{"id":28892,"date":"2023-08-29T03:19:27","date_gmt":"2023-08-29T03:19:27","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=28892"},"modified":"2024-07-19T15:17:59","modified_gmt":"2024-07-19T09:47:59","slug":"types-of-possession-certificate-and-how-to-get-it","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-home\/types-of-possession-certificate-and-how-to-get-it\/","title":{"rendered":"Types Of Possession Certificate And How To Get It"},"content":{"rendered":"\n

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Buying a property is on the minds of many. However, a buyer should be aware of the various legal documents involved in the overall property \u2018buy and sell\u2019 process. A possession certificate or possession letter is one such important document. This legal document confirms the successful transfer of possession of a property from the seller to a buyer. It is also one of the requirements for home loan. Hence, once a buyer decides to buy a property, he\/she needs to ask for this certificate. With more to it, this article will help explore all the key details about a possession letter and how to obtain it.<\/p>\n\n\n\n

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What is a possession certificate?<\/strong><\/h2>\n\n\n\n

A possession certificate refers to a legal document that a property seller has to produce in the name of the buyer (new owner). The seller officially transfers all sold property rights to the new owner once the possession certificate is issued.<\/p>\n\n\n\n

It is an important document that states key facts like a description of the property, the date of possession, and the name of the new owner. Also, it specifies the final payment timeframe, which the new owner must abide by. It is a mandatory requirement for getting a home loan, implying that the buyer must have the home loan possession certificate while applying for a home loan<\/a>. Likewise, when claiming income tax deductions on a home loan, this certificate is a requirement.<\/p>\n\n\n\n

Without the possession certificate, the new owner\u2019s property is considered illegal, leading to legal repercussions like a penalty.<\/p>\n\n\n\n

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Who issues a possession certificate?<\/strong><\/h2>\n\n\n\n

In the urban areas, Revenue Divisional Officers (RDOs) issue the document. In the rural sector, the certificate is issued by the local tehsildar.<\/p>\n\n\n\n

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Conditional possession letter<\/strong><\/h2>\n\n\n\n

A conditional letter can be issued to the buyer when they are completely satisfied with the property particulars. This could relate to poor construction, unfinished work, and so on. Under such circumstances, the buyer can submit their complaints\/grievances to the builder\/seller along with thecertificate. The builder\/seller would have to make the needed changes. If they fail to do so, the buyer has the right to take a legal course of action in court.<\/p>\n\n\n\n

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Occupancy letter<\/strong><\/h2>\n\n\n\n

A possession certificate is proof that an interest in the property has been transferred legally. However, a buyer can be termed as the legal owner of the property once he gets an occupancy letter issued by local authorities. They certify the letter stating that the construction on the property is completed as per the approved plan, with adherence to local laws, and is ready to be occupied.<\/p>\n\n\n\n

The occupancy letter is thus a mandatory certificate that confirms the ownership and right to the property. Without this letter, the property is deemed illegal by the local municipal body.<\/p>\n\n\n\n

A buyer should get both the certificates in order to have possession and ownership of the property, respectively.<\/p>\n\n\n\n

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Documents required to acquire possession letter<\/strong><\/h2>\n\n\n\n

To obtain the certificate, the key documents mentioned below need to be furnished. This list could differ between states.<\/p>\n\n\n\n