Introduction:
Securing an Occupancy Certificate (OC) is a pivotal step in the completion of a building, signifying compliance with civic regulations and adherence to approved plans. In a recent ruling, the Bombay High Court emphasized the holistic nature of OCs, dismissing the notion of individual floor-wise certificates. This blog delves into the significance of OCs, exploring a specific case and shedding light on the broader landscape of real estate certifications.
The Case:
The Bombay High Court’s decision stemmed from a contempt petition filed by Najma Aslam Merchant against Darvesh Properties. The dispute revolved around the alleged violation of an earlier court order related to the redevelopment of Quettawala Residency. The court quashed the OC obtained by the developer for specific apartments, emphasizing that an OC applies to the entire building, not individual units.
Settlement Terms:
As part of the settlement between the parties, the developer was obligated to pay transit rent for tenants temporarily displaced during the redevelopment. The agreement outlined a deadline for obtaining the OC, and failure to meet it would result in monthly payments until compliance. Despite fulfilling the rent obligation, the developer obtained the OC solely for the petitioner’s flats, not for the entire building.
Importance of OC:
An Occupancy Certificate serves as a final approval for builders before residents can legally occupy newly-constructed flats. It is essential for registering housing units in the names of homeowners and ensuring compliance with local regulations and approved designs. The absence of an OC can lead to delays in property sales and poses hurdles in the transfer of ownership.
OC vs. CC:
Distinguishing between an OC and a Completion Certificate (CC) is crucial. While a CC certifies construction adherence to sanctioned plans, an OC confirms a building’s compliance with sanctioned plans and its suitability for habitation. Homebuyers often confuse these two certificates, leading to potential misunderstandings in real estate transactions.
Industry Trends:
Despite their importance, developers often delay obtaining OCs and CCs due to associated costs. In regions like Noida and Gurugram, homeowners face challenges in obtaining possession or utility connections due to the absence of OCs. A significant percentage of real estate projects in Mumbai and Delhi lack these certificates, raising concerns about safety and security.
Other Certifications:
Apart from OCs and CCs, builders need to secure various other certifications, including No Objection Certificates (NOCs) from authorities like the Pollution Control Board, railways, and defense authorities. These certifications play a vital role in ensuring the overall safety and legitimacy of a property.
Conclusion:
The Bombay High Court’s recent ruling reinforces the integral nature of Occupancy Certificates in real estate. Homebuyers are advised to meticulously verify these certifications, acknowledging their role in safeguarding property transactions and ensuring compliance with regulatory standards. As the real estate landscape evolves, staying informed about certification requirements becomes paramount for both developers and buyers alike.
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