Importance of Occupancy Certificate (OC)

business sale can be significantly affected if an Occupancy Certificate (OC) has not been issued for the property. Here are some key reasons why: Legal Compliance: An OC confirms that the building complies with local building codes and is safe for occupancy. Without it, the property may not meet legal standards, making it illegal to occupy or use the building for business purposes1. Utility Connections: Essential utilities like water, electricity, and gas often require an OC before they can be connected. Without these utilities, the property is not functional for business operations2. Financial and Insurance Issues: Banks and financial institutions typically require an OC before approving loans or mortgages for the property. Similarly, insurance companies may refuse to provide coverage without an OC, increasing financial risk2. Resale and Lease Challenges: Potential buyers or tenants are likely to be deterred if an OC is not available, as it raises concerns about the safety and legality of the property. This can make it difficult to sell or lease the property3. Penalties and Fines: Local authorities may impose penalties or fines for non-compliance if a property is occupied without an OC. This can add unexpected costs and legal complications to the sale2. Ensuring that an OC is obtained before selling a business property helps avoid these issues and facilitates a smoother transaction process.