Why Check the Completion Certificate Before Buying a Property?

Real estate transactions are complex and involve a number of legal intricacies and documents, like a certificate of completion. A completion certificate, or CC, is among the most crucial documents you must obtain from the developer while buying a house. This document is issued by the local government in order to certify that a residential building has been constructed according to the relevant building regulations and approved layout.

What Is a Completion Certificate?

A Completion Certificate (CC) is a legal document issued by the local municipal authority or development authority. It serves as a confirmation that a construction project has been completed as per the relevant safety standards, local regulations and approved building plans. It also indicates that the construction work has been satisfactory, and the property is ready for use. Basically, the CC is a stamp of approval that states that the building project effectively complies with all the relevant norms and is ready for further clearances like utility connections.

Why Is a Completion Certificate Important for Homebuyers?

• Quality Assurance: Buying a house is a huge investment. It is imperative that home buyers are assured of the quality of their investment. The Completion Certificate can provide them with the much-needed assurance that the construction work has been completed according to the approved specifications and plans. With this assurance, you can make informed decisions regarding property investment and ensure that you are getting the best value for your money. 
• Legal Protection: A Completion Certificate shall provide homebuyers with legal assurance that the property has been constructed in compliance with applicable regulations and building codes. It is proof of the legality of the property and its adherence to the relevant safety standards. 
• Access to Essential Services: Properties that do not have a CC are likely to face issues in obtaining utility connections like gas, electricity and water. Hence, you must obtain this certificate to make sure that you are able to access essential services without any issues.    
• Protection Against Fraud: By checking the Completion Certificate beforehand, you can avoid falling victim to any unauthorised or fraudulent activities. The CC can act as a safeguard against investing in properties that do not meet the necessary safety standards or are illegally constructed. 
• Resale Value: Properties that have a valid building Completion Certificate tend to enjoy higher resale values in comparison to those without such a certificate. Prospective buyers are more likely to want to invest in properties that have been officially certified as completed and are compliant with necessary safety standards and regulations.

How Is a Completion Certificate Different from an Occupancy Certificate?

It is common for first-time homebuyers to get confused between the Completion Certificate (CC) and the Occupancy Certificate (OC). While both are important documents associated with property transactions, they tend to serve distinctive purposes:

Completion Certificate (CC):

• Issued upon completion of construction.
• Indicates that the property is ready for occupancy or use.
• Confirms that the construction project has been completed in compliance with safety standards and building codes.
• Is generally needed for obtaining utility connections and legalising the property.

Occupancy Certificate (OC):

• Issued after the Completion Certificate.
• Confirms that the property is safe to be occupied.
• Specifies the maximum number of people allowed to occupy the premises.
• It is likely to be needed for obtaining home loans and insurance.

Obtaining a Completion Certificate would provide you with the peace of mind that comes with knowing that the property has been properly inspected and certified by the local authorities. You shall be able to move to your new home with confidence and will not have to worry about dealing with potential legal or safety issues down the line.