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What is a Commencement Certificate?

A Commencement Certificate is a document from the local municipal authority that proves the legitimacy of a real estate project and permits the developer to begin the construction of the project.

A Commencement Certificate is an important document that a developer needs to procure from the authority to be able to commence the construction of a property. When a developer submits his plan, the local authorities give their consent subject to copious no objection certificates, sanctions and clearances pertaining to the project, which the developer is expected to obtain from variegated authorities. And therefore, it is considered an imperative document to ensure that you are investing into a property that has duly complied with all the requirements.

How can a developer obtain the commencement certificate?

Here are the things that a local authority takes into consideration prior to the issuance of commencement certificate:

  1. The developer must submit the project plan to the concerned department so that the inspection of the land or some of the primary checks could be initiated.
  2. The Builder must also submit with the authorities a No Objection Certificate obtained from various Government departments, including fire, water, sanitation and electricity.

After the submission of all the relevant documents, the developer receives the certificate post inspection by the town planning and the engineering departments.

Difference between a Commencement Certificate and an Occupancy Certificate

It is often seen that the homebuyers, especially the novice ones, repeatedly mistake the commencement certificate to be the same as the occupancy certificate. However, there is a difference between the two. A commencement certificate is a legal document that is essential to initiate the construction of a housing project. Whereas, an occupancy certificate is a document that makes the owner eligible to enjoy the civic amenities such as road, water, sanitation, and electricity.

The significance of Commencement Certificate for the homebuyers

It is always considered necessary to cross-examine the entire documents before you finalise a deal for the purchase/sale of a property. A failure to do so may later cost you a fortune. Listed below are some of the reasons why procuring the commencement certificate from the developer is a must:

  1. The absence of commencement certificate while buying residential premises is indicative of an illegal property or a disputed land.
  2. The certificate ensures that you are a secured property owner with clear title, dues and clearances.
  3. Listing of the residentiary unit in the commencement certificate is a must to ensure that you are buying a legal housing unit.
  4. The concerned authorities have the rights to penalise a person who is a resident or the owner of an illegal housing project. A commencement certificate, therefore, saves you from the possible legal consequences in future.
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