Importance of Occupancy Certificate and Possession Letter for Homebuyers
Importance of Occupancy Certificate and Possession Letter for Homebuyers

A few days back, I was reading a piece of news in an esteemed newspaper and the news was about a fraud that a couple has to face in Mumbai. This couple purchased a 2-BHK flat by investing everything that they have saved in their entire life. But, as soon as they moved into their new home, they were denied basic civic amenities, which came as a shock for them. When contacted, civic authority replied that they haven’t got occupancy certificate from the builder and thus, the couple left stranded in the middle of nowhere.

Purchasing a home is one of the biggest dreams that anyone, who has spent his/her whole life in a middle-class family aspire of. Even a slightest of negligence by the builder can shatter a life-long dream for many. Therefore, this post is aimed to inform all our readers the importance of occupancy certificate and possession letter for homebuyers.

Possession Letter

The possession letter is issued by the developer after he gets completion certificate from the designated authority. The letter is furnished on the name of the buyer with prospective completion date mentioned on it. A possession letter does not make you the legal owner of the property. For that, you need to get occupancy certificate, which not only gives you the rights of the unit but also the civic amenities offered in the complex. The possession letter also bears the time period before which the owner has to take physical possession of the property and has to make the final payment.

Conditional Possession

Sometimes, even when the homebuyers are not satisfied, they are bound to take the building possession. The reason can be poor construction quality, faulty construction, using different material, pending repairs and delay in offering completion certificate, which ultimately makes a homebuyer unhappy. In such conditions, you can accept a conditional possession of the flat and write your feedback for the same on builder’s copy. You can mention all the reasons because of which you are taking this step. Also, ask the builder to either make all the changes as per the agreement or else you will raise the issue in the court.

Occupancy Certificate (OC)

Occupancy Certificate a kind of fitness certificate that can be used as a proof that the construction of the building is done after following all rules and norms and it is in habitable condition. Every homebuyer should ask for the occupancy certificate before moving to their new space. After completing the building construction successfully, the builder needs to get his construction inspected and collect certificate from the zonal planning authority. A builder who has failed to get OC is an alarm that he hasn’t met with the construction guidelines as stated in the approval letter.

Possession Letter Without Occupancy Certificate

Even if the building is already installed with all the connections, it is your duty to ask the builder to provide you occupancy certificate. Without a proper OC, there is a chance that municipality authority can discontinue your connections anytime if they find any discrepancy in the building construction process. If your builder is trying to offer you ownership without a valid occupancy certificate, then you can refuse to take the possession. In any such condition, you are free to move to consumer forum or can also file an RTI inquiry to check if the builder has applied for the OC or not.

If you don’t want to get duped by your builder, then it is your duty to ask all the property-related documents. Don’t listen to any of excuses to fool you. And yes, the doors of consumer forum are always open to listen to your agony.


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