What is Commencement Certificate in Real Estate

A commencement certificate is a document issued through local Municipal Corporation, providing the permit to a developer who wants to begin a construction project. This certificate is a document which proves the legality of a real estate project. It is granted by the Municipal Authority after the developer has received approvals for the project and the layout of the structure. The commencement certificate is only provided once the developer meets all the legal requirements.

Who can apply for the Commencement Certificate?

The developer or builder who holds sanction of the desired property has the right to claim the Certificate of Commencement.

Required Documents

The developer is required to submit the application of Commencement Certificate along with the following documents:

• Photographs
• Latest receipt of the tax paid
• All the property related documents
• Letter of NOC from the respective government departments.

Criteria for issuing the Commencement Certificate

The local Municipal Authority issues the Certificate of Commencement following a particular criterion:

• The developer or builder must submit the project’s plan to the Municipal Authority. This is because the Municipal officials need to carry out an inspection of the property.
• This step involves submitting the NOC (No Objection Certificate) received from various government offices such as water, fire, electricity, sanitation to its local Municipal Authority. Along with the NOC, the project plan needs to be submitted as well.
• The Commencement Certificate is usually issued in 2 stages. The first stage is when the making work of the base area is completed and the 2nd is when the superstructure is completed.

Procedure for issuing the Commencement Certificate

The procedure & planning  for issuing the Commencement Certificate varies from one Municipality to other, however the generally followed procedure are as follows:

• The local Municipal authority will get an application alongside a plan which should be drawn on the scale of 1:100. This should reflect the land’s actual dimension, schedule, size of the concerned building and its position as well over the plot. All of this must be accompanied with the important required documents.
• Once the local authority receives the application of Commencement Certificate, it immediately issues a receipt of acknowledgment.
• All the documents along with the application are verified to ensure if the concerned property adheres to laws & regulations.
• Once the local authority is done with the verification process, the Certificate is granted to the developer.

If the building plan submitted by the developer is verified to be in line with local laws & plot records, the applicants are asked to pay the prescribed fee. The Commencement Certificate is provided by the local Municipal Authority once the candidate pays the fees.

Significance of Commencement Certificate

While buying a home, it’s mandatory to verify all the property related documents. Therefore, following is a list of important factors affiliated with the Commencement Certificate:

• The certificate ensures that the said property has a clear title, no dues and no due clearances pending from the various government offices.
• While purchasing a residential property, in case the Certification of Commencement is not provided, then it signifies that the possession could be illegal or under any disagreement.
• The Certificate has a list of units that an individual might be willing to purchase. In case the floor or the unit isn’t mentioned under this certificate, then the specific unit is considered to be under dispute or illegal.
• The Certificate of Commencement can act as a potential savior from legal issues as the local municipality holds the power to penalize the owner or the resident of any illegal structure/property.

Difference between Occupancy Certificate and Commencement Certificate

Commencement Certificate: This certificate is a document issued by the local Municipal Corporation, providing the permit to a developer who wants to begin a construction project. This certificate is a document which proves the legality of a real estate project. 

Occupancy Certificate: An occupancy certificate is provided by the local administration or the governing civic body for making the property owner eligible for getting amenities provided by the local municipality such as water, electricity, road, sanitation, and sewage.

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