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Riya Tayal | 13 May 2022

Building Completion Certificate- Meaning and Its Significance in Real Estate

Building Completion Certificate- Meaning and Its Significance in Real Estate

Buying a home at the right price is the dream of every prospective home buyer. But do you know that there are some essential documents that you need to obtain from the developer while buying a house? If not, then we’re here to tell you! A Building Completion Certificate is one of the most important documents a home buyer must obtain while buying a house. Most people might feel like skipping a Completion Certificate to keep the long documentation process short but before you think of doing so, always remember that this document legalises real estate. Also, this document is important for the mortgage and reselling purposes. 

To know more about Completion Certificate and its importance, we are taking you through all the details about this crucial legal document. 

Meaning of Completion Certificate

A Completion Certificate is a legal real estate document given by the concerned authority. This document signifies that any property or building is constructed by adhering to the approved plan and already set regulations of the local development authority. In short, the Completion Certificate validates the real estate project. Any owner or developer of a stand-alone building needs a Completion Certificate in order to ensure the legality of their project. CC is the first certificate after completing real estate construction. It only approves that the building has properly followed the building plan and the master plan of the city. 

The Building Completion Certificate covers all the essential information in relation to the project, involving building materials, building plan, and building height. In this way, the Completion Certificate showcases that a developer has not violated any rules and ensures the quality of the project. Moreover, CC is needed to obtain utility services like electricity and water. 

A developer might also claim a provisional CC after partial completion of the project in case the builder is willing to give possession of the building to the property holder. The provisional Completion Certificate is valid only for 6 months. Once this period gets over, the developer must obtain a full Completion Certificate. 

Significance of Completion Certificate for Developers

A CC is of sheer importance for the developer in order to legalise their real estate construction. Without CC, the structure is not considered legal, which might also invite difficulties later on. Here are a few reasons behind the significance of this certificate:

1. CC contains all the information of the construction, involving the name of the developer, location and identification of the land, the height of the building, and quality of building materials. 

2. CC is compulsory to apply for water and electricity supply.

3. The developer can apply for an Occupancy Certificate only after obtaining a Completion Certificate. 

4. This certificate indicates that the construction follows an authorised construction plan and all the construction rules and regulations like the height of the building, its distance from the road, and neighbouring buildings. 

Significance of Completion Certificate for Home Buyers

Often, it is conceived that CC is only for developers or builders. Homebuyers also tend to ignore the fact of whether the developer or builder has the CC or not. However, this certificate is important for home buyers too because of the following reasons:

1. CC makes sure the home buyer is not residing in illegal real estate.

2. This certificate is the first step to getting an Occupancy Certificate.

3. It ensures a regular supply of electricity and water. 

4. You can claim the property tax benefits only after getting a Building Completion Certificate.

5. CC is required for residential buildings to convert water rates from non-domestic to domestic ones.

6. Without a CC, a home buyer can face penalties and even eviction from the property by the authorities. 

7. Without CC, it will be challenging to find a buyer if you wish to sell the property in the future. 

Details Included in Completion Certificate

The details listed in CC involve the following:

  • The name of the developer

  • The information about the locality

  • The identification details of the land

  • The height of the building

  • The details about the approved building plan

  • Other information as per the local building standards like the distance of the building from the road

Documents Required for a Completion Certificate

The documents needed for applying for a CC vary from one state to another. Every state in India has different sets of requirements. Here is the general list of documents required:

1. Duly filled application form

2. Building CC by an engineer or licensed architect

3. Structural safety certificate or letter from concerned technical personnel

4. Copy of property tax receipts

5. Copy of building plan approval letter

6. NOC for lift installation, if applicable

7. NOC from the fire department, if applicable

8. NOC for the sewage system

9. NOC for the water supply plan

10. Certificate for electricity supply

11. If you are applying for a provisional CC, an Affidavit is required

12. Any other documents or declarations, if applicable

To conclude, when buying a home from a developer, it is vital to ask for the CC. A CC makes real estate legal in the eyes of the authorities. It also ensures a smooth supply of water and electricity. Without a CC, the builder cannot apply for and offer you an Occupancy Certificate. And, moving into a property without an Occupancy Certificate is illegal. In such a case, you might face a penalty or eviction notice from the local authorities. 

Furthermore, you’ll need a CC to claim income tax benefits on the home loan. It will also be required while reselling your house. Therefore, if the builder or property owner cannot provide you with a Building Completion Certificate, investing in such a property can be risky. 

Also Read: What is an Occupancy Certificate?


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