The difference between Possession Letter and Occupancy Certificate!
Even though the title letter and the certificate of employment are two distinct papers, most first-time purchasers frequently mistake them for one another. Developers should seek out both papers, though. The purchaser must have the right to sue the organiser in the absence of a document. The title letter often states when the construction is complete or when the property is yours. It does not establish your ownership rights in a legal sense.
A certificate of fitness for use, on the other hand, demonstrates that the project is finished since the building is livable. Additionally, it identifies you as the property’s legitimate owner.
One of the most significant papers that the developer gives the customer when they purchase a property and which specifies the date of possession is the title deed. A list of assets can be obtained from an official representative in rural regions or through RDO in metropolitan areas (Revenue Divisional Officer). The letter also specifies the deadline for the buyer to submit the last payment. The loan must be guaranteed by the original of this document. However, without a CO, the PL is insufficient on its own.
The Project’s promoters request a certificate of completion from the local authorities once construction has been effectively finished (CC). The authorities next check to see if the building was constructed in line with the building permit design and complies with other building standards, including those pertaining to earthquake, building height, drainage, and rainwater collection systems. The municipal office gives a certificate of completion if the test is successful.
A civil authority must provide a certificate of use when the builder receives a certificate of completion. The main document given to the developer by the local authority or city council when construction is complete is the certificate of occupancy. demonstrates that the property is livable and that the building was built in line with the rules and legislation that apply.
A homebuyer who does not have an occupancy permit is not allowed by law to occupy the property; instead, they must settle their mortgage obligations with banks and other lenders and even apply for water and power connections. Liability insurance is also necessary when buying a resale property or in cases where a buyer asserts claims against Khata.
Real estate would not be affordable or available without the OC.
However, it is noted that most developers in places like Mumbai and Delhi do not simply provide a certificate of ownership and avoid several legal loopholes due to the real estate industry’s general lack of organisation. “Over 50% of the buildings in Mumbai are still not OC, and homeowners there continue to pay somewhat higher property and water taxes,” says Rajesh Ahuja of Gurukrupa Estate Consultants. Even banks do not handle liability insurance if the structure is constructed as intended.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
