What is Completion Certificate?

A certificate does not make you certified. Attitude, performance, commitment to self and team – these and a certificate make you certified.

INTRODUCTION

After a housing project has been completed in accordance with a building plan that has been approved, it is granted a completion certificate, which is a legal document. Any housing project that has not violated any applicable building bye-laws is given a completion certificate once the relevant authorities have visited the site and reviewed all the paperwork. The developer is in charge of obtaining a completion certificate for a housing project.

The developer of a housing project is not permitted to submit an application for utilities including water, electricity, and drainage systems until the project has been certified as complete.

A completion certificate comprises all the building’s information, including its location, the land’s identification, information about the developer or owner, the building’s height, and the calibre of the materials used. It also indicates if the project has been built in compliance with the building plans and with the guidelines established by the local municipal authorities, including the separation from the road and the spacing between neighbouring structures, among other things.

Among the many details provided in a completion certificate are:

Details of the land
Every detail of the building plan
All details about the builder
Approved height of the building
The location of the project and its distance from other buildings in the nearby area

In essence, a completion certificate provides assurance to the relevant authorities that a facility complies with all requirements set forth by them and follows the approved building plan prior to the start of construction. Homebuyers are also given the assurance that the house is secure and will always have access to electricity and water.

Importance of a Completion Certificate

Completion Certificate for Developers – For a developer, obtaining a completion certificate is required. To legally certify their construction, developers absolutely must get a completion certificate. The structure is not considered legal without this certificate, which could cause issues in the future.

The following are some justifications for the significance of a CC:

It includes all relevant construction information, such as the name of the developer, the location and description of the land, the height of the building, and the calibre of the building materials.
It proves that the building is being constructed in accordance with an approved construction plan and all applicable building codes, including those governing building height, distance from the road, and distance from other structures.
To apply for power and water supply, you must present this certificate.
Only after receiving a completion certificate may the developer submit an application for an occupancy certificate.

Completion Certificate for Homebuyers –Taking ownership of a new property without a property completion certificate is not advised.

A completion certificate is frequently thought to be exclusive to developers or builders. Whether the builder has a CC or not is another factor that home purchasers frequently overlook. However, buyers must also have a completion certificate.

A completion certificate ensures the purchaser is not residing in an unlicensed building.
The initial step in obtaining an occupation certificate is to obtain a certificate of completion. It is against the law for someone to live in a building without a certificate of occupancy.
A house’s completion certificate guarantees a consistent flow of water and electricity.
Only after receiving a completion certificate is it allowed to claim the advantages of the property tax.
For residential buildings to switch from non-domestic to domestic water rates, a completion certificate is required.
A purchaser risking fines or possibly eviction from the property by the authorities without a completion certificate.
If someone wishes to sell the property in the future, it will be difficult to find a buyer without a completion certificate.

Authorities may, however, permit a person to live in a building without a completion certificate if the majority of the construction work has already been done and there is a chance that the project will be finished soon. This may occur in initiatives that have been stalled for a while for many reasons. At the same time, the buyer has the option to go to the regional body on his own for a completion certificate if the developer does not give him one.

Provisional and final completion certificates

When a builder wants to turn over an apartment to the occupants but there is still unfinished business on the project, they are typically given a provisional completion certificate. Although the provisional certificate is valid for six months, the builder must apply for the final completion certificate after that.

After the construction is finished, a final completion certificate is given. The FAR/FSI limit, the number of storeys, the structural design, the quality of construction, the distance from the road, the distance from nearby structures, the height of the building, the approved building plan, and other criteria are some of the rules and requirements the builder should go by.

Buyers can either go to the local municipal authorities to get the completion certificate or can create a resident’s welfare organisation (RWA) to expedite the procedure in some circumstances if the developer has not received a CC. Without a completion certificate, a buyer should ideally avoid taking possession of a home or other structure as this could result in later legal issues including eviction from the structure or its demolition. Therefore, before giving the builder the last payment, it is crucial to insist that they obtain a completion certificate.

How to obtain a completion certificate?

A completion certificate can be obtained from the Chief zonal officer of the municipal corporation/development authority of your city. You and your architect need to submit a proper completion certificate application along with the following documents

Copy of sale deed/lease deed
Copy of approved building plan and permission letter
Receipt of property tax paid up to date, if any
Receipt of water tax paid
Receipt of underground drainage connection charges
Receipt of electricity cable & road cutting charges paid
Receipt of bore well permission fee paid if any
Affidavit on Rs 10/- Non-judicial stamp paper to be attested by Notary Public/Metropolitan magistrate declaring ownership of the building, details of the architect/engineer engaged for construction, and completion of construction as per bye-laws
Other documents as demanded/ required by the concerned authorities

The authorities will then carry out a physical assessment of the structure to determine whether it was built in accordance with the approved plan before issuing the certificate.

A fee will be assessed based on the degree of the deviation if there are variations of up to 5% from the approved plan. After the cost is paid, the OC will be issued.

Case laws

Emtex Industries (India) Ltd. And … vs Maharashtra Industrial … on 2 April 2004

This petition is filed by the petitioners for quashing and setting aside a demand notice dated 23rd December 2003 for a number of Rs. 2,09,64,344/- (Exh. K). Prayer is also sought to direct respondent No. 1 to accept the Building Completion Certificate dated 11th April 1989 issued by the Area Manager of respondent No. 1 – Corporation.

The petition was filed on 15th January 2004. On 19th January 2004, we issued notice. By way of ad interim relief, respondent No. 1-Corporation was restrained from discontinuing water supply to the petitioners’ factory.

Pursuant to the notice issued by this Court, the respondents appeared. An affidavit-in-reply was filed by the Executive Engineer of respondent No. 1. In the affidavit, it was stated that the Corporation is established under the Act with the avowed object of ensuring a planned and accelerated development of industries in the State. Upon allotment of each plot to an entrepreneur/industrialist, the construction of the factory/ structures had to be carried out in accordance with the sanctioned plans. It was necessary because marginal spaces as required were to be left open. A completion certificate could be granted to an entrepreneur only if it is found that the construction is in conformity with sanctioned plans. B.C.C. is thereafter issued by the Executive Engineer on completion of the building in favour of an allottee in accordance with the terms and conditions contained in the deed. It is the case of the first respondent that since construction made by petitioner No. 1 was not in conformity with sanctioned plans and there was an unauthorised structure and breach of terms of the agreement, B.C.C. was not issued to the first petitioner. Regarding the certificate of April 11, 1989, by the then Area Manager of the Division, it was stated that he had issued a letter stating therein that “it has been treated that the building has been completed in 1976.” According to the deponent, it would not amount to a Building Completion Certificate (B.C.C.). B.C.C. can only be issued by the Executive Engineer of respondent No. 1.

It is necessary for the plot holders to obtain the Building Completion Certificate and for that purpose, it is necessary that the Corporation should take some concrete steps. If Building Completion Certificate is not, obtained, it is against the Development Control Regulations and it becomes difficult for M.I.D.C. to implement the Development Control norms. Considering these difficulties, this Circular M.I.D.C. notifies that when the water connection is being granted to the plot holder for the construction of the Building at that juncture, the rate of water charges should be charged 1.5 times more than the existing rates of that area and such rate of water charges should be charged till the time Building Completion Certificate is obtained to ensure that plot holders obtain Building Completion Certificate within the prescribed time limit and strictly in consonance with the provisions of Development Control Regulation

Greenville Reality And … vs Godrej Properties And … on 6 February 2020

. Learned senior counsel invited my attention to the letter dated 12th September 2001 addressed by the respondent to the claimant and would submit that the respondent had shown its willingness to accept the keys of the flats without prejudice to the rights of the respondent to claim liquidated damages under clause 13 of the Development Agreement and also demanded an unconditional guarantee for completion of the work including obtaining of the occupation certificate and building completion certificate. He submits that under the Development Agreement, it was the obligation of the claimant to obtain the building completion certificate and occupation certificate. The condition imposed by the respondent against the claimant to obtain an occupation certificate and building completion certificate and to furnish an unconditional guarantee for completion of the work was within the parameters of the provisions of the Development Agreement and in any event, was not unreasonable. The claimant however did not comply with any of those conditions.

It is submitted by the learned senior counsel that since the km ARBP512.16 claimant had not obtained the occupation certificate and building completion certificate, handing over keys of the flats to the respondent would not amount to compliance with the obligation of the claimant to handover possession of those flats without such occupation certificate and building completion certificate. The respondent even otherwise could not have taken possession of those flats. The respondent was thus deprived of possession of those flats in terms of the Development Agreement. The finding of the learned arbitrator in this regard is totally perverse. In support of the submission that it was the obligation of the claimant to obtain occupation and building completion certificates and without such certificates, the possession of flats could not have been handed over to the respondent lawfully, learned senior counsel placed reliance on the judgment of Supreme Court in case of Faqir Chand Gulati v/s. Uppal Agencies Private Limited and Another, (2008) 10 SCC 345 and in particular paragraph 36. It is submitted by the learned senior counsel that the claimant even did not comply with the interim award rendered by the learned arbitrator and only handed over the keys of those flats without obtaining an occupation certificate and building completion certificate.

Be that as it may, since the said prayer has not been considered by the learned arbitrator, this court cannot allow the said prayer under section 34 of the Arbitration Act. There is no merit in the submission of the learned senior counsel that the award is in breach of the principles of natural justice. The learned arbitrator has already made clear in paragraph (63) of the impugned award that the respondent could move the Municipal Authorities for the necessary completion certificate and thereafter claim compensation from the claimant. Till this matter was heard by this court, no such steps were taken by the respondent to obtain an occupation certificate or building completion certificate or to make additional claims alleged to have been incurred, if any, for applying for an occupation certificate or building completion certificate. In my view, considering the facts of this case, the learned arbitrator rightly rejected the claim for specific performance by applying section 14 of the Specific Relief Act, 1963. I do not find any infirmity with the impugned award rejecting the counterclaim made by the respondent.

References –

https://housing.com/news/real-estate-basics-completion-certificate/

https://www.nobroker.in/blog/completion-certificate/

https://www.commonfloor.com/guide/what-is-completion-certificate-and-why-it-is-necessary-52703

https://indiankanoon.org/docfragment/179516802/?big=0&formInput=building+completion+certificate

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