What is Occupancy Certificate,CC and IOD? Real Estate Terminology Part 2 [Approvals]

Dec 17 2018

In the second of this six part series, we cover real estate terms related to important approvals for properties like occupancy certificate, etc. The first part covered terminology related to area of the property including carpet area, built-up area, etc.


Intimation of Disapproval (IOD)

IOD is an essential permission given to the developer by the municipal authorities.

After development plans are submitted to the Building Proposal Department of BMC, an IOD is issued, and under the terms and conditions of the IOD, the developer is asked to comply with many requirements and obtain various clearances like clearance from Environment Authorities, Tree Authorities, Fire Officer etc. After these clearances are obtained, the developer is entitled to obtain a Commencement Certificate (CC).

Commencement Certificate (CC)

A certificate issued by the appropriate local authority certifying the construction may commence. Typically, this is done after the concerned party has obtained sanction of plans for the construction of a multi-storied building.

Commencement Certificate (CC) is given in two stages:

  1. CC upto plinth level
  2. CC beyond plinth level

Usually CC is extended from time to time.

Occupancy Certificate (OC)

Once the construction of the building is done as per the plans which were submitted and approved by the authorities, legal possession of that house or commercial space can be taken only after Occupancy Certificate is received.

OC is a certificate issued by the local municipal authority certifying that all necessary works have been completed as per the sanctioned plans and that the property is fit for occupation. The OC is issued after clearance from the water, electricity, sewerage, fire fighting authorities etc.

Occupancy Certificate is not a good-to-have certificate, but a mandatory one. Till the developer of the residential or commercial property does not obtain Occupation certificate from the civic bodies, it is illegal for buyers to move into that property and commence any activity.

In fact, a very popular case in Mumbai was all over the news for the same reason. Campa Cola Compound in Worli in Mumbai did not have OC for its residential towers. In spite of being aware of this incomplete documentation, residents bought the apartments on the understanding that they would get Occupancy Certificates later and they started living there. After around 25 years, Supreme Court ordered residents of Campa Cola society to vacate their apartments in 2014. (Source: Wikipedia)

This is the second post of our real estate terminology series. Subscribe to our blog via email so you never miss a post from this series and other interesting property tips.

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List of important Documents for Buying a Resale Flat

Dec 15 2018

Have you identified the most important set of documents that you need to buy a resale flat in India?

Have you had trouble finding out from where to procure these documents and whether they are mandatory to proceed with the deal to purchase the resale property?


In this article, I’ll list out the legal documentation requirement that a home buyer must add to his or her priority checklist and also communicate to the selling party so that there are no delays in the transaction.

1. Chain of all sale deeds

  • Significance: To trace ownership of the property.This document evidences sale and transfer of ownership of property in favor of the buyer, from the seller. It acts as the main property document for further sale by the buyer as it establishes his proof of ownership on the property. It is normally executed after execution of sale agreement, confirming that terms and conditions detailed in the sale agreement as agreed upon between the buyer and the seller are complied.
  • Mandatory
  • It is registered in Sub Registrar office in whose jurisdiction property is located and register it within 4 months from the date of execution.

2. Share certificate

  • Significance: It indicates membership of the current original owner in the society. Subsequent transfers are endorsed on the back of the share certificate. As per co- operative laws, the ownership of flat is identified with share certificate. Its the membership of society which gives right of ownership and occupation of the flat. It is the most important document to signify the ownership when buying a resale flat in India.
  • Mandatory
  • It is issued by the society in favor of the current original owner. If lost, a procedure as laid down in the Co operative by laws has to be followed like indemnity, newspaper public notice etc.

3. Bank clearance letter in case property has any bank loan

  • Significance: If you have taken a loan against the property than all the original documents relating to the property are kept in custody with bank. While selling such property, clearance letter is required from bank which is issued with conditions that specified loan of the bank has to be cleared before the original documents are handed over to the new buyer.
  • Required, if you have taken a loan against the property you are selling.
  • This letter is obtained from bank. If lost, it can be re issued by bank.

4. NOC from society

  • Significance: To certify that the society has no objection to transferring the share certificate in favour of the potential purchaser is needed if applicable. Any sale without NOC from the society may not be acknowledged by the society and raise complications in transfer.
  • Mandatory
  • It is issued by the CHS.

5. Title report

  • Significance: To ensure that compete chain of earlier sales are properly registered and if any government lien is marked on property. It is a report, not a legal document.
  • Not mandatory. Important especially in large ticket size deals specially relating to land.
  • Tittle search is taken from Registrar’s office.

6. Occupation certificate

  • Significance: To certify that the building has complied with the approved plans. Once the building is complete, the builder has to obtain an Occupation Certificate or OC.
  • Desirable. Property without OC is vulnerable. The property is not officially recognized and termed illegal by local authorities.

7. Car park

  • Now, builders have stopped issuing separate allotment letter of car park as its not legal to sell car park. But it is important to take confirmation of car park.

8. Municipal approved floor plan

  • Significance: It is full plan copy (floor plan) of that building and the wing you planning the purchase. It gives an idea about surrounding and spacing.The property one is buying must match with the approved plan.
  • Desirable

Round-up: Remember, you don’t want to get stuck with a property for the rest of your life that doesn’t have clear title or any other missing legal document that prevents you or your children from reaping the benefits in the long run. Due diligence is required when buying a property, but instead of getting overwhelmed by a long list of paperwork create your document checklist or hire a property consultant to guide you for the same.

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