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Possession Certificate

Types of Possession Certificate

Last Updated 24th Jan 2022

  • Possession Certificate states the transfer of possession and interest in the property from developer to a buyer.
  • The Revenue Divisional Officer issues Possession Certificate in urban areas and Tahsildar in rural areas.
  • If the buyer is not satisfied with the property, he can mention the conditions in the Conditional Possession Certificate for the builder to fulfil.
  • Occupancy Certificate is the proof of ownership right. It also signifies that the property is ready to be occupied.
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What is a Possession Certificate?

The document possession certificate establishes or proves that the possession of the property has been moved from seller to buyer. It signifies that the property and interest in the property have been transferred to the buyer upon the payment of a certain sum as consideration.

The certificate signifies that the possession of the property has been moved from one person to another. It also serves as a proof that the property is now with the buyer and all the terms related to the agreement of sale has been fulfilled. Tahsildar issues it in rural areas and Revenue Divisional Officer in urban areas.

Conditional Possession Letter

There can be circumstances in which you have accepted the possession of the property, but you are not happy or satisfied with the condition of the property. It can be on account of various aspects like faulty construction, usage of different construction material, poor quality of construction, etc. in such a situation, you as a buyer can accept a conditional possession letter in which all the conditions that are to be fulfilled by the builder will be mentioned.

In a conditional possession letter, you can provide all the details because of which you are dissatisfied from the property and ask the builder or seller to make necessary changes as per the agreement. If the builder fails to comply, then you have the power to take the matter to court.

Occupancy Certificate

Possession certificate is only proof that the interest in the property has been transferred without any illegal action. However, to confirm you are the legal owner of the property, you must acquire an occupancy certificate.

Occupancy certificate is issued by local authorities stating that the property has been constructed as per the local laws and the construction is complete as per the approved plan. The certificate establishes that the property is ready for occupation. It is a mandatory document to affirm your ownership on the property. Failing to get an occupancy certificate can lead to local authorities deeming the property as illegal.

Difference Between Possession Certificate & Occupancy Certificate

The possession certificate only states the completion date and does not make you the rightful owner of the property. The occupancy certificate is issued by local authorities which say that the construction of the property is duly completed and it’s ready to be occupied. It is the occupancy certificate which gives the right of the property to you.

How do I Get a Land Possession Certificate?

The steps to obtain the land possession certificate may vary from state to state. For illustration, you can consider the following steps:

  • First of all, visit the nearest Right to Public Service office or Revenue Divisional Officer or Anchaladhikari and get an application form.
  • You can also choose to download the form online from the respective website of your state.
  • Next, fill the form with appropriate details.
  • After filling the form, attach all the required documents with it and submit it in the concerned office.
  • Upon the submission, you will receive an acknowledgement receipt with application number which you can use to track your application status.


Can I claim income tax exemption on home loan without possession?

Yes, you can claim income tax exemption on interest paid on home loan without possession. It is usually applicable for under-construction property.

What is the importance of possession letters?

The Possession letter states that the property has been transferred to the buyer and such transfer took place in adherence with the rules and laws applicable. It establishes that the buyer has legal possession of the property, and it is also a mandatory document in case the buyer is availing a home loan.

Is Pre EMI eligible for tax exemption?

Pre -EMI is the interest paid on loan. The tax exemption for interest paid during the construction period can be claimed after the construction is complete in 5 equal instalments.

How do I claim interest paid on home loan after possession?

You can claim the interest paid on home loan after possession in 5 equal instalments.

What are the documents needed for a possession certificate?

To get a possession certificate for your property, the following documents are required:

What is the use of a possession certificate?

Possession certificate is the document which transfers the property’s possession from the developer or first owner to the buyer. The document signifies that interest in the property, as well as, the property has been transferred to the buyer upon payment of consideration.

How can I get a possession certificate online?

You can get the possession certificate online by applying through the respective state’s website, filling the application form, attaching the required documents and submitting it.

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