Importance Of Possession Letter And Occupancy Certificate For Home buyers

Imagine, you purchased a house and then get denied for civic amenities. This is exactly what happened with Mr Arun and his wife when they shifted to their own home in Mumbai. Buying a house is a watershed moment in the lives of middle class people. Mr Arun and his wife who were too excited to shift to his new life was totally unaware of the problems awaiting them.
Why were they denied basic civic amenities ?
The builder did not provide them occupancy certificate and thus the couple left stranded in the middle of nowhere.
Even a slightest of negligence by the builder can shatter dreams of any family. This is not just the case with this couple. Many homeowners, mostly first time owners are not much aware about the documentation required. They usually just wish to get the possession and move into their new house.
But Possesion letter is not the only document. Several documents are required while you purchase a property and obtaining is a tedious process.
Occupany Certificate is a crucial document and one has the right to take legal action if the same is not been provided to them.
Therefore, this post is for all the readers to explain about the importance of Possession letter and Occupancy certificate.
POSSESSION LETTER
The builder issues a possession letter in favor of the buyer mentioning prospective completion date of the house. A possession letter alone does not make you the legal owner of the house, you also require Occupancy Certificate to get all legal right and enjoy amenities too. The original copy of this document needs to be produced for securing a home loan.
The possession letter also bears the time period before which the owner has to take physical possession of the property and has to make the final payment.
OCCUPANCY CERTIFICATE
Occupancy certificate, which is also known as completion certificate which serves as a proof of building’s completion as per the approved plan. The builder is responsible to obtain occupancy certficate    thats indicates that the property is in suitable condition to live. If a developer fails to get a OC it means that they haven’t meant met all the construction guidelines mentioned in the approval letter.
To ensure that you don’t face trouble like Arun faced, make sure that you ask for occupancy certificate. OC is not just important for civic amenities like water, sanitation, electricity, but you also require an OC certificate for home loan or when purchasing a re-sale flat.
The following documents need to be submitted to obtain occupancy certificate,
  • Copy of building sanction plan
  • copy of building completion certificate
  • Building Commencement Certificate
  • Copies of NOCs from pollution board or airport authority
  • Latest Property Tax receipt
Possession Letter Without Occupancy Certificate
Even if the building is ready with all the connection , you still need to ask for the OC because if you fail to provide OC there are chances that your connections can be disconnected. If your builder is not providing you with the same you have full legal rights to move to consumer forum or can also file an RTI inquiry to check if the builder has applied for it or no.
Conclusion:
When it comes to purchasing a property do not act in haste. Before taking handover, ensure you have all the required documents. It is your legal right to ask for every required information. Do not listen to any excuse and firmly ask for all the information and documents. Doors of consumer forum are always open to listen to you.
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