Completion certificates, also known as occupancy certificates, are documents issued by the local government to certify that a residential or commercial building has been completed according to plan and meets all necessary safety standards.
In India, it is mandatory for every building owner to obtain this certificate to get the property registered with the government. However, there have been several cases in recent times where completion certificates have caused more harm than good. In this article, we look at why obtaining a completion certificate can be more harmful than helpful regarding real estate in India.
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Meaning of Completion Certificate in real estate
A completion certificate is an important document that certifies that a construction project has been completed as per the approved plans and specifications. It is issued by the competent authority after due inspection of the project. The certificate is generally required for availing occupancy certificate, final inspection by government agencies, and for getting electricity and water connections.
However, in recent times, there have been instances where builders have obtained completion certificates without actually completing the construction or without adhering to the approved plans and specifications. This has resulted in several problems for buyers, who have had to face delays in taking possession of their homes or have faced sub-standard construction. Some buyers have even had to vacate their homes due to structural defects.
Hence, buyers need to be aware of the risks involved in buying a property without a completion certificate. They should carry out due diligence before making any purchase and should only buy from reputed builders with a good track record.
Benefits of Completion Certificate in real estate
A completion certificate is an important document in buying or selling a property in India. It is a document that certifies that all construction work on a particular property has been completed as per the approved plans and regulations.
However, a completion certificate can also be more harmful than helpful in real estate transactions in India. This is because the certificate does not always mean that the property is ready for occupation. There are several cases where buyers have taken possession of properties without a completion certificate, only to discover later that there are major defects in the construction.
In some cases, the builder may obtain a completion certificate even though the construction is incomplete. This can happen if the builder pays a bribe to officials or if the officials are simply negligent in their duties. In either case, the buyer suffers because he or she ends up with an incomplete property.
It is therefore, important for buyers to be aware of the risks involved in taking possession of a property without a completion certificate. They should ensure that they carry out due diligence before making any purchase.
Read more:
THE IMPORTANCE OF OCCUPANCY CERTIFICATE (OC) IN REAL ESTATE
Importance of Completion Certificate in Indian real estate
It is a document proving that a particular construction project has been completed per the agreed-upon schedule and terms. This certificate is generally issued by the builder or developer to the buyer. However, in some cases, the government or local authority may also be involved in issuing the completion certificate.
The main purpose of this certificate is to provide legal protection to both parties involved in a real estate transaction. In case of any dispute between the buyer and builder, this certificate can be used as evidence in court.
However, there are certain caveats associated with this certificate. Firstly, it does not guarantee that the property is free from all defects and encumbrances. Secondly, it is issued at the sole discretion of the builder or developer, and they may choose not to issue it if they find any reason to do so.
Lastly, and most importantly, it is important to remember that this certificate does not replace an occupancy certificate which is mandatory for all properties in India. An occupancy certificate is issued by the government after due inspection of the property and it certifies that the property is fit for habitation. So, even if you have a completion certificate, check if an occupancy certificate has also been obtained before moving into your new home.
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HOW TO OBTAIN AN ENCUMBRANCE CERTIFICATE IN THANE
Real estate Completion Certificate details
A Completion Certificate (CC) is an official document that certifies that a building has been constructed per the approved plans and specifications and complies with all applicable laws and regulations.
While a CC may seem valuable, it can be more harmful than helpful in the Indian real estate market. This is because:
1. There is no standard format for a CC so that they can vary greatly in terms of quality and accuracy.
2. Many CCs are issued without any inspection or verification by government authorities, meaning they may not be accurate or up-to-date.
3. CCs are often used as a marketing tool by developers to sell properties before they are completed, which can lead to buyers being misled about the true status of the property.
4. In some cases, CCs are fake or forged, which can cause serious legal implications for buyers who purchase properties based on these documents.
5. Finally, due to the lack of standardization and regulation around CCs, they are not always accepted as proof of completion by banks and other financial institutions, making it difficult for buyers to obtain loans or finance for their purchase
Reasons why a Completion Certificate can be more harmful than helpful in Indian real estate
It is a common practice in India for builders to seek completion certificates from buyers before handing over the possession of a property. However, this can at times, do more harm than good.
Here are some reasons why a completion certificate can be more harmful than helpful in Indian real estate:
1. It gives the builder a false sense of security:
A builder may seek a completion certificate from a buyer to feel assured that the buyer will not back out of the deal or demand additional work be done on the property. However, this is not always the case. There have been instances where buyers have refused to take possession of a property even after receiving a completion certificate, leaving the builder in a lurch.
2. It puts unnecessary pressure on buyers:
A builder may try to pressure buyers into accepting a property as-is and signing a completion certificate, even if there are outstanding issues that need to be addressed. This can lead to disputes between the builder and buyer down the line and cause unnecessary stress for both parties involved.
3. It can delay possession:
In some cases, builders may request a completion certificate even before all the construction work on a property has been completed. This can further delay possession for buyers eagerly waiting to move into their new homes.
Also read:
RERA-LIZE YOUR RIGHTS: A STEP-BY-STEP GUIDE TO FILING RERA COMPLAINT
Conclusion
A Completion Certificate in Indian real estate is essential to protect the investment you have made. It ensures that the construction of your property has been completed as per the approved plans and specifications and meets all the necessary safety and quality standards.
It is also a legal document that can be used to establish property ownership. Obtaining a Completion Certificate is not always a straightforward process, but it is well worth the effort to ensure that your property is properly protected. If you have any questions or concerns about the process, please do not hesitate to contact us.
Frequently Asked Questions:
- What is a Completion Certificate in real estate?
A Completion Certificate is a certificate issued by the developer of a real estate project once the project has been completed. This certificate is then used to register the property with the relevant authorities. The certificate confirms that the property has been built according to the approved plans and specifications and meets all the necessary safety and quality standards.
- What if a builder does not have a Completion Certificate?
A builder must have a Completion Certificate to ensure the owner of the property is able to obtain a certificate of occupancy from the municipality. The municipality may require the builder to obtain a Completion Certificate before issuing a certificate of occupancy. Without a certificate of occupancy, the owner may not be able to legally occupy the property.
- Is it possible to sell a house without a Completion Certificate?
If you’re considering selling your home, you may wonder whether you need a Completion Certificate. The answer isn’t always straightforward, as it depends on many factors. For instance, if your home is new or has undergone significant renovations, then you will definitely need a Completion Certificate to sell it.
On the other hand, if your home is older and has yet to be renovated recently, you may not need one. Ultimately, it’s best to check with your local authorities to find out for sure.
