When dealing with buying or selling property, the possession certificate of that property is extremely important. It is essential that the seller of the property hands over the possession certificate to the buyer of the property, which will state the date of possession. In rural areas, the possession certificate is usually issued by the Tahsildar. In urban areas, the possession certificate is issued by the RDO (Revenue Divisional Officer).
The possession certificate has many uses besides confirming the ownership of the property and the date of possession. It is used as proof when securing a home loan from a bank. It is also important when entering the property in the land revenue records.
Without the proper issuance of a possession certificate, it becomes unclear whether the possession of a property has in fact been transferred from one party to another. This can lead to complicated legal issues regarding possession and ownership.
If you are planning to buy property, it’s essential you know how to obtain a possession certificate, what it contains and all the documents required to obtain it to ensure your purchase is hassle-free.
What is a possession certificate?
A possession certificate is a legal document that hands over the possession of land from the owner to the buyer. Once the land has been bought by the buyer for a sum of money, the possession certificate is given to the buyer by the previous owner to signal the transfer of the property.
The possession certificate is extremely important when it comes to buying a home or property as it proves that the property has been sold legally to the buyer and that they (the buyer) own all the rights to the concerned property.
When it comes to buying property from a builder or developer, the possession certificate is usually issued within 30 days. It is important that a resident obtains it as, without a possession certificate and registration documents, the buyer cannot prove to have rights to the property and the builder still owns it by law. This is problematic as the builder can then vacate the buyer (resident) lawfully.
The possession certificate will be issued only if the building has been constructed according to the proposed plans and adheres to the design rules and fire safety rules. It will also need to have a certificate of completion. The laws regarding this may vary from one state to another so it is best to check with your local authorities about how to go about getting the possession certificate in your area.
What are the contents in a possession certificate?
The possession certificate indicates the change in ownership – it is issued by the buyer. The ownership certificate will show that the property ownership has been given to the buyer. This ensures that the buyer has full interest in the property. Both parties have to register for the property. So, the developer has to sign the declaration that the property is no longer his and the buyer signs to take over the property. The possession certificate also includes the additional features of the property (parking area, garage, etc) that have been mentioned in the sales agreement.
What is a conditional possession certificate?
A conditional possession certificate or a conditional possession letter is a document that is used when the buyer of a property is not completely satisfied with the conditions of the property.
For example, reasons for dissatisfaction could include things such as repairs needed, low-quality construction, the wrong materials used or even a delay in the occupancy certificate. When the buyers are not happy with certain aspects of the property, they can send their concerns to the seller or builder along with the possession letter so that the seller or builder makes the needed changes that we agreed upon.
If the project happens to be delayed, the buyer can also ask for compensation from the builder for the losses incurred due to the delay.
What are the documents required to obtain a possession certificate?
If you need to get the possession certificate of a property, you need the following documents:
- Sale deed agreement copy
- Identification proof of the applicant
- Signature proof of the applicant
- Encumbrance certificate
- Registered sale agreement copy
What are the rights of the holder of the possession certificate?
The person who has the possession certificate has certain rights with regards to the property. These are listed below.
- It gives the purchaser complete authority on the property. They can decide to do as they wish with the property.
- They have the right to sell the property.
- The purchaser can do enhancements to raise the value of the property.
- They have the right to rent out the property and take the rent money.
- The seller of the property has no rights and cannot claim any benefits regarding the property.
- The buyer has rights to the details of the property plans by the regulatory authorities in charge, as well as the schedule, the structure plan and other documents that may be relevant.
Main differences between the Possession Certificate, Occupancy Certificate and Completion Certificate
1. When are each of these certificates issued?
Possession Certificate: After the initial paperwork has been submitted and a down payment is madehas been made.
Occupancy Certificate: The builder applies for this document (the occupancy certificate) after obtaining the completion certificate.
Completion Certificate: The completion certificate is issued when the property has been construction and is in accordance with the state’s regulations and norms.
2. Which authority issues each certificate?
Possession Certificate: The possession certificate is issued by the RDO (Revenue Divisional Officer) in urban areas. In rural areas, it is issued by the Tehsildars.
Occupancy Certificate: The municipal body of the area where the property is in will issue the occupancy certificate.
Completion Certificate: The authority that is in charge of declaring that the construction process of the property has ended will issue the completion certificate of that property.
3. What are the key contents of each certificate?
Possession Certificate: It includes all the timelines that the new owner has to adhere to regarding making the final payments of the property.
Occupancy Certificate: It states that the property follows all the necessary building codes and is ready to be occupied.
Completion Certificate: It will state that the project has been finished according to the building plans that were submitted. It also states that the property adheres to the state norms and lists the clearances that the property has.
4. What does each of these certificates signify?
Possession Certificate: It shows that the property rights have been transferred from one party to the other party.
Occupancy Certificate: It signifies that the property can be occupied by the buyer.
Completion Certificate: Completion certificate implies that the property is constructed fully according to the building plans that were proposed and agreed upon.
Checking the status of the possession certificate online
It is easy to track the status of the possession certificate of your property online through these ways:
- E-District Portal: Go to the E-District portal from the state you are from. Click on “Transaction History” and enter the application number. You can then see the status of your possession certificate.
2. Meeseva Portal: You can see the status of the possession certificate of your property on the Meeseva portal. Log in to your Meeseva account. Click on the option to track your application status – this will be on the homepage. Fill in the application number and click “Track Application Status” to see the status of your application.
Cooperative Housing Society