Karnataka's 1,200 sq ft OC exemption: what it means for safety, buyers and builders
The state is considering an exemption from Occupancy Certificates, or OCs, for homes built on plots up to 1,200 square feet. If approved, many small homes in dense parts of Bengaluru and other cities would no longer need an OC after construction. That cuts paperwork and cost for owners who struggle with approvals.
An OC is the final nod from the local authority that a finished building matches its sanctioned plan and key safety norms. It is how agencies check basics like structure, setbacks, height, ventilation, fire clearances, sewage and water connections. Without an OC, a property can face trouble getting permanent utilities, bank loans, insurance, or resale approvals later.
For first time builders, the OC process can feel slow and expensive. Small plots are common in older neighbourhoods, where files get stuck and contractors cut corners. An exemption could remove a hurdle and let families move in sooner. It may also help owners whose builders never finished the paperwork even though the house is ready.
The risk is simple. If you remove the final compliance check, more homes may get finished with deviations that never get fixed. Setbacks can shrink, extra floors can appear, and drainage, parking and fire access can get ignored. One or two violations look minor. Thousands of them can strain roads, drains and power lines, and that hurts everyone who lives there.
OC checks act as a last filter. Without them, the burden shifts to routine inspections and citizen complaints, which are already stretched. That can lead to disputes when owners seek water or power, or when they try to sell and buyers ask for paperwork. Mortgage lenders and insurers also prefer clear completion records. If those are missing, costs and delays can rise later in the life of the home.
Stand-alone homes on tiny plots will benefit most. Mid-size apartment buildings still need multiple clearances and will likely keep their OC path unchanged. Large, master-planned townships are built under strict approvals and staged handovers. For example, Godrej MSR City at Shettigere in North Bengaluru is a 62 acre high rise township near the airport trumpet road, registered with RERA and planned in phases. Buyers in such communities expect full compliance, defined amenities, and formal possession with completion certificates when each phase is ready.
It will speed occupancy for some families. It will not solve deeper issues like weak enforcement, unclear by-laws, or poor coordination between utilities and local bodies. In fact, without a robust replacement process, the exemption can shift today's delay into tomorrow's dispute, when owners apply for loans, try to sell, or seek building upgrades.
- Check the sanctioned plan: Ask for the approval letter and compare basic dimensions, floors and setbacks to what is built.
- Ask about utilities: Confirm how permanent water, sewage and power will be provided, and what documents the utility wants at connection time.
- Verify RERA where it applies: RERA registration and quarterly updates do not replace an OC, but they add transparency on timeline and status.
- Review bankability: If you plan to take a loan or sell later, ask a lender what documents they will require at that stage.
- Get it in writing: Possession date, scope of amenities, and who handles compliance should be part of your agreement.
If the exemption goes ahead, the state can publish a simple self-certification checklist for small homes, require geo-tagged photos, and run random audits. Cities can link utility connections to that checklist. Developers can offer bundled compliance services even for small projects, so owners are not left to chase files alone.
- The final wording of the rule, including which plots qualify and what alternate checks replace the OC.
- How utilities treat new connections for exempt homes.
- Whether local bodies increase on-site inspections and publish a simple dispute process.
- Any guidance from lenders and insurers on documents accepted in place of an OC.
The OC exemption for 1,200 square foot plots aims to ease life for small homeowners. It can help, but only if there is a clear, simple system to protect safety and services. Buyers should still demand basic documents, inspect the site, and plan for future needs like loans and resale. Those who prefer full compliance from day one can look at regulated, RERA-tracked townships in strong locations, such as Godrej MSR City in North Bengaluru, where approvals, services and handovers are built into the master plan.
