Having an OC from the developer offers you a host of benefits besides making you the legal owner of your property. Besides, it also works to your advantage if you plan to sell your home in future.
“A buyer must ideally get an OC from the concerned builder once construction is complete and ready to be occupied,”. “Given that during property registration OC is not a mandatory document and has no linkage to the process, it ironically prompts buyers to consider OC to be of less significance. However, without an OC, the owners may sometimes be deprived of essential civic amenities like electricity and water. In worst cases, one can be evicted from the property, especially if the project has seriously faulted on the environmental rules. Hence, ideally buyers must ensure that builders give them the OC before they occupy the house. Most importantly, OC is a mandatory document for those buyers applying for a home loan. Alternately, those selling their ready property without an OC can’t proceed if their prospective buyer is applying for a home loan as banks require this document,” he adds.
It is pertinent to note that without OC, the building is unsafe for occupation. In the event of an accident, the occupants can hold no one liable and would also not be eligible for any insurance claims.
OC for home loan and tax benefits
Financial advantage of possessing an OC:
- The OC is a necessary document to avail the most important income tax benefit, namely home loan interest and principal amount deductions from your income;
- The OC is required to execute the ‘conveyance deed’ from the builder to the society or apartment association, without which the ownership rights continue to be with the builder;
- The OC is an important document to avail a home loan or any other loans against property. If you have the OC, other documents such as the Sanction Plan, Commencement Certificate, etc can be waived off by the lender;
- If you wish to sell the property, you will not be able to do so without a valid OC as prospective buyers consider OC as one of the important documents in any property deal.