All You Need To Know About Partial Occupancy Certificate

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You have the opportunity to invest in real estate at a relatively modest cost by purchasing under-construction properties. In addition, they provide you with the opportunity to live in a brand-new home—something that a resale property does not. But in order to get the most out of your investment, you must be knowledgeable about a number of technological, financial, legal, and civic facets. You need to understand the significance of partial occupancy certificates in the purchasing procedure in this particular scenario.

Buyers understand that until a housing project has an occupancy certificate (OC), they are not permitted to occupy a unit in the property. Large-scale residential developments these days are usually constructed gradually. The developer is entitled to apply to the local authorities for a partial occupancy certificate (POC) whenever a portion of the project is finished.

For instance, a realtor could apply for a POC as soon as the first tower's construction is finished if he is planning a major housing project that calls for the construction of, say, eight storeys. The question that now has to be answered is: Is it permissible to live in a unit that has a POC but no OC?

The short answer is that you have every right to live in a tower unit for which your developer has a proof of completion. But after the project is finished in its entirety, the builder needs to submit an OC application.

The following are some crucial points regarding POC that you should remember:

Home loan: A bank would not be ready to provide you a loan for a project that has only obtained a POC, unless your developer has a connection to it. When selecting a new unit from a developer's unsold inventory, confirm that the developer is holding an OC rather than merely a POC.

Validity: The POC's validity ends as soon as the project is finished; in actuality, this means that a builder has seven years to finish the project for which he has a POC. Following that, the developer has 30 days to submit an OC application to the development authority. A POC does not, however, ensure that the developer will receive the OC as well, as this would rely on a number of variables.

Ownership documents: Although you can use the POC to apply for utilities, the authorities might not approve of you presenting the paperwork proving you are the property's owner. For example, the city's development body in Bengaluru won't give out khata certifications until you show an OC.

Project status: After receiving a proof of concept, buyers are required to keep a careful eye on the project's advancement and request that the developer provide an OC as soon as the project is finished in its entirety.

Ownership: Using a proof of concept, the developer might propose to take ownership of the units located within a completed tower. If this weren't the case, the purchaser of Tower A would not be able to take control of the building until, for example, Tower D in the project was finished. Therefore, this arrangement benefits the buyer as well as the realtor.

Realtors have been observed to demand that purchasers take possession of their apartments, claiming to have a proof of completion for the skyscraper. Buyers discover their apartments unfit for habitation upon arrival. First of all, by definition, the developer cannot compel you to move into something that is uninhabitable. The Real Estate Regulatory Authority in your state needs to be made aware of this.

Common facilities: Although the legislation states that housing units in a partially constructed complex cannot be transferred without providing tenants with access to common areas, there have been multiple cases when purchasers have had to wait a long time to utilize common areas.