Possession Certificate - The Ultimate Evidence of Homeownership

Hello there, future homeowner! Imagine this: you've discovered the ideal property that resonates with your vision of a perfect home. The time has come to establish your ownership, but before you proceed, you must understand possession certificates.

Rest assured; we're here to assist you every step of the way. Within this blog, we aim to uncover the complexities of possession certificates, shed light on their various types, etc.

What is a Possession Certificate?

A possession certificate, commonly called a "possession letter," is evidence of the property ownership transfer from the seller to the buyer. This crucial document confirms possession and facilitates the process of obtaining a home loan from a bank or financial institution.

In rural India, the Tehsildar is responsible for issuing the possession certificate, whereas urban residents must acquire it from the Revenue Divisional Officer (RDO).

What is a Conditional Possession Letter?

Imagine you're unsatisfied with your property despite possessing the building. Maybe it's because of low-quality construction, unfinished work, or other issues.

Here's a solution: you can request a conditional possession letter. This allows you to express your concerns directly on the builder's copy of the letter. It's a way to address the problems and seek resolution while holding onto your ownership.

You can share all the details about your dissatisfaction with the property and request the builder to make the required changes according to the agreement. If the builder doesn't meet your expectations, you can escalate the matter to the court for further resolution.

It's your way of addressing your concerns and seeking appropriate action.

What is an Occupancy Certificate?

Imagine you've acquired a possession letter for your property, but that doesn't make you the rightful owner just yet. To establish your ownership, you'll need an occupancy certificate obtained from the local authorities.

This certificate proves that the construction has been completed according to the approved plan and the building is fit to live in. It's a crucial document that confirms your property ownership and ensures compliance with local regulations. The local municipal body may consider your property illegal without an occupancy certificate.

Documents Required for Possession Certificate

To complete the process, you will require the following documents:

• Proof of current property or land tax payment

• Ownership identity proof

• Ration Card, Income Certificate, and Aadhaar Card

• Encumbrance certificate copy

• Two clear passport-size photos

• Photo of the building/property/land

• Registered lease and sale agreement copy

How to Acquire a Land Possession Certificate?

To apply for your Land Possession Certificate, follow these steps:

Step 1: Visit the appropriate Tahsildar Office (rural) or Revenue Divisional Office (urban) to obtain the Land Possession Certificate application form.

Step 2: Fill in your personal and property details accurately on the form.

Step 3: Submit the completed form with essential documents such as an income certificate, passport-size photos, Ration Card, Aadhaar Card, and proof of ownership or property.

Step 4: Receive an acknowledgement and application number upon submission. You can utilise this number to monitor the progress of your application.

Step 5: Await a property inspection by a technical officer followed by reviews from higher officials and the city planner. Once approved, collect your possession certificate from the office or download it from the official e-district portal.

Rights of Possession Certificate Holder

As a holder of a possession certificate for a home loan, you possess several important rights about the land:

1. Full control and authority over the property, allowing you to make any desired changes or use it as you see fit.

2. The ability to sell the property at your autoretion.

3. The right to make improvements or enhancements to the property, increasing its market value.

4. The privilege to rent out the property and derive profits from it.

5. Protection against sellers attempting to claim benefits or rights associated with the property.

6. A legal claim on the property until the seller accepts the delivery, which lets you request a refund of the amount paid if the property is not delivered as agreed.

7. The right to demand reimbursement of the paid amount and enforce the fulfilment of the contract if the seller fails to deliver the property.

8. Access to all building plans and relevant documents concerning the property from regulatory authorities.

 These rights give you significant control and protection as a holder of a possession certificate for a home loan.

Final Word:

In conclusion, a valid possession certificate grants you comprehensive rights and control over your property. You can make changes, sell, enhance, and rent the property while safeguarding your interests against sellers.

Explore IIFL Home Loans today to access more insightful blogs like this one. Let IIFL Home Loans be your trusted partner in securing a home loan and fulfilling your dream of owning a house. Visit us now and embark on a seamless home-loaning and home-buying experience!

FAQs

1. 1. Do you need a possession certificate to claim tax benefits?

 Yes, you must provide the possession certificate to avail of tax benefits.

2. 2. What happens if you don't possess a possession certificate?

A possession certificate is crucial to secure a home loan or claim income tax deductions. Without it, your possession of the property could be deemed illegal by the local municipal authority. With some lenders, having a possession certificate may be required for a home loan. 

3. 3. How long does it take to obtain the certificate?

While the timeline varies across states, the relevant officer will supervise a verification process once you apply. You can expect to receive the possession certificate within 7 days if everything goes smoothly.

4. 4. Which documents do you need to submit?

To get your possession letter, you must provide copies of the registered lease and sale deed agreement, ration card, encumbrance certificate, and identity proof.

5. 5. Who is a Tahsildar?

A Tahsildar is a declared officer responsible for land, tax, and revenue matters. To obtain a possession certificate in rural areas, you must approach the office of the respective Tahsildar.