For a property that is for sale, a partial occupancy certificate (POC) is a crucial document. What does a proof of concept (POC) involve? What distinguishes it from a certificate of occupancy? For a full summary, continue reading.
Purchasing a property that is still under development is a wise choice. When the construction is finished, the property will be sold for a far higher price than it is now. Additionally, it offers you the satisfaction of residing in a brand-new house that has been built just for you. To make sure the construction is legal and compliant with all local laws, it is crucial to understand a few technical, legal, financial, and civic factors before making an investment in such a property.
What Partial Occupancy Certificate Means
Buyers are not permitted to inhabit a property until an Occupancy Certificate (OC) has been issued for the project. Thus, the possibility to obtain a Partial Occupancy Certificate for portions of large structures that are carried out in phases is given. For instance, when the first of five buildings in a project is finished, the builder may request a partial occupancy certificate.
Likewise, a partial occupancy certificate can be requested as soon as the other three structures are finished. The builder can file for an Occupancy Certificate (OC) once the fifth building is completed, signifying the end of the project.
Conditions of Partial Occupancy Certificate
When only a piece of a significant construction project is finished and authorized for habitation, a partial occupancy certificate is granted. However, in order to receive a partial occupancy certificate, a structure must meet specific requirements. These parameters are listed as follows:
- Lift services should be complete and functional
- Electrical Inspectorate certificates should have been issued
- Waste management and composting facilities should have been taken care of
- Rainwater harvesting facilities should be functional
- Fire department go-ahead is mandatory
- Appropriate arrangement for sewage treatment must be made
- Parking occupancy allowed only on the ground and first floor levels.
Validity of Partial Occupancy Certificate
Only when the authorities issue an occupancy certificate following the completion of the entire project does a partial occupancy certificate remain valid. The partial occupancy certificate is a temporary arrangement that permits occupancy of specific, habitable portions of the project. However, both the builder and the buyer benefit from this arrangement because otherwise, buyers would have to wait years to be able to use the property they have purchased. Additionally, if a builder has some of his work already occupied, he might expect more purchasers for the remaining portion of his project.
Things to Know When Investing in a Property with Partial Occupancy Certificate
While there are benefits to investing in a property that is still under construction, there are also risks involved that one should be aware of. There is no assurance that an occupancy certificate will be granted when the project is finished because a property that is still under construction can only receive a partial occupancy certificate, not an occupancy certificate. An occupancy certificate is only granted by the authorities if the construction complies with all established rules and standards. Therefore, an occupancy certificate is not guaranteed by a partial occupancy certificate. Regarding the partial occupancy certificate, several crucial considerations are:
Home loan: If you only have a partial occupancy certificate for a property, not all banks will provide you a home loan. It might be challenging to obtain a loan for a POC home unless your builder has a relationship with a specific bank.
Documents of ownership: Generally speaking, authorities will only issue documents proving your ownership of a property if it has an occupancy certificate. With only a partial occupancy certificate, many documents are not issued.
Monitoring project progress: Purchasers who have made an investment in or are now occupying a property for which a partial occupancy certificate has been granted have to closely monitor the project’s development. The last document needed to claim complete possession of your property is an occupancy certificate, which the builder must apply for as soon as the project is finished.
Conditions of possession: In certain situations, builders require that buyers move into their unusable dwellings. To dwell in a property with a partial occupancy certificate, a person must meet specific requirements. A buyer might contact the real estate agent if they discover that the requirements are not met.
Summing Up Partial Occupancy Certificate
Ever before multi-tower structures gained popularity, builders have frequently finished their projects in stages. In this context, the possibility of providing a partial occupancy certificate is particularly advantageous since it benefits both the builders and the buyers. By means of a partial occupancy certificate, a buyer of Tower I can now claim possession of their home as soon as it is finished and judged habitable by the authorities, when previously they would have had to wait for Tower V to be completed. On the other hand, the builder gains from faster and more sales on the current project.
It is important to remember that a partial occupancy certificate is not the last legal document that can be used to prove that you are the owner of a property. In actuality, it is merely a provisional certificate granted until the project is finished and the property is ready for an occupancy certificate.
