The Significance of Completion Certificate in Real Estate

Let's admit that buying or selling a property is a tricky business. Anytime we are buying or selling a property or a piece of land, it is essential to be mindful of the required documents to facilitate the whole process. A completion certificate is one such vital document that needs to be taken into consideration. Apart from Title deed, payment receipts, encumbrance certificate, completion, and occupation certificate are also required, and it's quite an important one. Let's learn about why one needs the completion certificate and how significant it is.

  • Understanding Completion certificate

Suppose you're commencing any real estate Project such building apartments or a house and beginning any other construction specific project. In that case, one needs to apply for or obtain the completion certificate from the concerned department or authorities. One is supposed to give away all the details such as proper structure plan, building layout, number of buildings or apartments to be constructed, etc. If the plan submitted is verified, then a builder can obtain their builder's completion certificate. 

Once the plan is taken in cognizance and gets approved, the construction will occur according to the approved list. Any disturbance or discrepancy may lead to the cancellation of the approval and other legal complications against the builder.

Once authorities have been ensured that the construction is being laid out as per the approved plan, they issue a completion certificate to the builder.

It's a stamp issued by the authorities that the construction is being carried out while keeping in mind all the rules and regulations of real estate, and there's no malpractice involved in this construction. This certificate also includes the height of the building, the materials used, etc. 

Once the building is completed and ready to be occupied, an Occupancy Certificate (OC) is issued. This certificate certifies that the said building is fit for occupational purposes and has been constructed as per the local laws and the plan that was presented to the authorities and approved by them. 

  • A critical difference between Completion and Occupancy certificate

The authorities issue a completion certificate to a housing project to demonstrate that it has all the requirements in line as per the real estate norms to be habitable and deemed fit for possession. On the other hand, the authorities generally issued an Occupancy Certificate to demonstrate that the project has been built. Now, the builder can apply for utilities such as water supply and electricity. Such utilities can only be availed after a project has obtained its OC (Occupancy certificate).

  • Importance of Completion certificate 

  • Without obtaining this certificate from concerned authorities, it's not possible to avail water and electricity connection for that building or residential apartment
  • More than anything, it ensures a sense of security and certainty that the construction has been facilitated as per the plans and norms
  • To claim income tax benefits, this certificate or Occupancy certificate is required
  • Any evictions, legal complications, or even demolition by Municipal authorities can be avoided if you have a Completion certificate for that construction
  • It's a significant requirement to be fulfilled even while selling your property since you have to render an Occupancy Certificate to the resident; otherwise, their stay would be deemed illegal
  • It ensures a safe and peaceful stay in the longer run, and you're sure that the construction has been carried out as per the norms 

How to obtain a completion certificate

Well, now you know already why obtaining a completion certificate is helpful and beneficial. But, there are specific requirements and documentation that are needed to be done to get the Completion Certificate. 

  • A duly filled application form 
  • Building completion certificate issued by a licensed architect and engineer
  • Structural Engineer's letter
  • Property tax department receipts and NOC 
  • Completion affidavit from the developer/owner
  • NOC from the state pollution control board, fire department, elevator operation if required 
  • Part Completion affidavit
  • Solar system installation documents
  • Sewage treatment (STP) NOC if required

By submitting all these documents, a developer can avail Completion Certificate to avoid any unwanted/unnecessary hassles or legal issues later.