The occupancy certificate is one of the most important documents relating to properties. It is legally mandatory to obtain the certificate issued as occupancy without without which it is illegal and the buyer of the property can be asked to evict the property. The occupancy certificate is a document that shows that the construction works in the property has been carried out following the local law.

An inspection is also carried out on the property to ensure the same and the builder or developer is responsible to get the certificate issued. Financial institutions also require the certificate for providing loans to the buyer.

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What happens if there is no certificate of occupancy?

Since the occupancy certificate is not a requirement while registering the property, most of the buyers do not enquire or collect the certificate from the seller of the property. Some of the builders sell the property by providing a fit-out letter. The law clearly states that the possession of the property can only be legally transferred after obtaining the occupancy certificate and the possession certificate. An example to illustrate the importance of the occupancy certificate is the building complex in Worli which was declared as an unauthorized structure and the buyers of the property were asked to evacuate the property for demolition purposes.

Thus the buyer of the property must occupy the property only after obtaining and cross-checking the occupancy certificate to avoid any repercussions in the future. The buyer of the property may face many problems such as the inability to get connections for key facilities such as electricity and water. The buyer may also face problems as the building may be declared as unauthorized and demolished in the absence of the certificate.

Financial institutions and banks also require the certificate for granting home loans as the certificate acts as an authorization that the person has the right to keep the property as security.  You may also require a certificate at the time of the sale of the property as the buyer of the property may demand the certificate.

What do you need for an occupancy certificate?

The builder of the property is required to apply for the occupancy certificate after the construction works are completed or on the part completion of the project. You may be required to submit the following documents for the same:

  • Commencement certificate
  • Completion certificate
  • Sanctioned building plan
  • No objection letter or clearance certificate for fire and pollution
  • The area calculation sheet is duly attested and authorized by an architect.
  • The tax receipt of the latest payment along with tax assessment.
  • Photographs of the completed building, rainwater harvest and solar panel (if applicable)

After the submission of the form and the necessary documents, the authorities verify these documents and inspect the property before the approval of the application and issuing the certificate. The builder of the property is required to apply for the certificate within 30 days of completion. As the owner of the property, you may also apply for the certificate with the municipality. You may also be asked to submit the same documents as the builder for the process as well.

Do builders have to show OC to get a water connection?

The occupancy certificate is proof that the building is ready for occupancy. The inspection is carried out by the authorities after the application is made with the local authorities or municipal authorities. As already stated above, the occupancy certificate is an important document as without the same the property can be declared as unauthorized and demolished. The certificate is also necessary for availing the facilities such as water, electricity, and sanitation connections from the local municipal body.

However, from 2017, the Bangalore Water Supply and Sewerage Board (BWSSB) has decided to relax this rule and to supply water to those without the occupancy certificate as well. However, there is a penalty that has been imposed on such water connections and the amount may be equivalent to 50% of the water bill in cases of houses and 100% in case of commercial buildings.

Can Builders issue a Partial Occupancy Certificate?

The direct answer to this question is yes. The developer of the project can apply for the partial occupancy certificate after the completion of a part of the project. This type of occupancy is found mainly in large scale projects. However, the builder or the developer must apply for the occupancy certificate after the completion of the project. The banks are often reluctant to provide loans on projects that have a partial occupancy certificate issued. The partial certificate is valid only up to the completion of the project. After the completion of the same, the builder has to apply for the occupancy certificate within 30 days of completion.

It is also mandated that the builder completes the construction process within 7 years of issuance of the partial occupancy certificate. Just because you have already been issued the partial occupancy certificate, it is no guarantee that you will get the occupancy certificate. For that, your property will be re-inspected and crosschecked to ensure that the construction works are carried by the construction laws. You may also apply for utilities such as water, electricity, sewage, etc. with the partial occupancy certificate. Documents such as Khata Certificate, etc. will not be issued.


Summing up, it is to be stated that the occupancy certificate is an important document as the property without the certificate is termed as an unauthorized structure and can be demolished. It has been evidenced above with the help of the Worli incident whereby the people were forced to evacuate the property due to the absence of an occupancy certificate. The occupancy certificate is also a requisite of the loan application and also for availing key amenities such as electricity, water, etc. However, a contrary relaxation has been made by the Bangalore Water Supply and Sewerage Board (BWSSB) by granting water facilities to those without the certificates as well.