In India, owning a home is a dream come true for all. Investing in a residential flat or land requires you to get a possession certificate or letter to prove your ownership. It’s a crucial document that validates your ownership. In this blog, we will explore everything about possession certificates. Let’s check out.
What is a possession certificate?
A possession certificate refers to a legal document (letter) that the builder or property seller provides to the homebuyers. While in the urban areas it is given by the RDO (Revenue Divisional Officer), in rural areas, it is given by the Tehsildar.
The possession letter proves the buyer’s ownership and validates the transaction between the seller and buyer. It indicates the smooth transfer of the property from the seller (previous owner) to the buyer. A possession certificate is provided only if a real estate project has been constructed according to the plans and fulfills all the design and safety rules.
Until the buyer is issued the certificate, the property doesn’t come under their authority. Remember, every state of India has specific rules and guidelines for obtaining a possession letter, which takes around 30 days.
What is included in a possession certificate?
The possession letter has the following content:
- Description of the property (including parking, garage, etc.) as per the sales deed.
- Transfer of ownership from seller to buyer.
- Date of possession
The role of occupancy certificate
An occupancy certificate refers to the document that confirms whether the building follows proposed construction norms or follows the RERA guidelines. It also validates its suitability for occupancy. Builders need to provide occupancy certificate to home buyers for authentication. Many lenders and banks check an occupancy certificate first to grant home loans.
Difference between possession certificate and occupancy certificate
Here are the major differences a possession certificate and an occupancy certificate.
Possession certificate:
It clarifies the buyer is now legally the owner of the house/land. It showcases property rights transfer.
Occupancy certificate:
It confirms that the building is as per the proposed plan and is suitable for living.
Conditional possession certificate
A conditional certificate refers to a legal letter that the builder gets from the buyer. It includes a request for required improvements or repairs after possession. Sometimes, homebuyers aren’t satisfied with the purchased home. In that case, they can write a letter addressing the builder about required improvements. If the builder ignores this letter and the requests made in it, the buyer has the right to present such a letter in court for legal proceedings.
Required documents for possession certificate
In order to obtain the possession letter, you need to provide the following documents:
- ID and signature proof of the applicant
- Copy of sales deed agreement
- Registered sales agreement copy
- Certificate of encumbrance
Conclusion
A possession certificate is one of the most important documents for homebuyers. It legalises your ownership and validates your authority over the home. With it, you can validate your transaction with the seller. So, when you buy a property in India, don’t forget to ask for the possession certificate.
