Definition
Occupancy Certificate
An occupancy certificate (OC) is a document issued by the local authority certifying that a building is complete as per approved plans and is safe and legal to occupy.
The OC confirms the project complied with building norms, fire safety, water and sanitation requirements, and the sanctioned plan. Without it, occupying a property is technically illegal, and utilities or future resale can be complicated; lenders and buyers increasingly insist on it. A completion certificate certifies construction is finished, while the OC permits occupation.
Buyers of a ready-to-move home should confirm the OC exists before registering, and buyers of an under-construction unit should ensure the builder is obliged to obtain it before handing over possession. The OC is also relevant to GST, which does not apply to a property sold after the OC is issued.
Related terms
- RERARERA, the Real Estate (Regulation and Development) Act, is the Indian law that regulates the property sector to protect home-buyers and bring transparency and accountability to builders.
- Ready-to-Move PropertyA ready-to-move (or ready-possession) property is a completed home you can occupy immediately after purchase, with no construction delay risk.
- PossessionPossession is the point at which a developer hands over a completed property to the buyer, who can then occupy or use it.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.