Everything You Need to Know about Certificate of Commencement

If you are thinking of developing land, you must have wondered what the exact commencement certificate means is. It is a document that attests to the legitimacy of a real estate project. It is issued by the local municipal authorities, allowing the developer to start the project. The authorities will only provide the commencement certificate if the developers have complied with all legal requirements. Additionally, they must get all the required approvals for the building's design and layout. In this article, you will get all the information regarding commencement certificates, like how to check commencement certificates online. 

What is a Commencement Certificate for the building?

According to the RERA Act, a commencement certificate is granted. It permits the developer or builder to begin the construction process. A commencement certificate must be obtained for a project to be considered approved.

Before beginning construction on a new project or structure, a developer must get a commencement certificate. The local administration gives the certificate. A project proposal must be submitted by developers as well. The local authorities will conduct several preliminary inspections before granting a commencement certificate.

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We hope you are now aware of what is commencement certificate. Both homeowners and developers need the Commencement Certificate. It ensures that property owners who understand the value of a commencement certificate won't be taken advantage of by developers. Every homeowner should know that a developer must get a commencement certificate before beginning construction on a real estate project.

As a result, buyers or investors should be wary of the project if a developer lacks the commencement certificate. Investors and real estate buyers should both review the developer's start certificate. The floor they intend to buy must be mentioned.

How to Obtain the Commencement Certificate from the Local Government

It's easy to get the Commencement Certificate from the Local Government. Here’s how:

Step 1: This is for the builder or developer to submit the project plan and NOC (No Objection Certificate). Several government agencies, including those in charge of the fire, sanitization, water, and electricity, must provide you with their NOC.

Step 2: The process of obtaining a commencement certificate involves two steps. When construction reaches the plinth area, that is the first milestone, and when the superstructure is finished is the second.

Documents required for Commencement Certificate

The following documentation must accompany the occupancy application form:

• A form of application
• A replica of the authorised plans
• Pictures of the structures
• An expert structural engineer's certificate attests to the structure's stability is necessary.
• A statement from the landowner or developer stating that the tree planting conforms with rules.
• A licensed structural engineer issues a starting certificate.

What are the Process and Procedures for the Issuance of a Certificate of Commencement

Depending on the local authorities, different processes and plans are used to provide the certificate of commencement. 

1- The certificate of commencement application will be sent to the neighbourhood municipal authority with a 1:100 scale plan. This design displays the size of the planned structure as well as the proportions of the land. It also shows the building's location on the property, the land schedules, and the relevant paperwork.

2- The local administration will send an acknowledgement receipt. The commencement certificate is granted after receipt of the application.

3- Next, the application and supporting materials will be examined. To determine if the proposed building conforms with applicable laws and regulations in the area.

4- The relevant authority may grant or refuse the commencement certificate upon the completion of the verification.

5- It will be necessary for the applicants to pay the required fees. If the neighbourhood authorities find that the submitted building design corresponds with neighbourhood laws and plot records, it must be paid.

6- The proper authorities will provide the commencement certificate if the fees have been paid.

Commencement Certificate for Building Format

According to the diploma format, you must provide the CIN and GLN of your company.

It also has to contain your company's address and email, per the start certificate format.

Lastly, the director's digital signature is necessary for line with the beginning certificate's structure. If you’re in the state of Maharashtra, you can check the government-approved commencement certificate format by clicking here - https://maharera.mahaonline.gov.in/Upload/PDF/Circular%2032.pdf 

Difference between Certificate of Incorporation & Certificate of Commencement

A certificate of commencement of business is a record that details the share capital that the company's subscribers agreed to pay at the time of the company's establishment. The capacity to get a Certificate of Incorporation is independent of the availability of a Certificate of Incorporation. This is the basic difference between a certificate of incorporation and a certificate of commencement.

How to Check a Commencement Certificate Online?

• Visit the official website as per the state you’re living in.
• Depending on your demands, scroll down and choose between a partial and complete occupancy certificate.
• Use your credentials to log into your existing account. To get instructions on how to check a commencement certificate online, press login or enter.
• Choose "New Registration" to set up a new account. Choose one of the two registration options, then fill out the necessary information.
• Once you have signed up and are logged in, complete the application page by entering the necessary information.
• Please provide all the requested legal documentation.
• For your application to be submitted, pay the listed pre-approval fees.
• Once the money has been made, submit your application by clicking the button.
• The appropriate authorities will receive the application for processing.
• The authorities will check the information provided in the application.
• You will be advised of the next steps after the application has been reviewed and completed.
• You can now avail of the commencement certificate online.

Importance of Commencement Certificate

1- Every document or certification in the real estate sector is beneficial to both buyers and sellers. Before completing a purchase, it is vital to examine all papers. If you fail to do so, you may pay dearly in the long run.

2- In addition to the developer, homebuyers must also get a commencement certificate. A developer cannot begin construction until he receives the commencement certificate. Therefore, a real estate buyer should avoid projects for which the local government has not yet granted permission.

3- You might lose substantial money if you lack even a single legal document. Before concluding a deal, homebuyers should thus take care and double-check all property documents. If the developer fails to submit the starting certificate, the purchaser of the home faces the risk of becoming the owner of the illegal property. This affects the property's legal title.

4- Additionally, it suggests that the purchaser of the land will be subject to government sanctions. Your diploma will always keep you out of trouble with the law.

5- If there is no commencement certificate, you may be acquiring an illegal construction or disputed property.

6- This certificate provides evidence that you are the legal owner of the property and that all applicable fees and taxes have been paid. You should request that the developer supply you with a certificate of completion. The local government authority should issue it.

7- You must immediately terminate the agreement if the developer refuses to provide the commencement certificate to you. 

Obtaining the commencement certificate is necessary for the real estate developer. Without this document, the builder is not permitted to start the construction of the property no matter how big or small the construction is. Starting construction without an authorised commencement certificate may lead to a hefty fine for the property developer. Understanding real estate laws can be tricky as they change from state to state in India. If you need expert help with your real estate search, taxation or anything else, NoBroker is here to help you! If interested, please comment below this article; our executive will be in touch with you soon. 

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