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Commencement Certificate

Home Home Loan Commencement Certificate
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Updated: 28-11-2024 09:58:04 AM
Commencement certificate is a document that permits a real estate developer/builder to start the construction of his/her project. It is usually issued by the local municipal authority only after the developer/builder fulfills the legal requirements and obtains the necessary sanctions for the project’s plan.

Why commencement certificate is important?

  • Until a real estate developer or builder receives the commencement certificate, he/she is not authorized to start construction
  • Buying a property that has commencement certificate ensures that it is not illegal or under any dispute. It also ensures that the concerned property has all necessary clearances and clear title or dues.
  • Buying a property that does not have a commencement certificate may put you under the risk of being penalized for owning an illegal property. This also affects your legal title to the property.
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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 commencement certificate.

Read: What is Possession Certificate

What are the documents required to apply for commencement certificate?

At the time of applying for the certificate of commencement, the builder or real estate developer might be required to submit the following documents:

  • Project plan
  • Latest tax payment receipts
  • Photographs of the site or construction
  • No Objection Certificates (NOCs) for water, electricity, sewage, etc.
  • Other related property documents

Read Also: Completion certificate of the project

How can a real estate developer/builder get a commencement certificate?

Before starting the construction of a project, the real estate developer/builder must get a commencement certificate from the local authorities. Even as per the RERA’s new guidelines, commencement certificate is a mandatory document for a real estate project to be RERA-approved.

The commencement certificate is usually issued in two stages – for the construction of the plinth area and then, for the construction of the superstructure. To obtain the certificate, a developer must first submit the project plan and the required NOCs along with other required documents to the concerned authority. Then the authority will conduct all preliminary checks before giving its approval for the project to start.

The process to issue a commencement certificate for a project may vary from local authority to another. However, it generally goes as below:

  • The local authority receives the application for commencement certificate along with a project plan and issues an acknowledgement receipt
  • The concerned authority then verifies the documents and details mentioned in the application form. They will also check if the proposed building follows to the applicable bye-laws and regulations.
  • After thorough verification and other checks, the authority may grant or reject the requires for the commencement certificate
  • If the response is positive, the local authority will ask for the prescribed nominal fees, which may vary from one state to another
  • And once they receive the fee, they will issue the commencement certificate

 

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