A possession certificate is an important document that is essential to every homeowner. It offers assurance and security from disputes or claims by serving as indisputable proof of the legitimate possession and ownership of a piece of property.
In this article, we will look at the meaning & significance of the document as well as explain how to obtain one!
A possession certificate, or a possession letter, is a document that serves as evidence that the ownership interest in the property has been transferred legally.
The certificate indicates that the seller handed over the property to you, the buyer, in a livable condition after obtaining a completion certificate from the concerned authority.The main purpose of a possession certificate is to prove that the property has been constructed following the local laws, adhering to the approved plan.
It allows the owner to reside in the property without any legal complications. Without a possession certificate, the property can be deemed as an illegal construction by the local authorities.
A possession certificate is issued by the Tahsildar in the rural areas and this responsibility falls on the RDO(Regional Development Officer) in Urban areas.
As a buyer, you may be dissatisfied with the property’s condition or its maintenance even after accepting the possession letter. In such cases, you have the right to issue a conditional possession letter that consists of all the necessary changes to the property the builder has to satisfy.
A certificate of conditional possession enables you to impose restrictions on the ownership of the property. If the builder refuses to comply with the terms of the conditional letter, you can take him/her to court.
A possession certificate does not give you ownership of the property. It merely signifies the transference of ownership from the seller/builder to the buyer.
An occupancy certificate is required to become the legitimate owner of the property.
A buyer needs to have a possession certificate to avoid legal complications in the future. Here is how you can get a possession certificate in India.
Step 1: Visit your nearest Tahsildar or RDO office or the related body responsible for handling possession certificates
If the area you stay in falls under the rural region, visit the Tahsildar office. In case it is classified as urban, then go to the RDO office.
Step 2: Request an application form for a possession certificate and fill in the required details of your property
Step 3: Submit all the necessary documents along with the application form
Step 4: After application, a technical officer will be sent to the property in question for a proper inspection
Step 6: A detailed analysis report of the property will be sent to the higher officials and the city planner
Step 7: Once the necessary procedures are completed, you will be issued a possession certificate
You can also apply for the possession certificate online through the National Government Services Portal.
Buyers must submit the following documents to obtain a possession certificate
Application Form
Proof of Ownership
Sale deed
Building Completion Certificate
Property Tax Receipts
Encumbrance Certificate
Proofs of Identity & Address
Land Records
No Objection Certificate (NOC)
Site Plan and Layout Approval
Occupancy Certificate
Payment Receipts
The format of the possession certificate varies depending on the state in which the property is based.
A possession certificate is an important document to have, because
It allows the buyers to get a government subsidy on the property
The certificate helps the owner secure a home loan on the property easily
It specifies that the property is in compliance with local laws and regulations
It ensures that the property is free of illegal issues
Obtaining a Possession Certificate is a necessary step for anyone who already owns or plans to acquire property. It is an essential document for numerous legal and financial circumstances. It plays a crucial role when applying for loans or property-related insurance. Lenders and financial institutions assess the reliability and worth of the asset being used as collateral using this document.
A possession certificate is valid for 12 years. It must be renewed after the validity expires to ensure it is legally valid.
Yes. A letter of possession does not certify that you are the property's legitimate owner. For it, an occupancy certificate is required.
Yes. If you are the owner of the property, you can transfer the possession certificate in the name of the next buyer.
The processing of the application will take 7 working days from the date of submission. After verification, you will receive a notice to pick up the certificate from the relevant office.
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