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Possession Certificate

Possession Certificate

Also known as the Possession letter is one of the key documents that a property seller hands over to the property buyer. The possession certificate in India is usually given by the Tehsildar (in rural areas) and Revenue Divisional Officer (in urban areas). The buyer can use this certificate to secure a loan from financial securities too.

A possession certificate is proof that the property has been transferred without any illegal, illicit activities. But to confirm that an individual is the owner of the property he should have an occupancy certificate too.

The possession certificate in India is issued by local authorities stating that the property has been constructed as per the laws and the construction has been completed as per the plan that is approved.  The possession certificate is a document to affirm the ownership of the property. In case of failure to get the certificate, can make the property illegal in front of the local authorities.

Particulars of the possession certificate

The possession certificate includes information regarding the description of the property and the required add-ons like the parking, garage, etc. as agreed upon in the contract. The possession certificate should be authentic and include the date of the possession of the property.

Documents required to obtain a possession certificate

To obtain a possession certificate in India the following documents can be submitted:

  • Copy of the registered lease and the sale deed agreement
  • Ration Card
  • Copy of the encumbrance Certificate
  • Id proof of the applicant.

How to obtain a possession Certificate?

The process to obtain a possession certificate may be different in every state. But usually, the process is as follows:

  • Visit the nearest Anchaladhikari office for procuring the application form. The form can be downloaded from the Revenue and Land Reforms website of the respective state.
  • Fill the application form with the details that are required.
  • Attach the relevant documents and submit them with the form of the concerned office.
  • Once the documents are submitted the applicant will receive an acknowledgment receipt. The receipt will have an application number that can be used for further reference.

What is a conditional possession certificate?

Sometimes even though an individual has accepted the possession of the property, he might not be satisfied with the condition of the property. It can be due to various aspects like faulty constructions, usage of the different material for construction, poor quality of construction, etc. in such situations an individual as a buyer can accept the conditional possession letter in which all the conditions that are to be met the builder are mentioned in detail.

A person can provide and mention all the details because of which he is not satisfied with the property and ask the builder or the seller to make the changes as per the agreement. In case the builder fails to comply with the mentioned then the matter can be taken to the court by the buyer.

What is an occupancy certificate?

A possession Certificate is just a property that the interest in the property is transferred without any illegal activities. But to confirm that he owns the property an individual must get an occupancy certificate.

The occupancy certificate is issued by the local authorities stating that the property has been constructed as per the laws and the approved plan. This certificate is proof that the property is ready to be occupied. An occupancy certificate is a mandatory document to affirm the ownership of the property. Failing to get the occupancy certificate may term this property to illegal by the local authorities.

Possession Certificate vs Occupancy Certificate

The possession certificate does not make the buyer of the property the legal owner. The owner needs to have an occupancy certificate that not only gives him or her the right to the property but also access to the basic civic amenities that are offered in the complex.

The possession letter bears the period before which the owner has to make the final payment and take possession of the property. While securing a home loan the original copy of the possession letter must be produced.

An occupancy letter is issued by the local authorities that states the project is completed and the building can now be occupied. The occupancy letter also states that the property has been built in compliance with the laws applicable.