"Possession now, OC soon" is a line many buyers in Thane, Kalyan, Badlapur and Mumbai have heard. Sometimes the OC does follow in a few months. Sometimes it never comes, and owners live for years with temporary connections, higher bills and a flat that is hard to sell or borrow against. Here is what the certificates mean, what the law expects of the builder, and how to protect yourself.

CC and OC: what each one means

Commencement certificate (CC). Under the Maharashtra Regional and Town Planning Act, 1966, a builder needs development permission and a CC from the planning authority (the municipal corporation, council, MHADA, CIDCO or another authority) before starting work. The CC confirms that the plans are sanctioned. A MHADA certificate issued in June 2026 shows typical conditions:

  • the CC is valid for one year from issue
  • if work hasn't started, it can be renewed every year, but not beyond three years in all
  • no part of the building may be occupied until occupancy permission is granted
  • in some cases, the CC covers work only up to plinth and must be re-endorsed for work above it

Occupancy certificate (OC). RERA defines it as the certificate issued by the competent authority permitting occupation of a building, which has provision for civic infrastructure such as water, sanitation and electricity. It is issued after the building is complete and inspected against the sanctioned plan. A completion certificate certifies that the project was built according to the sanctioned plan. Some authorities issue them together. A part OC may be issued for some floors or wings.

What the law expects of the builder

  • Get the OC. Section 11(4)(b) of RERA makes the promoter responsible for obtaining the completion certificate or OC and making it available to buyers or their association.
  • Possession after OC. Under clause 7.1 of Maharashtra's model agreement for sale, the promoter offers possession upon obtaining the OC, within 7 days of receiving it. The model payment schedule keeps the final instalment for possession "on or after receipt of occupancy certificate or completion certificate".
  • Your obligation starts after OC. Section 19(10) of RERA requires a buyer to take possession within two months of the OC. It says nothing about taking possession before one.
  • Conveyance. Under the Maharashtra RERA Rules, in a single-building project the promoter must convey title to the society within three months of the OC, or once 51% of buyers have paid in full, whichever is earlier, unless the agreement says otherwise.
  • MOFA. For older, pre-RERA buildings, the Supreme Court has read sections 3 and 6 of the Maharashtra Ownership Flats Act as barring possession before the completion certificate and requiring the promoter to provide the OC.

Can you get a home loan on a flat without OC?

Under construction: yes. OC isn't expected yet. Lenders release the loan in stages as the building rises, and check the CC, sanctioned plan and MahaRERA registration. See home loans for under-construction flats.

Ready or "possession given" flat without OC: this is where it gets hard.

  • RBI's housing finance rules tell banks to get an undertaking that a ready-built property was built as per the sanctioned plan, certified by the bank's architect, and not to lend on properties in unauthorised colonies until they are regularised.
  • Bank checklists for ready and resale flats, such as Kotak's, list the occupancy certificate among the property documents.
  • Since 13 October 2026, Sub-Registrars must refuse to register sale documents for flats in unauthorised buildings, and a first sale in a MahaRERA project needs the MahaRERA certificate or the OC with the sanctioned plan.

In practice, many banks will decline a ready flat with no OC. Some lenders may consider one case by case, usually with more conditions, such as a lower loan amount, a part OC for that wing, or proof that the OC application is pending only for a reason that can be fixed. There is no standard answer, and no lender is obliged to lend.

For a resale flat, the same check applies. Our resale flat home loan checklist covers the other documents.

The risks of living in a flat without OC

  • Utilities. In the Samruddhi case decided by the Supreme Court in January 2022, owners who took possession in 1997 without an OC could not get regular water and electricity connections and lived on temporary ones arranged by the society.
  • Higher property tax and water charges. The same owners paid property tax 25% above the normal rate and water charges 50% above it. Charges differ by city, so ask your local body what applies to your building.
  • Legality. If the OC is held up because the building deviates from the plan, the building may need regularisation. Buildings that cannot be regularised face action, and the October 2026 circular now blocks their sale documents.
  • Resale and loans. Your buyer's lender will ask the same questions yours did, which shrinks the pool of buyers and the price.
  • Redevelopment and insurance. An unclear legal status can complicate both, years later.

Conveyance without OC

A society cannot wait for ever. A Co-operation Department GR of 22 June 2018 simplified deemed conveyance, cutting the documents required, and allowed it even without an OC or building completion certificate, with an indemnity bond from the applicants. Getting the land into the society's name is often the first step to then pursuing the OC or regularisation itself.

What to do if the builder hasn't got the OC

  1. Ask why, in writing. Common reasons are deviations from the plan, unpaid premiums or charges, or a missing fire or other NOC. Some are paperwork; some are serious.
  2. Check MahaRERA. For a registered project, look at the project page for the completion date, extensions and uploaded documents.
  3. Don't pay the final instalment that the agreement links to the OC until you see it.
  4. Complain to MahaRERA about a breach of section 11(4)(b), and claim interest for delay under section 18 if possession is late.
  5. Use the consumer commission. In Samruddhi, the Supreme Court held that failure to get the OC is a deficiency in service and a continuing wrong, so the complaint was not time-barred, and buyers could claim compensation for the extra tax and water charges.
  6. Organise as a society and pursue deemed conveyance, then the OC or regularisation, with an architect's help.

How Biz Corp Solutions helps

We check a flat's approvals against what lenders need before you commit, and arrange home loans through banks and housing finance companies whose policies fit the property. For developers, we arrange construction finance for approved projects, where a clean path to OC also matters to the lender. The lender makes the final credit decision.

This article is based on the RERA Act, the Maharashtra RERA Rules, RBI directions, a Supreme Court judgment and the other sources listed, up to 21 October 2026. It is general information, not legal advice. Check your building's approvals with a lawyer or architect before buying.