corporate law
When purchasing residential or commercial properties, you may encounter terms like "building without OC" or "building with OC." Knowing what an Occupancy Certificate (OC) is, when it is issued, and the implications of not having one can greatly influence your property decisions.
An OC, or Occupancy Certificate, is an official document issued by municipal authorities that allows for the occupation of a building, confirming that it meets essential civic infrastructure standards such as water supply, sanitation, and electricity.
Once construction is finalized, the developer or promoter submits a request to the municipal authorities for a Building Completion Certificate (BCC) and an Occupancy Certificate. The municipal authorities conduct a verification process to ensure that the construction complies with the approved plans and applicable regulations. Upon confirming compliance, they issue both the Building Completion Certificate and the Occupancy Certificate.
Developers or promoters may request a Part Building Completion Certificate, followed by a Part OC, for sections of a building completed prior to the overall completion. For instance, in a 30-floor building where 20 floors are completed, the developer might apply for a Part OC for those 20 floors. This allows occupants to move into these completed floors without waiting for the completion of the entire building.
An Occupancy Certificate is crucial for any development or redevelopment project. When applying for permission, developers must outline their plans regarding hygiene, sanitation, drainage, and compliance with fire safety regulations. Following construction, municipal authorities thoroughly review the project to ensure it adheres to the approved plan and public health requirements. The issuance of an OC indicates that the building is suitable for human occupation, and that necessary infrastructure is in place to safeguard the health and safety of its occupants, with no foreseeable risks.
It is a legal obligation for developers to refrain from handing over possession of properties to buyers until they have secured an OC. If they fail to comply, they may face penalties imposed by the authorities. For buyers, residing in a building without an OC could lead to potential eviction by municipal authorities. Moreover, living in such a building presents risks to occupant safety, as the absence of an OC suggests that certain legal requirements remain unresolved. Subsequently, access to essential services like electricity and water may be limited, forcing occupants to either pay significantly higher fees or find alternative arrangements for these utilities.
By understanding the importance of an Occupancy Certificate, you can make more informed choices in your property transactions, ensuring both compliance and safety.