What Is a Possession Certificate and What Documents Are Required for It?

A possession certificate is a legal document transferring the ownership of land or property to the buyer from the developer or previous owner, serving as one of the vital documents required in buying a house, that indicates that the buyer now owns all the property rights. The accreditation should be handed to the purchasing party, stating the possession date. Without the particular document in question, you have no control over the property, with the ownership lawfully residing with the builder, who has the right to vacate the occupant taking the help of civil authorities.  

If you are residing in rural India, the possession certificate is provided to you by the Tehsildar. For those living in urban areas, it is the responsibility of the Revenue Divisional officer to furnish the above document, which in either case should be issued within 30 days, provided the property has complied with all the construction provisions, such as structural designs, fire safety, and certificate of completion. Nonetheless, the law varies from state to state, making it necessary for everyone to know their local regulations. 

Importance of possession certificates in case of home loan

A possession certificate is to be presented when applying for a home loan, making it one of the most vital documents for a buyer to finance his house, especially if they wish to avail of benefits like interest rates. Sometimes, the certificate may even have a timeline for the buyer to make the final payment. Another critical fact to consider here is the validity of a possession certificate is seven days. 

1. Proof of ownership: A possession certificate is the legal proof of ownership or possession of a property. It indicates that the person or entity holding the certificate has the right to use and occupy the property.

2. Protection against disputes: Possession certificates help protect against disputes over ownership or possession of the property. It can be used to resolve disputes in court or with other parties who may claim rights to the property.

3. Facilitates transactions: Possession certificates are often required when buying or selling a property. The certificate provides assurance to the buyer that they are purchasing a property from a legitimate owner and to the seller that they are transferring ownership to a rightful owner.

4. Securing loans: Possession certificates are required by lenders when granting loans against a property. It helps them ensure that the borrower legally owns or possesses the property, reducing the risk of fraud.

5. Compliance with legal requirements: Possession certificates are mandatory in some jurisdictions, and failure to obtain one can lead to legal consequences. It is essential to ensure compliance with local laws and regulations related to possession certificates.

Overall, a possession certificate plays a critical role in establishing ownership or possession of a property, protecting against disputes, facilitating transactions, and ensuring compliance with legal requirements.

What is a conditional possession certificate?

After receiving the possession certificate, the buyer has the right to set forth a conditional possession certificate if not satisfied with the condition and maintenance of the property, stating their complaints about it, from poor construction quality to pending repair. 

The conditional certificate conveys the buyers' dissatisfaction to the developer or seller, asking the latter to make the changes. If not agreed upon, you can take the matter to court.

Documents required for a possession certificate

Procuring your possession certificate requires extensive documentation, varying from state to state, with the following paperwork being a must. 

• Proof of ownership of property
• Income certificate
• Ration Card
• Aadhar Card
• Two passport-sized photographs
• Encumbrance certificate
• Property proof or land tax paid to date

How to get a Land or property possession certificate

As stated above, the Tehsildar lends out the possession certificate in the case of rural India and the Revenue Divisional officer for urban India. Nonetheless, here are the following steps.

• You can either download the form from the state government's revenue and land reforms office or visit the nearest Anchalaadhikari or the right to public service office and get the application form for the possession certificate.  
• Duly fill-in the application form, adding the required documents. Be extra cautious while carrying out this step, ensuring all details are correct and up to date.
• Submit the form, attached with the necessary documents, to the required office, where you will receive an application number and acknowledgement receipt.

In case online, you can view the status of your application by visiting the Revenue and Land Reform portal. For those who applied offline, you will scheduled a visit for the Anchalaadhikari or the right to public service office. 

Nevertheless, whether it be buying a house via loan or savings, a possession certificate is necessary to prove authority. Merely having the project complete doesn’t grant you ownership, with documents like completion, occupancy, and of course, possession certificates being of prime importance.