Occupation certificate (OC)

An occupation certificate, or OC, certifies that a completed building complies with the approved plans and relevant standards and is fit to be occupied, marking the point of practical completion for a construction project and generally required before a residential or commercial building can be lawfully used or sold with vacant possession. On a financed construction project, issue of the OC typically triggers the final drawdown and starts the clock on any defects liability period, and lenders will confirm the OC has been issued before releasing final funds or transitioning a facility toward its exit. For a developer selling completed stock, the OC is also usually a condition of settlement with individual buyers, since most purchase contracts require the property to be legally occupiable at the point title transfers. Delays in obtaining the OC, often caused by outstanding minor defects or certifier availability, are a common reason a project's exit slips even after construction itself is substantively finished.

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Construction finance · BA · Residual stock