Completion Certificate: The Assurance of Your Property’s Legal Status

A completion certificate (CC) is one of those essential documents that you should obtain from the developer while buying a home. You might feel like skipping a CC to keep the long documentation process short. But before you do so, remember that this document legalises the property and becomes essential for reselling or mortgage purposes. If you already do not know about the importance of a completion certificate, I shall be taking you through all the details about this essential legal document in this article. This article includes:

What Is a Completion Certificate?

A completion certificate, issued by the relevant authority, confirms that a building or complex complies with the approved plans and local development regulations, thereby legitimising the real estate project. This essential document is required by developers and owners for legal validation of their standalone structures.

The completion certificate of a building covers all the vital information related to the project, including the building materials, building height and building plan. The local authority issues this certificate only after inspecting the building project. Therefore, a CC showcases that a developer has not violated any rules and ensures the quality of the real estate property. Furthermore, this certificate is needed to obtain utility services like water and electricity.

A developer can also claim a provisional completion certificate after partial completion of the project if the builder wants to give possession of the building to the property holder. The provisional CC is valid for only six months. Once the six months are over, the developer must obtain a full completion certificate.    

How Is a Completion Certificate Different from an Occupancy Certificate?

The local civic body issues an occupancy certificate certifying that a building is constructed following the building construction norms and has all the basic amenities, including the NOC from the fire department. This certificate ensures that the property is fit for living. The owner must possess an occupation certificate before shifting to a new house.
Read: RERA Bill 2016 Guide – Real Estate Regulation and Development Act 2016

On the other hand, a completion certificate certifies that the building is constructed by following the approved building layout and the standards set by the local authority, like building height and the distance from the road, among many other things. This certificate is compulsory to apply for basic amenities like electricity and water supply.

In simple words, getting a house completion certificate is the first certificate after completing a real estate construction. It only approves that the building has followed the building plan and the master plan of the city. At the same time, the occupancy certificate is the next step that certifies that the building is as per the living conditions. A developer can only get an occupation certificate after occupying the completion certificate.

What Is the Importance of a Completion Certificate for Developers?

A completion certificate is of sheer importance for the developers to legalise their construction. Without this certificate, the structure is not considered legal, which might invite difficulties later on. Here are some of the reasons behind the importance of a CC:

• It contains all the information of the construction, including the developer’s name, location and identification of the land, the building’s height, and quality of the building materials.
• It indicates that the construction follows an authorised construction plan and all the construction regulations, including the height of the building, its distance from the road and the distance from the neighbouring buildings.
• This certificate is mandatory to apply for electricity and water supply.
• The developer can only apply for an occupancy certificate after obtaining a completion certificate.

What Is a Provisional Completion Certificate?

As the name suggests, a provisional completion certificate is a temporary certificate. There are times when most of the building is partially complete, but the builder needs to offer the buyers occupancy of the same. In such cases, the builder can apply for a provisional CC. This provisional completion certificate is valid for only a limited period of six months, and the builder must complete the project within this period. Only then, the builder is eligible for the issuance of a full CC.

What Is the Importance of a Completion Certificate for Homebuyers?

It is often conceived that a completion certificate is only for the developers or the builders. The home buyers also tend to ignore the fact whether the builder has the CC or not. However, a completion certificate is essential for the buyers too.

• A completion certificate makes sure the buyer is not residing in an illegal property.
• A certificate of completion means is the first step for getting an occupation certificate. If someone is residing in a building without an occupancy certificate, it is illegal.
• Completion certificate for house ensures a regular supply of water and electricity.
• Claiming the benefits of the property tax is only possible after getting a completion certificate.
• A completion certificate is needed for residential buildings to convert water rates from non-domestic to domestic ones.
• Without a completion certificate, a buyer can face penalty and even eviction from the property by the authorities.
• It will be challenging to find a buyer without a completion certificate if anyone wants to sell the property in future.

However, authorities can allow one to reside in a building without a completion certificate if most of the construction work has been done and there is a possibility of completing the assignment shortly. This can happen in projects that are stuck for a long time for some reason or another. At the same time, if the developer does not provide the buyer with a completion certificate, the buyer can approach the local body on his own for a completion certificate.

Details Provided in the Completion Certificate

The details provided in a completion certificate include all the information related to the construction. They are:

• The name of the developer
• The information about the location
• The identification of the land
• The details about the approved building plan
• The height of the building
• The other information as per the local building standards like its distance from the road

How To Obtain a Project Completion Certificate?

A builder can apply for a project completion certificate after the completion of the building project. The builders require applying to the local civic body like the Municipal Corporation or local development authority. The authorities will issue the completion certificate only after inspecting the construction.

Documents required for a Completion certificate 

The documents required for applying for a completion certificate online vary from state to state. Every state has different sets of requirements. Here is a general list of the required documents:

• Duly filled application form
• Building completion certificate by an Engineer or a licensed Architect 
• The building plan approval letter (copy)
• Structural safety certificate or letter from concerned technical personnel
• Property tax receipts (copy)
• NOC from the fire department, if applicable
• NOC for lift installation, if applicable
• NOC for the sewage system
• NOC for the water supply plan
• Certificate for electric supply
• Affidavit for provisional completion certificate (if applying for a provisional completion certificate)
• Any other document or declaration, if applicable

How Long Does It Take to Get a Project Completion Certificate?

Once a developer successfully submits the application form, the local authorities will schedule an inspection. A team of officials from the local Municipal Corporation or local development authority will inspect the construction as per the schedule. Upon satisfaction that the building has followed all the rules and regulations, the issuance of the completion certificate will take about 3-4 weeks.

However, if the inspection team finds any major violation of rules, they might issue a letter with instructions for demolition. In cases of minor violations, the team charges a reasonable amount of penalty. A completion certificate will only be issued after fulfilling all the requirements mentioned above.

Who issues the completion certificate?

The local civic body, like the Municipal Corporation or local development authority, issues the certificate of construction completion. The certificate is only issued after a complete inspection of the real estate property to ensure if the developers maintained all the local bylaws.

Sample of building completion certificate format

Here is a sample of the building completion certificate format:

What If the Developer Does Not Have a CC? Should You Buy a property?

While buying a house from a developer, you should always ask for the completion certificate for residential buildings. A certificate for completion of construction makes the property legal in the eyes of the authorities. It also ensures the electric and water supply. Without a completion certificate, the builder cannot apply for and provide you with an occupation certificate. Moving into a property without an occupation certificate is illegal. You might face a penalty or eviction notice from the authorities. At the same time, you will also need a completion certificate to claim income tax benefits on the home loan. It will also be required while reselling your flat or house. Therefore, if a builder cannot provide you with a completion certificate, buying that property can be a risky investment.

How Can a Legal Expert Help?

Real estate developers or individual homeowners unfamiliar with legal paperwork may benefit greatly from professional guidance. Handling vital documents like a completion certificate requires skilled expertise to ensure proper drafting and processing. This certificate, crucial for legalising your property and guaranteeing basic amenities, plays a key role in the property’s future viability. 

Legal assistance not only simplifies the process but also protects your legal interests during the completion certificate’s acquisition. This certificate is essential for proving your property’s compliance with building norms and is a prerequisite for obtaining an occupancy certificate, confirming the property’s suitability for habitation.

If you need any legal advice regarding the documentation process or residential building completion certificate format, you can opt for the legal services of NoBroker. Our experienced legal experts are ready to guide you throughout the legal process of obtaining a completion certificate.  

FAQ’s

Subscribe