Completion Certificate: Importance for Developers and Homebuyers

Thu, 11/24/2022 - 09:58

Author: JLL


Are you excited to move into your new house? But hey, did you consider checking with your builder to see whether they have obtained the required certificates? Yes, it is mandatory for developers to obtain a certificate that allows homebuyers to occupy their property. It makes you a legal resident of the property in a particular complex. Well, to find out what kind of certificates a developer needs to allow you to occupy your property, let us begin with the first and foremost, the completion certificate.

What is a Completion Certificate?

A completion certificate is a legal document that is essential for both developers and homebuyers. This certificate determines that the building or complex is constructed according to the Building Act 2005, following all the safety protocols with uncompromised construction quality. It is issued to the developer by local authorities after an evaluation and strict scrutiny of the building or complex. Without a completion certificate, no builder can make the utilities or basic amenities available on the premises. Therefore, a completion certificate is an essential document for validating the property.

How to get Completion Certificate for building?

A completion certificate for a building is obtained by the developer from the local authorities which validates the building as legal, approving its structure and design considering Floor Space Index and Floor Area Ratio. Your developer can also obtain the completion certificate online. This certificate contains all the information, right from the name of the developer to the project name, location, and height of the building to the quality of the construction materials used. It indicates that the construction plan is authorised and follows all building guidelines. Moreover, a completion certificate is mandatory to make an application for utility facilities like electricity and water supply, which makes CC the most essential document throughout the completion and occupancy processes.

Why should you obtain a Completion Certificate?

The completion certificate is a testament to the construction norms, uncompromised quality, and safety protocols. It is the certificate that validates your property and makes you the legal owner of it. Therefore, it is advisable to always obtain a completion certificate before moving to a new property. This ensures that you reap the benefits of not only the amenities but also of the taxes. Yes, with a completion certificate, you can claim your property tax at the end of the year. Further, if you wish to sell the property, this completion certificate will help you find a good buyer and sell your property at a good price.

Taking possession without a completion certificate is illegal, and you may face a penalty or even an eviction by the authorities. However, the authorities may allow you to move into your new house if more than half of the construction is completed and basic amenities are made available, with the possibility of completing the project shortly. In such a scenario, you need a provisional completion certificate that remains valid for 6 months.

What is a Provisional Completion Certificate?

The provisional completion certificate is a temporary certificate provided by the local authorities to the developer when the construction is anticipated to be completed shortly. This certificate indirectly authorises homebuyers to occupy the property even when the building or complex is under construction. The certificate is only valid for a limited period of six months, and the developer is supposed to complete the construction within six months to avoid legal proceedings against the project. Without a provisional completion certificate, moving into an under-construction property may bring health, financial, and legal risks.

How is a Completion Certificate different from an Occupancy Certificate?

The completion certificate certifies that the building is constructed as per the approved master plan with uncompromised quality. It further states that the building has been evaluated thoroughly and abides by the construction norms, which have already received the "No Objection Certificate" from the fire department. While the occupancy certificate is the second certificate that developers must obtain from the authorities. It certifies that the building has received all the required approvals from the authorities and is now ready for occupancy with all the required amenities on the premises. Without a completion certificate, a developer cannot obtain an occupancy certificate.

What if your developer does not provide you with a completion certificate?

Well, if the developer does not provide you with the completion certificate, you should put off your decision to move into your new home. Yes, you read it right! A "Completion Certificate" is a legal document that one must obtain from the developer before moving into the new house to avoid legal hassles. In case the developer does not provide a completion certificate, you can file a complaint with RERA in order to obtain the Completion Certificate.

To know more, you can also read the Homebuyer process and legal checklist to avoid future legal hassles.