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Lesson A1·08 · Approvals overview

RERA, CC, OC, sanction — what each paper actually proves

5 min read · 4 approvals · 1 timeline

The trap, first

A family takes possession of their "ready" flat. Housewarming done, EMIs running. Then the small facts surface: the electricity is a temporary builder connection. The water too. The society can't get registered. Why? The building never received its Occupancy Certificate — the builder handed over homes the municipality never certified as fit to occupy.

Every approval in a property's life exists to answer one specific question. Buyers get hurt when they let one paper answer a question it was never designed for — like letting "possession offered" stand in for "legal to occupy." Here's the full map: which paper, which question, which moment to demand it.

The four approvals — in the order a project earns them

ApprovalWhat it provesWhen you demand it
Layout / plan sanctionThe authority approved what can be built here — the drawings, floors, setbacks, coverage. The reference against which everything else is checked.Before booking. Especially for plots and builder floors — count your floor on it (Lesson A1·06).
Commencement Certificate (CC)Construction was legally allowed to start. Work begun without a CC is unauthorised from brick one.Before booking any under-construction unit.
RERA registrationThe project may legally be sold: money goes to a 70% escrow, the completion date is filed and binding, delay penalties apply, carpet-area pricing is enforced.Before paying a rupee. Verify the number yourself on the state portal — never from the brochure.
Occupancy Certificate (OC)The finished building matches the sanctioned plans and is fit and legal to occupy — the paper that makes "ready" true. (Its sibling, the Completion Certificate, certifies construction finished per plan; the OC certifies you may live in it.)Before taking possession of anything "ready" — and before buying any resale flat in a newer building.

Why "no OC" is not a technicality

Without an OC: permanent water, sewer and electricity connections can be refused; the residents' society may struggle to form and register; some banks resist lending against units in the building, which quietly shrinks your future resale market; and in the worst cases, occupation itself is unauthorised — municipalities have penalised and even ordered evacuation of OC-less buildings. The builder's incentive is to hand over fast and let the OC "come later." Later has a habit of never arriving, because the OC is often missing for a reason — a deviation from the sanctioned plan the municipality won't certify.

The analyst's cut

One decision rule. Match the paper to the stage: booking under-construction → sanction + CC + RERA number verified on the portal. Taking possession or buying "ready" → OC, non-negotiable. Any seller answer of the form "aa jayega, process mein hai" ("it's coming, it's in process") converts the missing paper from a formality into the single biggest risk in the deal — because you're being asked to pay full price for a certainty the municipality hasn't granted.

Test yourself — the final 5 of Module A1

1. The document that makes a building legally fit to live in is:

The Commencement Certificate
The Occupancy Certificate
The RERA registration

The OC certifies the finished building matches sanctioned plans and is fit for occupation. Everything before it governs building and selling — only the OC governs living.

2. The Commencement Certificate proves:

Construction was legally allowed to begin
The project finished on time
The buyer's loan is approved

No CC = unauthorised from the first brick, regardless of how good the towers look later.

3. The correct way to verify a project's RERA registration is:

The number printed in the brochure
The salesperson's confirmation on WhatsApp
Searching the number yourself on the state RERA portal

Brochures have carried lapsed, wrong, and borrowed numbers. The portal shows the registration live — with the filed completion date and any complaints attached.

4. Living in a building without an OC can mean:

Nothing — it's a formality
Temporary utility connections, society registration trouble, shrunken resale market, and in extreme cases penalties on occupation itself
Only a small one-time fine

The OC is frequently missing because of a plan deviation the municipality won't certify — which is exactly why "aa jayega" so often never arrives.

5. You're buying a "ready-to-move" flat. The builder offers possession now, OC "in process, 2–3 months." The analyst's move:

Take possession — the OC is on its way
Treat the missing OC as the deal's biggest open risk: hold back, or contract payment/possession to the OC actually arriving
Take possession but ask for a discount on parking

"In process" prices a certainty that doesn't exist yet. If the OC truly is routine, the builder can wait for it — or contractually bind possession to it. Resistance to either tells you what "in process" means.

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