Difference Between EC, OC, and CC Explained for Homebuyers

2. Occupancy Certificates (OC)

What is an Occupancy Certificate (OC)?

An Occupancy Certificate (OC) additionally known as a Certificate of Occupancy is issued by a local government or development authority confirming that a building follows national building standards. This certificate must be obtained for any real estate transaction whether the buyer intends to live in or sell the property.

Importance of Occupancy Certificates

Buildings without an Occupancy Certificate (OC) may fail to meet safety standards and be constructed inappropriately. Here are some of the reasons that residing in such a residence is illegal under Indian law:

• The building may be unsafe due to issues with construction, electrical systems, or fire safety.
• The building could involve unapproved extensions or modifications that depart from the permitted plans.
• In the case of an accident, occupants can't hold anyone responsible and insurance claims may not be paid.
• The building structure could be demolished, and officials may turn off services such as electricity, water, and drainage.

How Does OC Safeguard Homebuyers?

The Occupancy Certificate (OC) is an important document that confirms the building's livable status according to civic standards. As a result, a buyer should obtain it from the builder to ensure it's suitable for possession. Additionally, it seals the building's legal status and safeguards your ownership rights.

3. Completion Certificates (CC)

What is a Completion Certificate (CC)?

A Completion Certificate (CC) is issued once a building plan has been approved and the housing project is completed. Any housing project gets a completion certificate when authorities inspect the site and verify the documentation to ensure that no applicable building codes or laws are violated. It is the duty of an individual such as a property developer to secure a completion certificate for a housing project.

The Completion Certificate contains all of the necessary information such as the location of the building, the identity of the land, and the developer or owner. It additionally contains the height of the structure and a description of the materials used for constructing it.

A Completion Certificate also indicates if the project is developed with the building plans and the local municipality's rules and regulations such as the distance from the road and between neighbouring buildings.

The Completion Certificate (CC) provides the following information:

• Complete details of the property or land
• Every detail regarding the building design
• All details regarding the real estate builder
• Approved building height
• The project's location and distance from other buildings in the surrounding area.

Importance of a Completion Certificates (CC)

• A Completion Certificate is a record of the builder's compliance with the National Building Code of India (2005).
• To obtain necessities like water, electricity, etc.
• After obtaining a certificate, the non-domestic water rate is converted to a domestic rate in residential buildings.
• When the building is completed, its property tax assessment will take effect.
• A completion certificate will facilitate the payment of the final instalment of the home loan which allows repayment to begin.

What is the difference between an Encumbrance Certificate (EC), Occupancy Certificate (OC), and Completion Certificate (CC)?

Buying a property is stressful, and the documents required by law can be confusing for buyers. The most common mistake involves the difference between EC, CC, and OC. Refer to the following for an overview of the basic differences between them:

• Encumbrance Certificate (EC): A legal document confirming that a property is free of any financial or legal obligations.
• Completion Certificate (CC): A legal document issued once the building has been completed by the building plan and other requirements.
• Occupancy Certificate (OC): A legal document indicating that the building structure is now safe to enter. After receiving the CC this is issued.

Conclusion

Lastly, an Encumbrance Certificate (EC) determines whether the property is free of any obligations and has no charges against it. Therefore, EC is required when selling a property/land or obtaining a loan against it.

An EC is different from an occupancy certificate and a completion certificate. A completion certificate ensures the authorities that the property meets all of their standards and complies with the approved building plan. It also assures the buyer that the home is safe and that water and electricity will be provided regularly.

It is advised that homebuyers must obtain all of these certificates. If these certificates are unavailable, homebuyers may suffer even if they are not at fault. In addition, acquiring an occupancy certificate while registering a property should be mandated.