Why is a Completion Certificate important for Home Buyers?

October 18, 2022 . Home Buyer's Guide . 10 min read

When it comes to purchasing a home, there is a predetermined set of paperwork that must be completed. Paperwork is necessary to prove your ownership of the property when you resell it or when you apply for a mortgage.  However, there are a few pieces of paperwork that absolutely need to be in order before you can take the property’s ownership from the developer. A completion certificate is one such document.  

In this article, we will go over the meaning of a completion certificate as well as the significance of having one when buying a home. 

What is a Completion Certificate? 

A completion certificate is an official document attesting to the fact that a building was constructed in accordance with applicable laws and regulations. From the total height to the quality of the materials used, everything about the project should be included on the certificate of completion.  

In a nutshell, a completion certification serves as a guarantee that the structure in which you are going to reside has not deviated in any way from the established standards.  

Importance of Completion Certificate 

1. For developers 

A completion certificate is essential for developers to get legal approval for their development. Without this certificate, the construction is not considered to be within the bounds of the law, which might lead to complications in the future.  

The following is a list of some of the key reasons why it is so vital: 

• The name of the builder, the location and description of the property, the dimensions of the building, and the specifications of the building’s components are all included. 
• The building’s height, setback from the street, and distance from neighbouring buildings have all been determined to be in accordance with the authorised construction plan. 
• The developer cannot submit an application for an occupancy permit until they have received it. 
• This certification is necessary to provide access to essentials like running water, power, and sewage systems. Without the completion certificate, the builder cannot hand over the keys to the buyer. 

2. For home buyers 

It’s a common misunderstanding that only builders and developers need completion certificates. Buyers are required to have it, for the following reasons: 

• Possession of a completion certificate ensures that the buyer is not occupying an illegal structure. 

• The reliability of water and power supply is ensured. 
• You can’t take advantage of the property tax breaks until you have your certificate of completion. 
• A completion certificate is needed to switch from commercial to residential water rates for finished constructions. 
• The authorities may issue a fine or force a buyer to vacate the property if they do not possess a completion certificate. 
• Without a completion certificate, it will be impossible to sell the home in the future. 

How to get a Completion Certificate? 

After construction gets completed, the developer might get a completion certificate. It is the responsibility of the developers to submit an application to the relevant municipal body. The authorities won’t provide a certificate of completion until they’ve inspected the construction. 

The requirements for filing for it are not uniform throughout the country. Different laws apply in each state.  

All of the required paperwork is as follows: 

1. The application form that has been completed 

2. The building can’t be considered complete unless it’s been signed off on by either an architect or a registered engineer. 

3. Document certifying construction plan approval (copy) 

4. Property tax receipts 

5. Certificate of structural integrity or letter from responsible technical staff (copy) 

6. A letter of permission, if applicable, is necessary for the implementation of a lift. 

7. Approval for the scheme of water supply  

8. NOC for the sanitation system 

9. Electricity supply authorisation 

10. A provisional completion certificate declaration  

11. If applicable, any further documents or declarations 

Home buyers can get a copy of the certificate from the builder once the work has been inspected and authorised. 

How long does it take to get a Completion Certificate? 

If the application is complete, the local authority will schedule an inspection with the developer. The construction will be inspected by a team from the Municipal Corporation at predetermined intervals. After all compliance requirements have been met, they will issue it, usually within three to four weeks. 

If the investigation team finds a major violation of the regulations, they could send out a letter with orders for the demolition of the structure. When minor violations occur, the team administers the appropriate punishment.  

Conclusion 

A completion certificate is proof that a structure complies with all local, state, and national statutes and is constructed to standard. It also guarantees that the facility’s essential services will be accessible to all tenants. As a result, if you’re purchasing a brand-new home from a developer or owner, don’t forget to ask for and get a completion certificate.  

Getting an occupancy permit, which attests to the building’s suitability as a place to live, requires the certificate as a prerequisite. Therefore, having a completion certificate means you’re purchasing and living in a secure dwelling. 

Now that you are aware of the completion certification, it is possible that you may want financial aid in order to pay the first deposit on your new house. Simply apply for a loan on HomeCapital’s website for up to 50% of your down payment. There is no interest payable with down payment loans from HomeCapital, and the application process is quick and easy to complete online.