Why is it essential to obtain an OC certificate for building?

You have bought your dream home. After the construction of the house is complete, you will complete the registration of the property and finally take possession of the flat. Imagine if your dream home is declared unauthorized, and you are told to vacate the house by the authorities? No doubt it is a nightmare situation. However, it can be a reality if there is no OC certificate for the building.  Many apartments in India have been occupied by the owners without obtaining the occupancy certificate.

oc certificate

It is absolutely necessary to obtain an OC certificate for the building. An Occupancy Certificate is a document that is issued by the local authorities that will certify that the property is built according to the approved plan and adheres to the building code. All the basic amenities and the necessary clearances are in place. An OC is issued by a certifying authority like the municipal corporations. The builder has to get the OC from the concerned authorities and make it available to the homebuyers.

The CC certificate for a building, on the other hand, will certify that the property is built adhering to all the prevalent rules and regulations and there are no violations. It is mandatory to show this document to the authorities to obtain the electricity and water connection for the building. Local authorities will issue the Completion Certificate only after a proper inspection of the entire site. If there has been no violation of the rules, the authority will then issue a Completion Certificate.  The homebuyers should be aware of whether the property has been given a Completion Certificate. In case there is no CC certificate for a building, the civic authorities can put penalties on the developer, and even stall or cancel the project. If the building is occupied without a CC, the residents may also be asked to leave the premises in some extreme cases.

If the buyers do not obtain the OC, then the following can be the repercussions-

• If there is no valid OC, the building can be demolished as it can be declared as an unauthorised structure.

• The OC is essential also while applying for a home loan or taking a loan to purchase a resale flat. 

• The water supply, sanitary connection, or electricity supply can be disconnected in the absence of an OC.

  • OC may be required along with the home loan statement to avail the tax benefits on the home loan.
  • Local authorities can even ask the homeowners to vacate the property anytime in extreme cases as occupying a property without an OC is not legal.

What is the difference between the OC and CC of a building? 

An Occupancy Certificate (OC) will examine and certify that a property is in adherence to all the bylaws, that are required for electricity, water, and other clearances. On the other hand, a Completion Certificate is a document that will certify that a property is fit for occupancy by the homebuyers.  The Completion Certificate (CC) is a kind of reassurance that the building has been constructed as per the building bylaws. An Occupation Certificate is required because it will certify that there is no violation of building construction norms, and therefore, people can move into the building.  

Also Read: Is Your Building Healthy


The buyers must be careful in understanding their rights towards owning a property. Documents like OC certificates for the building are essential and ensure the security of your investment. Obtaining the CC and OC for the building should be made compulsory for the registration of flats and other essential services.