A Commencement Certificate is a document that permits a real estate developer/builder to start the construction of their project. It is issued by the local municipal authority only after the developer/builder fulfils the legal requirements.
Importance of a Commencement Certificate
- Without receiving the commencement certificate, a real estate developer or builder is not authorized to start the construction of the property.
- When you plan to purchase a residential property, the absence of the commencement certificate indicates that the property is illegal, or under dispute.
- The certificate ensures that the concerned property has a clear title, dues, and approved clearances by several government offices.
- Buying a property that does not have a commencement certificate may put you at the risk of being penalized for owning an illegal property. This also affects your legal title to the property.
Who can apply for the Commencement Certificate?
A real estate developer or builder who has the sanction plan of the concerned property can apply for a commencement certificate.
- Project plan
- Latest tax payment receipts
- Photographs of the site or construction
- No Objection Certificates (NOCs) for water, electricity, sewage, etc
- Concerned property documents
Steps to obtain a Commencement Certificate
- Local authorities will issue the Commencement Certificate by considering the below criteria:
- The builder or developer needs to submit the project plan and (NOC) i.e. No Objection Certificates received from several government offices like fire, sanitation, water, and electricity department to the concerned local authority. After the submission of these documents, the authority will conduct the preliminary checks before giving its approval for the project to start.
- The certificate is issued in two stages i.e. first when the construction is up to the plinth area (where the external dimension of the property is considered), and the second is for constructing the superstructure.
Procedures for issuing the Commencement Certificate
- The procedure for issuing the commencement certificate can vary between the local authorities. However, the general procedure is as follows:
- The local authority receives the application for a commencement certificate along with a project plan. After that, they issue an acknowledgment receipt.
- Post that, the concerned authority will verify the documents and details mentioned in the application form. They will also check if the proposed building follows the applicable by-laws and regulations.
- After the verification of the details, the concerned authority may reject or grant the Commencement Certificate.
- If the local authority finds the submitted building plan is under local regulations and plot records, applicants will be asked to remit the prescribed fees.
- The concerned local authority will then issue the Commencement Certificate once the applicant remits the applicable fees.