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  • What is Possession Certificate?

    Possession certificate or letter is an important document that the seller has to produce to the buyer stating the date of possession. It’s issued by the Tahsildar in the rural areas and RDO (Revenue Divisional Officer) in the urban areas. You can also use this letter to secure a home loan from a bank. The certificate also consists of the timeline within which the buyer has to make the final payment.

    What is a Conditional Possession Letter?

    Let’s say you are not content with the property though the building is in your possession. The dissatisfaction could be due to poor quality of the property, faulty construction, and unfinished work, among others. In such situations, you can get a conditional possession letter and write your grievances on the builder’s copy of the letter.

    You can provide all the details pertaining to your dissatisfaction regarding the property and ask the builder to make necessary changes as per the agreement. If the builder fails to comply, you can take the matter to court.

    What is an Occupancy Certificate?

    Possession letter won’t affirm you as the rightful owner of the property. You will need to get an occupancy certificate for that. This certificate is issued by the local authorities certifying that the construction work has been completed as per the approved plan and the building is ready for occupation. It also states that the property has been constructed in adherence to the local laws.

    It’s a mandatory document that affirms your ownership of the property. If you don’t get an occupancy certificate, the local municipal body can deem the property as illegal.

    What is the Difference between Possession Certificate and Occupancy Certificate?

    A possession certificate states the property completion date. It doesn’t make you the rightful of the property. On the other hand, an occupancy certificate is issued by the local authorities stating the completion of the project and that the building is fit to be occupied. Also, this certificate gives you the right to the property.

    How do I get a Land Possession Certificate?

    Different states have different procedures for obtaining a land possession certificate. For illustration purpose, let’s see how it works in the state of Bihar.

    Step 1: Visit your nearest Anchaladhikari office or Right to Public Service (RTPS) office and get your application form.

    Step 2: Alternatively, you can download the form from the Revenue and Land Reforms, Government of Bihar website (http://lrc.bih.nic.in/).

    Possession Certificate

    Step 3:?Fill in the application form with the required details.

    Step 4: Attach all the required documents and submit the form to the concerned office.

    Step 5: After that, receive an acknowledgement receipt along with an application number, which you can use to check your application status.

    Is Possession Certificate Required to Claim Tax Benefits?

    Yes, you need to provide the possession certificate to claim tax benefits.

    FAQs:

    1. How much time does it take to obtain the certificate?
    2. Though the timeline varies from state to state, once you submit the application form a verification will be conducted under the supervision of the concerned officer. If everything goes right, upon verification you will usually get the possession certificate within 7 days.

    3. Who is a Tahsildar?
    4. A Tahsildar is a gazetted officer who is in charge of the matters related to land, tax, and revenue. In order to get a possession certificate in rural areas you have to approach the concerned Tahsildar’s office.

    5. Is there any fee that I have to pay?
    6. Yes, there’s a fee that you have to pay which varies from state to state. The fee is based on the group or category, like below poverty line, above poverty line, and SC/ST, you belong to.

    7. What documents do I have to submit?
      • Copy of registered lease and sale deed agreement
      • Ration card
      • Copy of encumbrance certificate
      • Identity proof
    8. What happens if I don’t have a possession certificate?
    9. If you are planning to get a home loan, you will need a possession certificate. Also, the certificate lets you claim income tax deductions. On the other hand, if you don’t have this certificate, your possession of the property will be considered illegal by the local municipal party.

      

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