre-launch phase or under construction. In case you are buying such an apartment under construction, make sure that you demand to check the commencement certificate before signing any agreement. Often builders continue to build 1st and 2nd floors without getting CC as they are confident that they will be able to get it in future. This is illegal and can create problems in getting Occupancy certificate (OC) in future. To get a general idea about occupancy certificate, read "Bangalore Occupancy Certificate: A complete Guideline"

Another document that a buyer must check before he buys a property is the IOD(Intimation of disapproval). IOD/IOA lays down a set of rules or guidelines which act as conditions on which a building should be constructed. An IOD/IOA is valid for only a year. At the end of the year, inspections and re-validations are performed by local authorities."

Once the house is purchased, used and then resold at some later date, the new buyer shall demand OC. The new buyer might also intend to buy the flat on loan. In such circumstances, unless you have an OC for your flat, there is a high chance that the new prospective buyer might not be able to get a loan and consequently, be unable to buy the property. In such a case, you will need to search for someone who will be able to buy the flat without availing a loan which can sometimes be difficult and time intensive.

On a larger note, yes, it is always better to have the Occupancy certificate in order to ensure that the buyer is on the right side of the law. It also makes resale of flat an easier task.

What can buyers do to avoid getting cheated?

1.     Obtain commencement certificate and occupancy certificate. 

2.     Ask for copies of land registration, joint venture, Encumbrance certificate, tax paid receipts, etc.

3.     Check whether there are any pre-existing owners.

4.     Confirm whether the area is approved by BMMP,BDA or BMRDA