Important Facts Home Buyers Should Know About Possession Certificate

• @kw
• 30 Jul 2020

A home buyer should critically check certain facts whole buying a home as it is one of the major decision in one’s life. Completion certificate which is also commonly known as occupancy certificate is issued after final inspection to by the competent authority such as Municipal Corporation to check if the building has been built as per the approved sanctioned plan. The local municipal authority issues a clearance after checking each and every aspect of the building which includes outer and inner construction quality and sizes, drainage, water supply, electrical system, fire safety etc to certify it to be habitable as per the building rules of the Municipal authority in the manual. The completion certificate issued by Municipal authority or such govt.agency is a proof that the builder has not violated any norms mentioned under the building rules. It is mandatory for a builder to obtain completion certificate before giving habitable possession to a home buyer. The Municipal Corporation has the power to disconnect water supply, drainage line, and electric connections etc. at any time if discrepancies are found in absence of Occupancy Certificate. Many builders promise to provide Occupancy Certificate in due course of time by convincing buyers with assurances but in such cases the law will not consider the ignorance on part of the buyer. Action can be taken against both buyer and the seller. Many home buyers due to lack of knowledge think that since bank is financing for the project and also providing loan, the Bank Guarantee associated with the completion certificate . But this is not true because Bank finances a project after verifying the title of the property on which the building is going to be built and they provide finance in stages with the progress of construction work. They have no role in seeing the technical aspect of the construction.

Municipal Authority in some cases may issue a provisional completion certificate Under certain cases the Municipal Corporation may issue a provisional occupancy certificate provided if the work that are to be completed are minor in nature and must be completed within six months .A revised application for Inspection has to be given within a period of six months for getting final occupancy certificate.  However a buyer must know that if buyers move into a building without the developers receiving a completion certificate, the civil authority can order eviction and can impose penalties, too.

There are certain provisions in support of buyers. If there is delay in giving possession by the builder, the buyer has the right to claim damages such as interest for delayed period on investment or refund of money. RERA in different states has made the rules quite stringent in favor of home buyers against unscrupulous builders. However, it is always very important for a buyer to get the sale agreement verified and vetted by a qualified legal expert to avoid any unnecessary hassles while taking possession of the property.