All about possession and occupancy certificates for apartments

The residential real estate market in Bangalore is depends greatly on apartment projects across the various locations of the city. Almost all builders and developers in Bangalore focus their activities on the growing demand for this type of housing unit. As more and more migrant population enter the city with the emergence of new multinational companies and businesses, there is an increasing need to supply apartment projects to meet the residential requirements of the employees and other residents. Apartments are sold like hot cakes in Bangalore. However, scams are also quite common in this field. Buyers are often tangled in legal or monetary hassles due to several factors. One of the major points that buyers need to be careful about while buying apartments in Bangalore is the acquiring of proper legal documents for purchase. Among the paperwork involved in buying apartments, possession and occupancy certificates are probably the most important ones. Let us examine what these documents mean and how they ensure ownership of property.

Possession certificate

Possession certificate is issued by the builder to the buyer stating the prospective date of possession of the apartment. This certificate promises that the property will be delivered to the buyer on the date mentioned in the document. Possession certificate is required when the property is purchased directly from the builder; that is, first purchase of the property. For instance, buyers who have booked apartments in Sarjapur in a new project will be given possession certificate by the builder with the expected completion date on which they can possess the property. Possession certificate is not reissued by the builder at the time of resale. However, the original possession certificate will be passed on to the next buyer from the first owner. Possession certificates from the builder are required for getting home loans.

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Occupancy certificate

Usually the inexperienced buyer gets confused between possession certificate and occupancy certificate. Many buyers are unaware of the fact that possession certificate does not ensure ownership of the property. Those flats in Sarjapur will not be owned by the buyers unless they get the occupancy certificate. The non-availability of occupancy certificate could lead to denial of civic amenities like water and electricity. An occupancy certificate is issued by the local authorities after the inspection of the project to ensure that the property conforms to the prevailing building codes and norms. The certificate is a proof of compliance and verification. Occupancy certificate ensures that the apartment is suitable for possession and living. The builder obtains this certificate from the authorities concerned after the project is completed. In some cases, when the builder fails in meeting the construction guidelines provided in the approval letter, they do not obtain occupancy certificate. If the buyer is ignorant about the importance or existence of this document, the builder may mislead them by providing only the possession certificate. If there is no occupancy certificate, buyers can refuse possession of the property and take legal actions against the builder. Occupancy certificate is mandatory for the rightful ownership of the property.