What are Possession & Occupancy Certificates?

Date: 2-September,2021Last Updated: 26-September,2022
+A   -A

Possession Certificates and Occupancy Certificates are two important documentation that every home buyer must possess. However, there are some of us, who does not know about them in detail.

So let's explore these two!

What is a possession certificate?

A possession certificate is a document that is produced by the seller while selling real estate to a customer stating the date of possession. The possession certificate is issued by gazetted officer or tahsildar in the rural area and RDO(Revenue Divisional Officer) in urban areas. One can use this document while applying for a home loan from a Bank. The possession certificate also contains the timeline of the final payment that has to be paid by the buyer.

Excluding the former one, there are 2 other types to the possession certificate. They are a Conditional possession certificate and occupancy certificate.

What is a Conditional possession letter?

A conditional possession letter is a document through which the buyer can state his dissatisfaction with the builder asking for the renovation of the real estate or redesigning the infrastructure according to his desire. To put it simply, let's say you aren't satisfied with the property through the property is in your possession. This dissatisfaction could be anything. Varied from the bad integrity of the property, inadequate construction, or defective work. In those circumstances, you can get a conditional possession letter and Relay your dissatisfaction with the builder's copy of the letter.

In the letter, you can put all the necessary details you want to change about the infrastructure and ask the builder to make those necessary changes. If the builder fails to fulfil those details, then you can take the matter to court.

How to get a possession certificate?

Local authorities issue the possession certificate after examining the premises whether it has been made according to the approved plan or whether it is breaking any local laws. If there is none, then it's likely to be issued within seven working days.

It is issued by the local authorities to the buyers.

Necessary credentials that are needed to issue possession certificate

To obtain a possession certificate, you have to submit the following documents:

  1. Project commencement certificate.

  2. Project completion certificate.

  3. Latest property tax receipt.

  4. Copy of the approved plan

What if you don't have a possession certificate while buying a real estate

Without the proper certificates, you won't be able to exert your right over the property as there has been no proper transfer of possession, and you have no right to inhabit or use the property for any purpose. The absence of a possession certificate signifies that the property is still legally under the possession of the builder. Where the buyer is inhabiting illegally, in such circumstances, the buyer can be asked to move out from the property by the local civil authorities.

Is registration for possession certificate necessary?

A possession certificate is required to obtain few particular benefits of the Government Subsidies like Tax subsidies and more. In order to obtain those benefits, the possession certificate needs to show that the possession of the house lies with you.

What is an occupancy certificate?

A possession certificate won't verify you as the rightful owner of the property unless you get an occupancy certificate. An occupancy certificate implies that you are the rightful owner of the property. In the Indian real estate business, it's mandatory to have an occupancy certificate. If you don't have one, then the local municipality board can give judgment on the property as an illegal asset.

This documentation or certificate is issued by the local authorities that are the local municipal authorities, witnessing that the entire construction work has been completed as per the consented plan and the building is ready for occupation. It also implies that the property has been constructed in support of the local laws.

Difference between Possession certificate and occupancy certificate

A possession certificate implies the completion date of certain properties, or it states that the property is possessed by you. It doesn't confirm you as the rightful owner of the property. Likewise, on the other hand, the occupancy certificate states the completion of the project as it states the building is ready to be occupied. It also states you as the rightful owner of the property.

How to get an Indian real estate occupancy certificate?

In every state of India, the process of issuing occupancy certificates is different from each other. In Karnataka, an occupancy certificate is issued by a statutory authority. Such as BBMP(Bruhat Bengaluru Mahanagara Palike) or BDA(Bangalore development authority).

In Karnataka, As required by the law, all builders and developers in the state are supposed to register their ongoing projects with Karnataka RERA(Real Estate Regulatory Authority).

Importance of the Occupancy Certificate

You should get hold of the occupancy certificate and possession certificate before buying a home. They are essential when you decide to sell your house or mortgage. Every buyer should buy a property only after the completion of necessary documents. Because without the occupancy certificate, the local authorities can deem the property as illegal.

Necessary documents needed to issue occupancy certificate

Submission of the necessary documents along with the application to obtain occupancy certificate:

  1. Commencement Certificate

  2. Completion Certificate

  3. Built and Section plan

  4. Photographs of the completed building

  5. Tax assessment with tax paid receipt

  6. Copy of the approved plan

What if the developer fails to give you an occupancy certificate?

If the builder refuses or fails to provide an Occupancy certificate, you can take legal action against the builder. Legitimate notice can be issued, asking him to provide the Occupancy certificate, or you can even take the case to the consumer court.

The real Estate Regulation & Development Act (RERA) is expected to notably minimize the instances of such fraud by builders or the seller. However, as the property owner, you have a lookout for such fraud, or you need to ensure that all the important documents are within your grasp, to secure your right over your property.

Is it Necessary to have an Occupancy certificate?

Yes, it is necessary to have an occupancy certificate of your real estate. As the law states, you cannot legally move into a building until the builder gets an occupancy certificate from the respective local administrative. Failing to obtain an occupancy certificate can be resulted in facing penalties by the local administration.

Did we help ?

Post Response



Latest Blogs

Why Read Real Estate Blogs?

Well, we are aware that real estate has never exactly been one of those binge-worthy blog categories. It has neither been the kind of topic you could not get enough of, nor is it half as juicy as celebrity gossip.

However, in India, real estate blogs are starting to get clicks and likes, and it has become one of the trending topics. People worldwide are beginning to realize how real estate as an industry affects the economy and how important it is to understand housing trends to enhance their lifestyle.!

The relevance of informative Indian blogs on real estate and finance are at an all-time high now. The youngsters are bidding big on investment options, and brackets such as realty have proved to be highly dependable compared to others.

The Millennials are flooding in to invest in apartments, plots, and villas, and the earliest members of the Gen-Zs' entering the workforce and looking forward to having their own homes. This has only fuelled the growth of digital real estate blogs to keep up with the tech-savvy generations.

Also, the real estate sector has been proving time and again, how reliable an investment choice it is. So, learning about the sector is the smart way to climb up the ranks, and where else can you learn so much except from real estate Blogs! Real estate is the second-largest contributor to the country's GDP; hence there is no doubt that it affects every one of us, whether we see a future in the Real Estate Industry or not. After all, we all live in our homes, and housing is a significant part of the industry.

What sets India's favorite Homes247.in Blog Posts apart?

We know exactly what you need to know and what you like. We know you want to feel engaged and entertained, and at the same time, hot housing news should be fed to you! We have turned the tables, grab a spoon, and start digging!

And Voilà! We present to you the most Interesting and Informative blogs!

As our name implies, we are not limited to realty alone, granted we do Specialize in it. We are all about Homes, and we are in love with Tech and Innovation! Naturally, our blogs cover a myriad of topics related to real estate and housing from Luxury, Lifestyle, Home Decor, Vastu, Real Estate News, Reviews, Tech & much more!

We make every one of our real estate blogs as interesting as it can get and attach with absolutely unique and accurate images, to provide you a better understanding. Not only do we cover a wide range of topics, but we also cover them at the right time. We update you on our socials such as Facebook, Instagram, Linkedin, Pinterest, and Twitter on every trending topic, so you are never miss anything and worry about being left behind!

However, we never go out of hand with our Indian real estate blogs that our beloved Readers have come to love over the years.

What is the Importance of Real Estate Blogs?

Everything in India is a state of constant flux; maybe that's why we Indians became one of the most adaptable and cosmopolitan people in the world!

If the nation's elements are shifting its focus, how can real estate be any different? Indian Real Estate Sector is perhaps one of the most dynamic ones in the entire world. Since the Real Estate in India is yet to be organized entirely, the variations in one segment affect another in ways difficult to comprehend.

The complexity and nuances can be understood only by reading about what is going on in the sector. Like we mentioned above, it affects every one of us. Hence it is essential to keep up to date.

With its ever-changing shifts and tides, it's virtually impossible to keep track of the sector's latest trends and sink our anchor deep. That's where we come in! We are just one google search away!

We also try to solve every home-related query through our Indian real estate blogs. And that's not all. We provide you insights on technologies that make the modern taste and rate of development possible, detailed analysis on real estate projects, insights on loans and taxes, advice on the home buying process, and articles on health and fitness. We provide you information about the trending topics in the Indian real estate industry.

We also host video podcasts named Expert's Voices, where we discuss with the leading players in the industry about market scenarios, offers, anything and everything related to real estate.

In addition, we host Real Estate News so you can stay updated on the sporadic events that happen around the country concerning Indian Real Estate. We also make short and easy to understand real estate video blogs.

We have got so many topics to read about that even if you have years of experience or are just curious and googling to get some ideas about Indian real estate blogs, you will find the best ones here.

At Homes247.in, we strive to provide you only the best real estate blogs. Our blogs are always entertaining; even the dullest subject we touch upon, we try to make it engaging. We make sure the best of the best is are the only standard we keep ourselves at when it comes to our service or our Indian real estate blogs.

Our team is made of a dynamic group of keen hands-on expert researchers who work tirelessly along with passionate and knowledgeable content writers to bring to your fingertips the world of real estate.

On every one of our real estate blogs, we research vigorously, write creatively, carefully compile, and thoughtfully curate the best real estate blogs, especially for you, from India's best content writers and contributors.