The partial occupancy certificate is issued in cases of large projects, on the completion of a part of the same. After the partial completion of the project, the local authorities such as the respective state development authority inspects the property to ensure that the construction works have been carried out following the approved plan and issues a partial occupancy certificate. The partial occupancy certificate also declares that the completed part of the project is ready for possession and occupancy.

The partial occupancy certificate is issued based on the Building by-laws and it is made valid until the occupancy certificate is issued after the construction process has been completed. For example, section 5.7 of the Bangalore Building By-laws 2003, states that the building is open for occupancy legally only after the issuance of the occupancy certificate by the authorized authority.

The section also states that the occupancy certificate is granted after the completion of the part completion of the project. An inspection is to be made to ensure that the completed part of the project is following the sanctioned plan and that project is ready for occupancy.

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Can you close on a house without a certificate of occupancy?

It is to be noted that the occupancy certificate is an important document and the buyer will not be able to close the purchase of property without acquiring the occupancy certificate. Without the issuance of a valid occupancy certificate, the constructions are treated as unauthorized structures and it is to the occupancy of the same that is illegal in India.

Occupying the property without an occupancy certificate can lead to the eviction of the buyer from the property. An occupancy certificate is also an important document for the resale properties as it is a requisite for acquiring a loan from any financial institution. You may also not be able to carry out the sales process successfully without the occupancy certificate. The buyer may also need the occupancy certificate for availing vital amenities such as water, sewage connection, electric supply, etc.

Who pays for the certificate of occupancy?

The builders are responsible to apply for the occupancy certificate within thirty days of the completion of the project. The civic authority inspects the issuance of the certificate of completion. A deviation up to 5% from the originally approved plan is permitted however, the builder is made liable to pay an amount as a penalty for the deviation so made.

The builder has to provide the clearance from the fire department, clearance for the waste management and compost facilities, clearance after showing the proper rainwater harvesting techniques, electrical authorities clearance after the inspection to check if it is safe, etc. the inspection is also made to ensure that the clearance has been obtained from the airport authorizes (if the property falls within the range of the airport) and that the car parking facilities are provided only in the basement or on the ground floor.

The builder of the property is the one that usually makes the payment for the occupancy certificate as well as for the inspection carried out by the local authorities before the issuance of the occupancy certificate.

Do certificates of occupancy expire?

The occupancy certificate is the final approval certificate of a project. It is important to get an occupancy certificate because, in the absence of the same, the buyer may face difficulties as it is treated as illegal. You may also be required to obtain a commencement certificate before the construction works in the property begins. The occupancy certificate is issued by the authorized local government and the builder is generally responsible to provide the occupancy certificate.

In India, as stated above, partial occupancy certificates are issued. They are issued once a part of the project is complete and the property is ready for occupancy. The supervision activities and the certificate is issued if the construction works are carried following the approved plan. The partial occupancy certificate expires on the completion of the project and once the occupancy certificate is issued.

The occupancy certificate issued after the completion of the project does not have an expiry date. The builder may make an application under the Real Estate (Regulation and Development) Act, 2016 with the municipal authority.

Why do you need a partial occupancy certificate?

The importance of the partial occupancy certificate cannot be overstated as it seals the legal status of your property and protects your ownership rights. An OC certifies that the construction of the building has compiled with approved plans.

Importance of Partial Occupancy Certificate for a home loan

The partial occupancy certificate acts as proof of ownership of the property. It is an important document that needs to be presented at the time of availing a bank loan. However, the degree of importance varies from one type of property to another. In case of the property being an under-construction property, the buyer may apply for a bank loan without providing the partial occupancy certificate.

In cases of property that are newly constructed, the builder of the property is provided 12-18 months to obtain the occupancy certificate. The property is considered as an under-construction property by banks during this phase and the loan is provided without the occupancy certificate. At this stage, the banks consider the status of your application for the occupancy certificate.

In other cases, the partial occupancy certificate is treated as mandatory as it acts as proof that the borrower is the rightful owner of the property and that he can keep the property as a security for the loan. However, here are some pointers that can be followed in the absence of the occupancy certificate:

  • Receipt of property tax, and completion certificate; can be submitted to avail the bank loan.
  • An appropriate reason by the builder for not having an OC may also be accepted by the bank for providing the bank loan.
  • You may also provide the approved building or structure plan of the property for availing the bank loan.
  • An audit report may also be submitted for acquiring a bank loan about the fact that the structure is complete without any adverse findings.


Summing up, it is to be stated that the occupancy certificate is an important document that may not be required at the time of registration of the property but is necessary for occupying the property. The occupancy certificate is given this vital importance; it ensures that the property is constructed by following the construction laws and guidelines issued by the government. Before the issuance of the occupancy certificate, an inspection is carried out to ensure that the building is safe for occupancy and that there is no deviation from the original plan.

All the expenses are borne by the builder in new properties and by sellers in case of resale properties. The occupancy certificate is also issued in case a part of the project is completed. Such an occupancy certificate is called a partial occupancy certificate and expires when the complete construction works are completed. The Occupancy certificate not only validates your occupancy but also requisite for selling and financing your property.