Possession certificate: Importance, Advantages, and more

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!

What Is a Possession Certificate?

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. 

What Is a Conditional Possession Letter? 

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. 

What Is An Occupancy Certificate?

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. 

How To Obtain A Possession Certificate?

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

Documents Required To Obtain A Possession Certificate

Buyers must submit the following documents to obtain a possession certificate

Format Of Possession Letter

The format of the possession certificate varies depending on the state in which the property is based.

What Are The Advantages Of The Possession Certificate?

A possession certificate is an important document to have, because

Conclusion

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.

Possession Certificate - Related FAQs

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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