Understanding it ensures that the property owner may enjoy all their rights to the land without any obstacles. While buying a property, a possession certificate is one of the documents you must obtain. So, let us understand in detail the land possession certificate, its meaning, importance, and the rights conferred by it.

What is a Possession Certificate?

A possession certificate is a document that proves that the builder or developer has delivered physical possession of the property to the concerned buyer. This certificate’s main purpose is to establish that the builder has completed all construction work as per approved plans and has handed over the unit/flat/shop to the purchaser in good and livable condition.

A possession certificate from the builder authorized by responsible parties is required before delivering possession of any property to buyers.

Importance of Possession Certificate

A Possession Certificate (PC) is one of the important documents that attest to the legal ownership of a property. It is typically issued by the builder or developer of the property and serves as proof of being the rightful owner of the property. A PC is also generally required when applying for home loans and other financial products related to your property.

Aside from its primary function of establishing ownership, the possession letter also outlines the rights and responsibilities of a property owner. For instance, it will specify the date on which the buyer is legally allowed to take possession of the property and any terms and conditions that the builder or developer has set.

Possession Certificate and its terms

  • The land possession certificate indicates that the buyer/s is/are handed over physical possession of the property and guarantees that he/she/they will benefit from the property’s interests.
  • After the sale, the advantages of the property cannot be claimed by the seller.
  • That the buyer has complete ownership of the land and is free to do whatever he wants as long as it’s legal.
  • The Buyer shall abide by the use of the property and not change the use of the property without following due process of law.

Documents Needed for Possession Certificate?

There are various important documents required for the Possession Certificate for a home loan, such as:

  • Agreement of sale between the developer and the buyer.
  • Allotment letter issued by the developer.
  • Copies of receipts of payments made by the buyer to date.
  • Approved layout plan and building plan.
  • No Objection Certificate (NOC) from the pollution control board, if necessary.
  • The completion certificate is issued by the architect or structural engineer.

The Bottom Line

A possession certificate from the builder is a document that shows that the possession of the premises/property has been handed over to the purchaser. The certificate also helps in availing of loans and other financial assistance from banks and other institutions.

Possession certificates are useful in the resale or subsequent sales of the property since it is easy to transfer ownership once the property is in the occupancy of the person who is making the transfer.

The purchaser has the right to ask for information on authorized plans, the timetable for implementation, layout plans for the entire building, and other essential papers thoroughly reviewed and approved by the relevant authorities.



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