Possession Certificate: Everything you need to know

Owning land is a pretty big deal in our country. Article 19 of the Indian Constitution states that every citizen has the right to buy, hold, and sell property. To make things official, you have to get a possession certificate. It’s a document that proves you own the property and that the sale is legit. Without it, you can’t really claim any rights to the land. A builder can also give you a possession certificate to show that you bought the property from them. The main idea is to make the transfer of ownership official and give you all the rights to the property.

Importance Of A Possession Certificate

It is important to note that a property owner cannot be deemed validated until a possession certificate has been issued in the name of the buyer. This certificate is the primary document, among several others, that the buyer must request from the seller. Without the issuance of this certificate, the property in question will not be recognized as belonging to the buyer, and hence, they will not have any legal rights to it. It is important to remember that each state has different procedures and regulations that must be followed to obtain a possession certificate. On average, it takes around 30 days to receive the certificate. Therefore, it is crucial to understand and adhere to each state’s rules and regulations when seeking to obtain a possession certificate.

Occupancy Certificate

Obtaining an occupancy certificate is of utmost importance for builders, as it certifies that the building has been constructed as per the prescribed norms and is suitable for occupancy. It is imperative for prospective homeowners to check the occupancy certificate before purchasing a house from a builder, in addition to possessing a possession certificate. The certificate can be obtained by the builder from the local municipality, and certain banks also consider it before granting home loans to buyers.

The significance of an occupancy certificate has been underscored by a recent judgement by the Supreme Court under the Consumer Protection Act. The apex court has held that it is mandatory for the builder to obtain an occupancy certificate, and buyers have the right to demand substantial compensation if the builder fails to do so. This ruling has further cemented the importance of obtaining an occupancy certificate for all parties involved. 

Possession Certificate and Occupancy Certificate: Differences

A Possession Certificate is a legal document that officially transfers the ownership of a property from the seller to the buyer. This document can be issued by an individual, not necessarily a builder. In contrast, an Occupancy Certificate is a certificate provided by the builder to the buyer of a house, indicating that the property has been constructed in compliance with the applicable norms and is fit for habitation.

Conditional Possession Letter

It is not uncommon for a buyer to express dissatisfaction with a property even after its possession. In the case of a property purchase, this could arise due to issues such as leakages or erosion of walls, pending repair work, and other similar concerns. In such instances, it is recommended that the buyer write a letter to the builder, sharing their feedback and requesting that they undertake the necessary remedial measures. Should the builder fail to address the concerns, the buyer may consider presenting a conditional possession letter in court.

How To Get A Land Possession Certificate?

Individuals seeking to obtain a possession certificate are advised to get an application form from the Tahsildar office in rural areas or the Revenue Divisional Officer in urban areas. To streamline the process, we have broken down the steps in acquiring a possession certificate below. 

Step 1: Acquire the application form from the Tahsildar office or the Revenue Divisional Officer, depending on your area of residence, to apply for a possession certificate. 

Step 2: Accurately provide your personal details and those about your property. You should review all the information provided and seek assistance from the local authorities in case of any ambiguity. 

Step 3: Ensure the required documents are attached to the application form.

Documents required:

• Two passport-size photographs
• Ration card
• Aadhar card
• Proof of ownership of property
• Income certificate and income details
• Building completion notice as given by the architect or engineer
• Photographs of the property

The following are the steps to obtain a possession certificate:

Step 4. Fill out the form with all the required information and submit it to the relevant office. Ensure that you obtain the acknowledgement letter and application number. Once you obtain the application number, you can check the status of your possession certificate on the digital portal. 

Step 5: A technical officer will visit and conduct a comprehensive inspection of your property. 

Step 6: After the inspection, higher officials and the city planner will review the technical officer’s report. 

Step 7: You will be notified of the expected date for receiving the possession certificate. 

Step 8: Upon issuance of the certificate, you may either download it from the e-district portal or collect a hard copy from the respective office. Kindly note that you need to log in using your credentials to download the certificate online.

Sample of Possession Certificate Format

Wrapping Up 

Possession Certificate is a linchpin in property transactions, symbolizing legal ownership and safeguarding buyers’ interests. Diligence in following state-specific procedures and adhering to documentation requirements is key to obtaining this crucial document efficiently.

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