We all know how important the Occupation Certificate (OC) is when purchasing a property. The OC confirms that the property has been built in accordance with plans approved by the authorities, meets all safety requirements, and is suitable for living in.

It is essentially confirming that:

  • The building is constructed according to the law and approved plans

  • The building has been constructed in compliance with the Building Code which is a set of laws related to how a building should be designed and built.

  • The building has all basic necessities such as water supply, electricity, drainage systems, etc.

  • No Objection Certificates (NOCs) have been obtained from the relevant authorities such as Fire Department (Fire NOC), Environment clearances, Tree Authority, etc.

A building not having an OC means it is potentially illegal and has not been designed as per the laws of the land. Why would one consider risking their life’s savings on a property lacking an Occupation Certificate when numerous safer alternatives exist?

Key RISKS of not having an OC

  1. Legal Hurdles: WIthout an OC, a building is considered illegal since it is not compliant with the local laws. The owners could be liable for heavy fines or penalties whenever the authorities come to know of this and act on it.

  2. Not getting home loans: Banks will refuse to provide home loans for a property without an OC and most Buyers may not have full funds ready for the purchase.

  3. Not getting insurance: Insurance companies may not provide coverage in such cases leaving the Buyer vulnerable in cases of damage or accidents.

  4. Risk of Eviction: In the absence of an Occupation Certificate (OC), the property might be considered unfit for habitation by municipal authorities and the occupants may face eviction, causing displacement and potentially triggering legal repercussions.

  5. Access to basic services: Without an OC, the authorities may not provide basic services such as water and electricity

  6. Difficulty in selling or renting: People today are aware of the importance of OC and hence owners of property without an OC may struggle to sell or rent their properties.


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