What is a Building Completion Certificate and its Importance?

  • February 21, 2024

A completion certificate is one of the most important documents you should obtain from the developer while purchasing a home. You might feel like skipping this certificate to avoid another long documentation process. But remember that this particular document legalises the property and helps you with reselling or mortgage purposes. Let us take you through the details of the completion certificate if you do not know about the importance of a completion certificate already.

What is Completion Certification in Real Estate?

A building completion certificate shows that the specific property’s construction has been completed according to the agreed-upon specifications and standards. This legal document assures the buyer that the property is ready for possession without any issues. This completion certificate validates the entire real estate project. Any developer or a standalone real estate homeowner needs this certificate for validation.

Construction certificate of completionA completion certificate is always awarded to housing projects after the concerned authorities physically visit the site. These people check all the paperwork to ensure that a housing project has followed all necessary building bylaws. The real estate developer is responsible for getting a housing project certificate of completion.

Several important standards for real estate are assessed before awarding a house completion certificate. This intimation under the completion certificate includes land identification of the building, Floor Space Index (FSI), basic structural design, structure quality, fractional ownership for real estate, number of floors, structure height, etc.

Project certificate of completionA completion certificate usually includes the following:

  • Information about the real estate property
  • All aspects of the particular building plan
  • Details about the real estate builder
  • Approved building or flat height

Why is the Completion Certificate so Important?

A completion certificate is important because it certifies that the construction is completed as per the approved plan and that there are no deviations. This building completion certificate holds importance for both real estate developers and homebuyers. 

  1. It ensures that the construction is done according to the rules and regulations in the country.
  2. This project certificate of completion is also necessary to obtain certain permissions, like property registration and water and electricity connection.
  3. The completion certificate contains all the information about the construction. This includes the respective developer’s name, location, and identification of the land. Other details include the building’s height and the quality of the building materials.
  4. The completion certificate indicates that the construction follows an authorised construction plan, including all the construction regulations. It may also be related to the height of the building, its distance from the road, and the distance from the neighbouring buildings.
  5. This building construction certificate is mandatory to apply for all the basic real estate amenities required within the property premises.
  6. The real estate developer can apply for an occupancy certificate only after obtaining a completion certificate.
  7. A completion certificate ensures the home buyer is not residing in an illegal property.
  8. A construction certificate of completion is the first step to getting an occupation certificate. It is illegal if someone is residing in a building without a real estate occupancy certificate. 
  9. The completion certificate for the building ensures a regular water and electricity supply.
  10. It helps claim all the real estate benefits of the property tax for a particular place. 
  11. The owners of residential buildings need a completion certificate to convert their water rates from non-domestic to domestic ones.

How to get this Completion Certification for Building?

A builder can apply for a project completion certificate for the building after the completion of the project in the local civic body like the Municipal Corporation or local development authority. These authorities will issue the completion certificate only after inspecting the construction.

The interested parties also need to provide some documents to get the construction completion certificate. These document requirements can differ from state to state depending on the real estate. Every state has different sets of requirements for a completion certificate in terms of real estate. Here is a general list of requirements for the completion certificate:

  1. Duly filled application form
  2. Building completion certificate by a licensed architect or engineer
  3. A copy of the specific building plan approval letter 
  4. Structural safety certificate from concerned technical personnel
  5. A copy of the property tax receipts
  6. NOC from the fire department
  7. NOC for lift installation
  8. Encumbrance certificate
  9. NOC for the sewage system
  10. NOC for the water supply plan
  11. Certificate for electric supply
  12. Affidavit for provisional completion certificate
  13. Any other document or declaration (if needed)

Building Completion Certificate Format

Here is a sample building completion certificate format for you to understand its content:

BUILDING COMPLETION CERTIFICATE_page-0001

Difference between a Completion Certificate and a Commencement Certificate

By now, you already know what a completion certificate is. A commencement certificate, on the other hand, is an official authorization granted by local authorities to begin the construction of a property by the developer. Here are some more differences:

 

Category

Completion Certificate

Commencement Certificate

Purpose Confirms that the project work has been completed according to specified standards and requirements. Acknowledges the initiation of the project and authorises construction activities to begin.
Issued By Issued by local authorities, architects, or project managers upon project completion. Issued by local municipal authorities or relevant governing bodies to grant permission for the commencement of construction.
Documentation Required Submission of completion drawings, such as as-built plans and other relevant documents, to prove the project’s successful conclusion. Submission of project plans, clearances, and other documents to outline the proposed construction and adherence to regulations.
Timeline Issued after the successful completion and inspection of the project. Issued before the start of any construction activities.
Legal Importance Often required for legal and regulatory purposes. Examples include occupancy permits and compliance verification. Necessary for legal compliance, which indicates that the construction can begin as per approved plans and regulations.
Validity No specific validity period. It is a one-time certificate issued upon project completion. Generally valid for a specific period. It is valid during the time when construction activities commence as per the approved plans. Renewal may be required if construction does not begin within the stipulated time frame.
Dependencies May depend on the fulfilment of all project requirements and adherence to building codes and regulations. Depends on obtaining the necessary clearances and approvals for the proposed construction.
Significance Marks the end of the construction phase. Ensures compliance with building standards. Authorises the initiation of construction to prove adherence to legal and regulatory requirements.
Usage Used for obtaining occupancy permits, proving compliance, and signalling project completion. Required to begin construction activities and fulfil legal obligations before initiating the project.

Difference between an Occupancy Certificate and a Completion Certificate

The authorities use An occupancy certificate to certify that the specific building is equipped with all civic amenities, including water, sanitation, and power supply. Here is how it differs from a completion certificate.

Inspection certificate

Criteria

Occupancy Certificate

Completion Certificate

Purpose Grants permission for the property to be occupied and used for its intended purpose. Confirms the completion of the construction project to ensure it meets all specified requirements.
Issued By Issued by local municipal authorities or building control agencies. Issued by local authorities, architects, or project managers upon the completion of the entire project.
Documentation Required Submission of inspection reports to prove compliance with safety and building standards. Submission of completion drawings, as-built plans, and other relevant documents to show the conclusion of the construction.
Timeline Issued after a thorough inspection once the construction is completed and deemed fit for occupancy. Issued after the successful completion and inspection of the entire project.
Legal Importance Essential for legal occupancy and use of the property. This indicates that it complies with safety and building standards. Important for regulatory compliance and to obtain occupancy permits. It also signifies adherence to building codes and regulations.
Validity Valid indefinitely unless some subsequent modifications or changes require a new inspection. No specific validity period. It is a one-time certificate issued upon project completion.
Dependencies Depends on the building that meets all safety and regulatory requirements. Depends on the fulfilment of all project requirements and adherence to building codes and regulations.
Significance Marks the property as legally habitable and safe for occupancy. Marks the end of the construction phase and is often required for legal and regulatory purposes.
Usage Necessary for occupying the premises legally and obtaining utility connections. Used for obtaining occupancy permits and signalling project completion.

What is a Provisional Completion Certificate?

A provisional competition certificate is a legal document that the developer or the homebuyer can use instead of the original construction project completion certificate.

Building completion certificateThe interested parties can also claim a provisional completion certificate after partial completion of the respective project. This situation applies if the builder wants to give possession of the building to the property holder. The provisional construction work completion certificate is valid for only six months. The developer must obtain a full completion certificate after this tenure is over.

Bottom Line

A completion certificate is compulsory for any real estate developer or a standalone house owner. This legal document is a marker that a particular building is legal and made as per the building standards. The completion certificate also ensures the availability of all kinds of basic amenities in the same building. Therefore, every buyer should claim a completion certificate for construction while buying a house.

A building completion certificate is the first step in obtaining an occupancy certificate to indicate the living standards in the building. So, the completion certificate also ensures that you are buying and living in a safe house. Do you want more help with the completion certificate details? Visit AsmitA India Realty for expert guidance and assistance with this important piece of documentation.

Frequently Asked Questions 

  • What happens if the home buyer forgets to get a completion certificate?

The authorities may issue a fine or force a home buyer to vacate the property if they do not possess a construction completion certificate. Moreover, it will be impossible to sell the home in the future without this legal document. 

  • Should I claim the construction certificate from my real estate developer?

Yes, you should claim the certificate of completion of construction from the developer. This document makes sure that the construction is legal. It also ensures that you will get all the basic amenities. Furthermore, the authorities may charge you with a penalty if you do not have this certificate. What’s worse is that you may also end up losing your property. 

  • What if the builder does not have a completion certificate?

The possession of the house by the owner will not be possible if the builder does not have a completion certificate. There are also chances of a delay in offering possession to the buyer if the builder is unable to obtain the certificate. It is mostly associated with the encroachment of norms or any other reason. 

  • What is the meaning of a building completion?

The process of building completion signifies that the property or building is completed by adhering to the approved plan. It is also according to the already set regulations of the local development authority. The process leads to the issuance of a completion certificate that further validates the real estate project.

  • What is the significance of the stage of completion?

The stage of completion is a formal indicator of progress in the construction of a building or flat. It specifically determines a work package or operation. It may also project the ratio of the delivered output to the planned total output. Hence, the stage of completion expresses the proportion of work performed that is part of an agreed total output in percentage form. 

By asmitarealty
By asmitarealty
By asmitarealty

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