What Is A Project Completion Certificate: Its Importance, Contents And Documents Required

Home Loan

A Project Completion Certificate is provided by the concerned authority after the construction of a building or property is completed according to an approved plan.  It is one of the most essential and important documents for a property builder or developer. This certificate is the key to legalising your property. It will also help to facilitate mortgaging or reselling it down the line. 

Read on to know the importance of a project completion certificate, what it contains, the documents required and the time taken to get a project completion certificate.

What is a Project Completion Certificate?

A completion certificate is a legal instrument provided to the builder post completion of a housing project. The local municipal corporation or other local civic body is responsible for checking if construction methods were followed correctly, and complying with the corporation’s regulations.

Significance of Project Completion Certificate

A house completion certificate is one of the important documents you need to check from a developer if you are planning to purchase a home. This document is highly important both for the developer and the home buyers. Here’s all about the importance of a completion certificate:

• This document contains all intricate details regarding mentioned properties, such as identification and location of land, information about the developer, the height of building and kind of materials used for construction. 
• In many states, this certificate is mandatory to get electricity and water supply. 
• The document also confirms that construction has been done following all rules and regulations mentioned by concerned development authorities. These may include pointers like distance from notable roads, the distance between neighbouring buildings, etc. 
• You should not purchase a home without a Completion Certificate. Such properties might be illegal and can lead to eviction and other legal issues in the future. 
• It is an essential document if you are going to sell your property. 
• You can avail the benefits of property tax on your home if only your house has a completion certificate. 
• It makes sure that the buyer is not moving into an illegal property.
• It helps to obtain the Occupancy Certificate which is equally essential to get the legal status of the residency. 

Also Read: Minimum Cibil Score For Home Loan In 2022

Particulars of Completion certificate 

You can find all details concerning the land or building in a Completion Certificate. 

• Details regarding land 
• Building plan details
• Its distance from other buildings in the neighbourhood 
• Information about the builder 

Documents required for Completion Certificate

If you, as a builder, are applying for the certificate of completion of construction, you need to keep these documents ready:

• Copy of the building plan approval
• Building completion certificate given by the architect
• Copy of the property tax receipts
• Application form
• NOC for sewage, from the fire department, for water supply, for lift installation
• Certificate for electricity connection
• Other documents if applicable 

After submission and verification of all details submitted, an inspection will be scheduled by the corporation or local authority. Suppose it is declared that the building or the project is built in accordance with the local authority’s rules and regulations. In that case, the certificate will be issued, signed, and stamped by the responsible authority. 

Time Taken to Get a Project Completion Certificate

If the project has been built complying with all regulations instructed by the authority, then after inspection, the certificate is issued. It takes around 3 to 4 weeks for the whole process to take place.

On the other hand, if any discrepancy is found, the authority might impose a penalty, and in case of a major violation of rules, the project can be demolished. 

Provisional Completion Certificate

A provisional certificate is basically a temporary certificate. At times it might happen that the majority of a project is complete, but the builder needs to offer occupancy to buyers. In such cases, they may apply for a provisional completion certificate.  However, the validity of this certificate is only six months. After which, the builder needs to apply for the complete certificate post-construction. 

Also Read: What Are The Types Of Home Loan Options Available In India?

Format of a Completion Certificate 

A building completion certificate format usually includes the following details:

• Date of completion
• Project name
• Contractor information such as name, address, phone number, etc. 
• Details regarding the project like work duration, budget, order number, etc. 
• Authorised signatory 
• Added details as requested by the client

Final Word

It is illegal to reside in a property without a Project Completion Certificate, but there can be exceptions where the authority may allow it. For example, if a project has been on hold for some reason or it will be completed in a short time, the local authority may provide the certificate. On the other hand, if a builder does not provide the certificate, the owner can approach the local authority for the same. 

FAQs on Project Completion Certificate

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.