Godrej Splendour / Importance of OC certification for real estate investments
Property buying is one of the safest ways of investing as the risk factors are comparatively less in such kinds of investments. People for decades have been trusting this financial instrument as the number of returns is quite good. Real estate investments bring an emotional touch added to them which makes the investment worthy enough. As every financial instrument has its loopholes, one can also find loopholes in the real estate sector. The major loophole is misleading advertisements and fraud faced by the buyers. One should have a legal advisor if the capital invested in such sectors is high. The government has introduced many laws to control such types of malpractices. OC or Occupancy Certificate is one such document issued by the government which certifies a building with an occupancy certificate. OC has become a vital document for the developer as it is necessary for all types of real estate transactions. Whether it is reselling or buying, the OC certificate is the main component of the whole process.
The developer is the one who has to acquire OC from suitable government institutes like the Municipal Corporation or development authority of that particular area or the city. The certificate is the standard created which has to be cleared by every upcoming project. The ongoing projects which are near to possession stage also must clear all the legal documents before letting people invest in those projects. The government has taken a serious concern about the frauds made by the third-party individual which is distorting the trust of the buyers. The OC is guaranteed to only those real estate companies which fit into all types of norms and building plans created by the government standards. The process of guaranteeing an OC starts with inspection by higher authorities.
Many experts suggest that the OC document is one of the most vital documents as it ensures buyers with basic amenities which are guaranteed by the developer like proper drainage system, electricity, water, and more. Builders tend to have an OC way before the completion as without OC the builders are not allowed to give flats possession to the buyers.
The buyer should consider all legal factors as OC sees it as one of the most important certificates of livability status. The buyer should get the OC from the developer as it is a must before possession. This kind of certificate preserves the ownership flights on the desired apartment chosen by the buyer.
The government has imposed strict rules and guidelines when it comes to obtaining OC for the property. If anyone tries to break the rules certain actions are taken by the government. The building may be declared illegal if proper documentation is not submitted by the developer. The government has a right to demolish the property and can also seek eviction from authorities. Along with the developers, the buyers may also get affected as the government has the right to cut off water and electricity supply anytime without any intimation if the property doesn’t have OC with valid authentication. This kind of property cannot be resold nor are applicable to avail loan on it therefore right kind of OC certification is compulsory for any developer.
OC is subjected to only those developers who have a copy of the building sanction plan, building commencement certificate, copy of building completion certificate, latest property tax receipt, and copies of NOC from the airport authority & pollution board. The documents with the application should be submitted within 30 days after completion of the project. The developer should note that all the documentations which are needed in this possess should be managed prior to the submission date. The projects which have deviations in the design or structure are not eligible for an occupancy certificate. If the builder refuses to give OC in any situation then the buyer has the complete right to file a complaint against the developer. The consumer forum actively participates in such cases and issues notice against the developer. The notice sent by the consumer forum appeals to the developer to hand over OC within a month within one month. If the developer fails to provide OC to the buyer then certain allegations are imposed on the developer.
The implementation of the RERA act serves as one of the revolutionary decisions of the government as it has clarified all the ambiguity too. All the ongoing projects which did not receive OC were taken into consideration and the doubts regarding the loopholes in the system were clarified with effective solutions. The RERA norms are actively followed by the whole nation and the penalties imposed on misleading real estate companies are appreciably high. Uttar Pradesh and Haryana are two expectations when we take RERA norms into consideration as these states have diluted the rules set by the government.
Multi-phase projects can acquire OC for each completion of the phase and offer homes to buyers as the RERA allows this kind of flexibility for the huge township projects. The flexibility offered by RERA is convenient as the projects which are aimed to be expanding in every phase require huge capital which is often taken from the prebooked money received on possession of flats. The developer can utilise both money and time by applying OC for each phase and availing of completed apartments for sale.
Getting an OC certificate comes with responsibility as the developer has to ensure the timely completion of the project with all the specifications and amenities mentioned within the project brochure. The developer has to provide all related information about the project as the whole process of the project must be taken into consideration. Different phases of the project and the overview of the project must be examined by the buyer to verify the project. Many prop-tech websites are playing important role in such kinds of features as they provide an overview of the project which is built from a buyer-centric approach.
The developer can also avail of partial OC which has become a more popular way of adopting an OC. This kind of system is for mixed-use development projects as the builder can simplify the process of legal documentation by handing over possession with a partial OC for that specific project. In such kind of partial OC system developer hand over OCs to residential apartments first and in the next phase to all retail shop owners.
Many reputed brands make sure they clear off all the necessary legal procedures as these companies hire a legal advisor for the same. The legal advisor gets all the related information according to the size of the project planned by the developer and makes sure all the needed documents are ready on time. These kinds of provisions created by reputed real estate companies shorten the process. Nowadays people are getting smarter and always check for the necessary documents which are provided by the developer as this kind of document makes the process of reselling very convenient. One should always go for a reputed company for real estate investments as procedures like OC are cleared by them from possession of the flats. This kind of initiative led by the government has reduced many scam cases and has given relief to all real estate active investors too.