Real Estate News

The Mandatory Acquisition of the OC & CC Registered by RERA
  • Ranking
  • reviews

  • 0 votes
    • Vote this

New Delhi, 5 July, 2017: OC, termed as Occupancy Certificate and CC, termed as Completion Certificate, are the certificates which are issued by the competent authority of a particular location or the Municipality. Though both the certificates are applied to the builder, they have a different purpose. Before discussing the certificates further, let’s find out its specifications.
OC- This certificate is provided after the completion of a survey, which ensures that the project has been completed in compliance with certain civil laws and safety measures. The compliance factors include fire safety, sewage, water supply, rainwater harvesting, electricity, and in the case of tall buildings convenient accessibility of the fire fighting engine should be easily available. Earthquake safety measures are one of the main factors of the survey. This certificate is only granted to the builders once the Completion Certificate is obtained.
CC-  The building completion certificate covers the technical aspects of the building. This certificate includes whether the building has been completed in accordance with the building rules of that area and the sanctioned plans of the building.
It is mandatory for the builders to have both the certificates before handing over the flat to the owners.

The Act: OC but no CC
This act has been instated for getting the registration of the completion certificate from the Real Estate Regulatory Authority or RERA within 31st July 2017. This applies to both the on-going and under-construction projects, which have not been registered yet.
After the implementation of the RERA, few aspects have been found missing after the completion of a survey. In multiple cases, the compulsory occupation certificate and the completion certificate were absent. Therefore, the under-construction projects, which have a minimum of 500 square meter plot size or eight apartments, will have to get the registration done within the above-mentioned time frame.

Section 3 of the Act Proposed by RERA
According to this section of the act, no promoters or builders will be able to showcase the plot, building, or any part of the project via booklet, magazine, lucrative offers, or invitation in any of the planning areas, unless the real estate project has been registered with the Real Estate Regulatory Act. Relaxation has been given to the on-going projects, in which the builders will have to apply for the registration of their project within three months from the date of initiation of this act.

Exemptions of the Act
The completed projects have been kept out of the range of this act. But the main factor to ponder before coming to a conclusion is what a completed project is? And, what will be the consequences if, any, completed project has the occupation certificate and not the completion certificate?
The physical completion of the project is not the only factor RERA is looking for. The project will not be considered to be completed unless the Resident Welfare Associations or the RWA of the society is formed, and the entire business related activities are handed over to the RWA in compliance with the rules of RERA.

Multiple Projects having OC but no CC or vice versa
After the implementation of the act, many cases of having OC, but no CC and vice versa have emerged. But according to the Act, any builders who don’t have either of the certificates need to register their projects under RERA, within 31st July 2017. Even if a housing complex or building has been completely sold or occupied by the owners, the CC is a mandatory attestation and is a legal recognition of the project completion in accordance with the safety rules and regulations that were pre-set by the Municipality.
It has been made very much clear to the promoters and builders that the projects which are under construction or the one which has not received the completion certificate, when RERA was not implemented as a legal movement, will have to follow the instructions for registering themselves under the act.

Benefits of the Act
The buyers who have taken the projects those are under construction will be having a distinct idea regarding the possession of their property. If due to any circumstance the builder fails to deliver the property in the given time frame, then the customers will have the legal right to stand against the builder. The same rule is applicable if the builder fails to provide the facilities and equipment at the time of the agreement and the two-third of the residents of the same apartment agrees to the same.

Grey Area Projects
Some of the states have kept several of their under-construction projects out of the periphery of this act. Therefore, it is the duty of the owner to check with the rules and regulations of the state to secure their investment, as RERA ensures the buyers with the safety of their investment.<
It is highly advisable to invest in the newly instated projects, which fall under the category of RERA, securing their investment.

Supriti Ganguly

Author: Supriti Ganguly

Supriti Ganguly is a Content Contributor at a3solutions.in. She is having more than three years of experience in working closely with B2B and B2C businesses providing blog writing, article writing, news writing, and copywriting services. Supriti is a professional writer with extensive knowledge on content marketing and adept in content strategizing for business collaterals. She is experienced in writing technical, promotional articles, and blogs that leave a lasting impression on readers.