Out of all the documents required for a property purchase, the commencement certificate is the most important one because it states the legality of the project.

What is a commencement certificate?

Commencement certificate is an important document provided by the local municipal authority to a developer so that the developer will be able to commence the construction of the property. This certificate is usually granted only after the developer has met all the legal requirements and had obtained the relevant sanctions for the building’s plan.

It is legal permission provided to the developer to commence the construction after it is assured that the developer has received all clearances, approvals, licenses, and sanctions of a project. The builder, after attaining all the permissions should inform the authority about the intention to start work on the site. And therefore, it is considered as an obligatory document to assure that you are investing in a property that has appropriately accumulated with all the requirements.

Procedure to obtain a commencement certificate for the developer/builder:

The developer should submit the project plan to the respective department as the legal authorities will inspect the land and do the necessary checks required.

The developer should also submit the NOC (Non-Objection Certificate) received from various government departments including water, fire, and sanitation and electricity

The CC (Commencement Certificate) should be obtained in two phases. In the first phase, the developer should wait until the officials will inspect the engineering departments and town planning to provide this certificate.

After receiving the CC for the first phase, the Developers should now build the basic structure of the housing project.

The authority will issue this legal document only after finalizing the first and second stage after inspecting the housing structure within the premises.

Importance of commencement certificate:

The absence of one legal document can cost you a huge loss before finalizing a deal and that’s why the home buyers should be aware enough and must cross-check if all the documents related to the property. If the developer is unable to provide the commencement certificate then the home buyer should run a risk of being an owner for an illegal property. This not only affects the legal title to the property but the home buyer should pay fines according to the government rules for buying an illegal property. The commencement certificate will always save you from possible legal troubles.

The absence of CC indicates that you are buying an illegal property or a disputed land.

This certificate assures that you are a secured property owner with dues, titles, and Ask the developer to show you the CC issued by local government authority.

If the developer is unable to show you the CC then one must cancel the deal immediately.

Difference between commencement certificate and occupancy certificate:

As explained above, the commencement certificate is a legal assurance provided by the local government authority to the developer in order to begin the project according to the plan that had been approved. Occupancy certificate assures the property owner eligible for all amenities that are issued by the local government such as road, water, electricity, sanitation, and sewage.

Difference between commencement and Encumbrance Certificate:

The Encumbrance Certificate shows the status of the property. But before the encumbrance certificate is provided to the property it should have a CC because it is the first legal step provided by local bodies to begin the construction of the housing project under the RERA Act.

Difference between commencement and completion certificate:

The CC legalizes the housing project before the construction had begun but the completion certificate is a legal proof that a particular project is complete and the structure of living in that project does not violate any rules laid by the local body for the construction of residential housing projects anywhere in India.

Some general points:

To establish a correct construction, first, the developer requires to receive the commencement certificate from the respective local authorities of that appropriate state.

As per Section 4(2) (c) of the RERA Act, 2016, while recording an application for the certification of the housing project, the developer shall encompass a verified copy of the commencement and approval certificate from the responsible authority concerned in accordance with the laws suitable for the real estate project.

After the developer has presented his plan for the housing project to the local body, the municipal authority will commence conveying some preliminary checks to verify whether it is proper to concede such a certificate.