What is OC in Real Estate? OC Full Form and Other Details

OC is an acronym for Occupancy Certificate and refers to a crucial document in the real estate sector that certifies a building, be it commercial or residential, has been constructed in compliance with safety norms and regulations. Check out the article below to get insights into Occupancy Certificate and make strategic real estate investment in India.

Understanding Occupancy Certificate (OC)

OC is an acronym for Occupancy Certificate and refers to a crucial document in the real estate sector that certifies a building, be it commercial or residential, has been constructed in compliance with safety laws and regulation mandated in the Real Estate (Regulation and Development) Act, 2016.

The RERA Act 2016 brings about revolutionary changes in the real estate industry in India by introducing uniform, standardised, and professional laws for real estate builders as well as buyers looking to buy property for sale.

One of the rules mandates real estate projects to issue various certificates from authorities to bring transparency in real estate business and build a sense of trust among real estate investors. Occupancy Certificate (OC) is one of certificates issued that allows buyers to check if the property is constructed following all the safety measures and that it is safe for occupancy.

Other mandatory certificates in the RERA Act 2016 that need to be issued are Competition Certificate, Possession Certificate, No Objection Certificate, Environmental Certificate etc.

Why do even homebuyers understand what OC in real estate means?

Occupancy Certificate is one of the crucial certificates under the RERA Act 2016 and ensures compliance of the building constructed with all the safety measures including fire safety, and makes the property safe to buy. It is issued after the completion work of the building is completed by the local municipal authority and is available on the RERA website, making the building a safer option to invest in property rather than the one that doesn’t have an Occupancy Certificate.

OC Full Form, Meaning & Analysis

Let’s understand OC in depth and get better insights into it and make a comprehensive real estate investment.

OC Full Form

OC full form is ‘Occupancy Certificate’ and is issued by the local municipal authority to the building constructed after taking its inspection with their team of professionals and checking if it's compliant with all the safety rules and measurement under the Real Estate (Regulation and Development) Act, 2016.

The issuance of an Occupancy Certificate (OC) is a crucial part in the streamlined real estate industry in India and if a developer fails to obtain an OC, or if the building does not comply with safety norms and regulation, the Real Estate Regulatory Authority (RERA) is liable to impose penalties and take appropriate legal action against the developer.

Importance of OC in Real Estate

Occupancy Certificate is important in the real estate business for a variety of reasons. Check out the bullet points below to get better insights into it:

• Compliance with Legal Norms: Obtaining Occupancy Certificate is a mandatory legal requirement under the RERA Act, and a builder could face legal consequences if they fail to get an OC. An Occupancy Certificate states that a building is constructed in compliance norms and regulation, taking into consideration safety to its buyers.
• Enhanced Safety Assurance: The RERA Act brings standardised regulation to be followed in every real estate project. A issued Occupancy Certificate showcases that a building is constructed with safety measurement such as Fire Safety, Electrical Safety, Emergency Exists, Clear Signage, Fall Protection, etc and is issued only after thorough inspection from the team of local municipal authority.
• Better Financing Options: Taking a home loan becomes easier for buyers for a building that has been issued its Occupancy Certificate. An Occupancy Certificate ensures a bank that a real estate project is built in accordance with safety norms which consequently reduces risks involved.
• Increased Resale Value: An Occupancy Certificate states that a building is built in accordance with the rules and regulation laid in the RERA Act 2016 and hence prompting more people to invest in it and consequently increases its resale value, providing higher capital appreciation and returns on investments.

The Authority responsible for issuing the OC

The Occupancy Certificate (OC) is issued by the local municipal authority or the local planning authority usually located in the city where the real estate project is developing. An Occupancy Certificate is issued after thorough inspection of the building and due check out if it complies with every safety norms and regulation.

Noida Authority or Greater Noida Industrial Development Authority in Uttar Pradesh is one of the few examples of such local planning authorities in India.

The process of obtaining an Occupancy Certificate (OC)

The process of obtaining an Occupancy Certificate has been streamlined by the Real Estate Regulatory Authority for smooth real estate business and transactions. Check out the points below to get details into the process of obtaining an OC:

1. Completion of Construction of the Building

   The first step involves completion of the real estate project in accordance with the approved layout plans with taking into consideration norms and regulation for safety of the residents.

2. Application Submission

   The second step involves submitting an application to the local authority (such as Noida Authority) along with required documents for approval. The required documents involves:

   • Approved Building Plans

   • Completion Certificate

   • No-Objection Certificate (NOCs) from relevant departments like Fire, Water, Electricity etc.

   • Structural Safety Certificates

3. Site Inspection

   The third step involves inspection of the site(or building) from a team of local authorities after receiving the application. The team of professionals examine the building for safety norms like Fire Safety, Electrical Safety, Emergency Exists, Clear Signage, Fall Protection, etc.

4. Rectification of Deficiencies (if any)

   If the team of local authority finds any discrepancy in the project, the authority may ask the builder to rectify it and request for a re-inspection.

5. Issuance of Occupancy Certificate (OC)

   After inspection from the team and meeting all the necessity conditions, the authority issues the Occupancy Certificate to the builder. The OC states that a building is fit for occupancy.

6. Post-Issuance Compliance

   After the issuance of OC, the builder is required to provide a copy of the certificate to each buyer and it is instructed to comply with any additional guideline mentioned in the OC for complete safety.

How to verify the authenticity of an Occupancy Certificate?

The authenticity of an Occupancy Certificate could be verified in various ways by the buyers. Here, we are listing ways to verify and check the authenticity of an OC:

• Check with the Local Municipal Authority, or Municipal Authority (like the Noida Authority, or the Greater Noida Authority)
• Verify online on the RERA website of the real estate project
• Cross-check property details like its location, size, and approved layout plan in the Occupancy Certificate.
• Review the stamp & signature on the Occupancy Certificate of the issuing authority.
• If you still are uncertain, you could consult a professional like a real estate lawyer, or an experienced real estate consultant.

Differentiating Between Occupancy Certificate, Completion Certificate, and Possession Certificate

Check out the table below to get better insights into the difference between Occupancy Certificate, Completion Certificate, and Possession Certificate.

Occupancy Certificate	Completion Certificate	Possession Certificate
It certify that a building is constructed in compliant with all the safety norms and regulations and is ready for occupancy	It certifies that a project is completed in compliance with all the safety norms and regulations.	The certify that a change in ownership of the property.
It is issued by the local authority after site inspection	It is issued to real estate builder before they acquire an OC	It is issued by the builder after getting a CC from the local authority

Debunking common misconceptions on OC in Real Estate!

Misconception 1: Occupancy Certificate is same as a Completion Certificate

Reality: An OC certifies that a building is constructed in compliance with all the safety norms and regulations after thorough site inspection from a team of professionals, whereas a CC certifies that a building is completed in compliance with all the safety norms and regulations.

Misconception 2: Occupancy Certificate is required for just large projects

Reality: An OC is required for all types of real estate projects, be it commercial property or residential property of any size and area, irrespective of its location.

Misconception 3: Occupancy Certificate is optional if possession is given

Reality: Possession of a property without an OC is illegal and the Real Estate Regulatory Authority can initiate legal action against the real estate builder for not obtaining an OC.

Misconception 4: OC is not necessary for home loans or resale

Reality: Every bank and financial institution requires an OC before approving a home loan as it reduces chances of risks involved and also upscale property’s resale value.

Misconception 5: Occupancy Certificate can obtained after moving in

Reality: Moving in a property (building) without obtaining an OC could be risky as the building has not been inspected for safety measurements and could be prone to disasters.

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FAQs regarding OC in Real Estate

What is OC in real estate?

An Occupancy Certificate states that a building is ready for occupancy after inspection from a team of professionals for its fulfilment of safety norms and regulations.

What is OC full form in real estate?

OC stands for ‘Occupancy Certificate’ and is issued by the local municipal authority to the building constructed after taking its inspection with their team of professionals and checking if it's compliant with all the safety rules and measurement.

What is CC in real estate?

Completion Certificate certifies that a project is completed in compliance with all the safety norms and regulations.

Who issued the OC to builders?

The Occupancy Certificate is issued by the Local Municipal Authority where the property is located such as Noida Authority in Uttar Pradesh.