Occupation certificates in NSW

Moving in before everything is finished

NSW used to issue interim and final OCs. Since 1 December 2019 there is just one type of occupation certificate. You may still see "interim" or "final" in older approval conditions, but they only apply to approvals issued before that date.

A partial OC may still be issued for whichever section of the building is ready to use. The unfinished work must not create a health or safety risk, and your approval must not rule it out. The certificate must clearly show which part it covers. You then have five years to get an OC for the whole building.

What the certifier looks at

Before issuing an OC, your principal certifier (the certifier in charge of your job) must be satisfied of several things. Your approval must still be in force. A construction certificate must have been issued, if one was needed. The finished work must match the approval. Any conditions due before move-in must be met. And under the building code, the building has to be suitable for use.

There is no limit on how many OCs a project can have, but each one must meet every requirement. Your certifier keeps records of why each certificate was issued.

BASIX and smoke alarms

If your home has a BASIX certificate (the NSW energy and water rating for homes), your certifier is required to issue a BASIX completion receipt. This step sits between the last inspection and the OC. It confirms the home was built to match the BASIX certificate.

A new house needs smoke alarms that meet AS 3786. They must run on mains power if the house has it, and be interconnected where two or more are installed. Each hallway that serves bedrooms needs one. With no hallway, place one between the bedrooms and the other parts of the house. Every storey without bedrooms needs one too. Alarms go on or near the ceiling, away from dead air pockets.

How do I apply?

You apply for an OC online via the NSW Planning Portal and upload the supporting documents. Councils have had to use the Portal since 1 July 2021. Have your inspection records, trade certificates and BASIX details ready before you apply. That avoids delays from requests for more information.

When the certificate is held back

A principal certifier has no discretion to issue an OC while any requirement is still unmet. Building Commission NSW expects certifiers to tell the applicant as soon as they become aware of a problem, so it can be sorted while trades are still on site rather than after they have left.

The reverse also holds. Once every requirement has been satisfied and the fees are paid, a certifier cannot refuse the certificate. If you are unsure why yours is on hold, ask for the outstanding items in writing and work through them one by one.

Site items that can delay the OC

Some conditions reach beyond the house itself. Depending on your approval, landscaping, fencing or the driveway may have to be completed first, before any OC is issued. Bins and utility connections also need to be in place.

Read your conditions early in the build and mark each one tied to occupation. Items such as a driveway crossing or a condition requiring planting are easy to leave until the end, and they are often handled by trades other than your builder.

Lenders, final payment and handover

With a construction loan, your lender is likely to want the OC before it releases the last payment to the builder. It may also ask for your home insurance policy and the builder's final invoice, and send a valuer to look at the house. Ask the lender early which documents it needs.

Moving in before the final payment is made puts you in breach of the building contract, unless the builder has agreed in writing. Treat the OC, the final payment and the handover as one connected sequence, with the OC first.

Using a building without an OC

Living in or using a new building that needs an OC before one is issued is an offence. Councils can respond with penalties, notices and orders.

The risk extends to a partly finished home. If only some rooms are ready, the lawful way to use them early is a partial OC covering that part, not simply moving furniture in. Talk to your certifier about this before the final stages, while the documents for the finished section can still be gathered.

After the OC is issued

An OC reflects the inspections and records the certifier held on the day it was issued. Compliance from then on, including later changes to the building, falls to the council, not the certifier.

The issue date can matter for your warranties as well. The NSW Government's home building guidance explains that statutory warranty periods run from completion, being the earlier of handover of possession or the OC being issued. Report any defects to your builder in writing as soon as they show up, with photos.

Pools, property sales and tenancies

Selling a home that has a pool brings extra paperwork. The vendor must attach the pool's registration certificate to the contract, plus one more document: an OC issued recently, a current compliance certificate under the pool laws, or a non-compliance certificate. Leave these out and the purchaser may have a right to cancel within the first 14 days after exchange, provided settlement has not taken place.

For a rental, the landlord must supply the tenant with the pool's compliance certificate or its OC. A non-compliance certificate is not enough to lease the home. Compliance certificates expire after 3 years, so keep track of that date if you plan to lease the home later.