What is a Possession Certificate?
Date : 16 Jul, 2021
Post By Advocate SARVESH ROY
The Possession certificate or letter is an important document that the seller has to provide to the buyer stating the date of possession. In rural areas, it is issued by the Tehsildar, whereas in urban areas, it is issued by the RDO (Revenue Divisional officer). You can also use this letter to secure a home loan from the bank. The certificates also include the timeline within which the buyer has to make the final payment. A possession certificate is an evidence stating that the interest in the property has been transferred without the use of any illegal activities. However, you must obtain an occupancy certificate to confirm that you are the legal owner of the property. This is issued by the local authorities stating that the property has been constructed in accordance with the local laws and the construction is complete as per the approved plan. The certificate establishes that the property is ready for the purpose of occupation. It is a compulsory document to affirm your ownership of the property. If you fail to obtain the certificate, it can lead to local authorities deeming the property as illegal. The Possession certificate will be issued within 30 days, if the building has been constructed in accordance with accepted plans, design norms, and fire safety requirements as well as the certificate of completion. The applicable law differs largely from one state to another and therefore it is important to know about the local regulations for possessing a certificate. Contents of the Possession Certificate: The Possession certificate is issued by the buyer indicating the change in possession. This certificate includes the description of the property and the required add-ons like parking space, garage, etc. as agreed upon in the sale contract. The certificate should be written and authentic. It should also specify the date of the possession of the property. Both the parties must sign on the same i.eThe builder must sign a document confirming that he no longer has control of the property, and the builder must sign overstating that the possession does not lie with him any longer the buyer must sign to take over the possession of the property. Consult the best lawyer online How To Get a Possession Certificate? Application form along with following documents to be submitted to the appropriate authority- Proof of ownership to the property Property tax receipt. Identity proofs like Aadhar card, Pan Card. and Voter Id NOC from the seller. Rights of a Possession Certificate Holder: The buyer holds the full right to resell the property. The buyer can rent out the property and get profits from the same. It provides complete authority on the property to the buyer. The seller of the property can claim no benefits on the property. The buyer has the advantage of doing any improvement or raising the value of the property. The buyer is also entitled to get the reimbursement of the money to impose the specific performance of the contract, where the seller has not delivered the property. Until the seller refuses to accept the delivery of the property, the buyer has a charge on it. They might ask the seller for the money paid in anticipation of the delivery of the property. The purchaser has the right to acquire details related to the plans approved by the respective authority, the schedule of the same type, the entire structure plans, along other relevant documents.
Documents required: You need to produce the following documents in order to get the Possession Certificate- Certificate of encumbrance Copy of sale deed agreement Copy of registered sale agreement The Identification and signature proof of the applicant What is a conditional possession certificate? Even though an individual sometimes has accepted the possession of the property, he or she may not be satisfied with the condition of the property. It could be due to various aspects like poor quality of construction, faulty constructions, usage of the different materials for construction, etc. in such case an individual as a buyer can accept the conditional possession letter in which all the conditions that are to be met by the builder are mentioned in detail. A person can provide and mention all the details because he is not satisfied with the property and ask the builder or seller to make the necessary changes as per the agreement. If 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 simply 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 obtain an occupancy certificate. The occupancy certificate is issued by the local authorities stating that the property has been constructed in accordance with the laws and the approved plan. It is proof that the property is ready to be occupied. An occupancy certificate is a compulsory document to affirm the ownership of the property. Failing to obtain an occupancy certificate may term this property as illegal by the local authorities. Get in touch with the best lawyer online Difference between Possession Certificate, Occupancy Certificate, and the completion certificate The possession certificate contains the date of completion of a property and it cannot be used as proof of ownership of a property. The possession letter specifies the period before which the owner has to make the final payment in order to take the Absence of this certificate will make possession illegal. Local governments, on the other hand, provide an occupancy certificate (OC) to state the completion of the project. The certificate also indicates that the property is ready for occupation purposes. It gives the buyer all the rights to the property with complete access to civic amenities such as electricity, Parking, running water, etc.
