A possession certificate is a legal document that is produced by the seller of the property in the name of its new owner. It states that all the property rights have now been transferred to a new owner. An important part of this document is the timeline for final payments that the new property owner must adhere to.
In the urban areas, it is issued by the Revenue Divisional Officers (RDOs). Meanwhile, it is issued by the local Tehsildar for the developers in the rural area. This document is an important part of the property buying/selling process.
The process to apply for a possession certificate online differs from one portal to another. To understand the stages of application, let us take the example of Andhra Pradesh’s MeeSeva Portal.
Step 1: Visit the official MeeSeva portal and register yourself as a new user (if not already registered).
Step 2: Log in to your MeeSeva account and click on ‘Revenue’.
Step 3: Now click on ‘Possession Certificate’.
Step 4: Fill out your personal details and the details of the property you wish to obtain the possession certificate for in the form that opens.
Step 5: Upload the scanned copies of all the required documents.
Step 6: You will now be redirected to the payment page. Make the required payment using the method of your choice.
Step 7: You will receive an acknowledgement along with an application number which you can use to track the status of your application.
Step 8: Your property will be inspected by a technical officer and shall further be reviewed by higher authorities and the city planner.
Once the review process is complete, you can easily download your possession certificate from the MeeSeva portal.
You can easily track the status of the possession certificate of your property. However, the process may vary from one portal to another. Continuing with the previous example, here is how you can check the possession certificate status on the MeeSeva portal.
Step 1: Log in to your MeeSeva account
Step 2: Select the ‘Know Your Applications Status’ option on the home page.
Step 3: Now enter your application number and click on ‘Track Application Status’.
You will be able to see the status of your application on your screen.
Given below are the list of documents required to acquire a possession certificate:
Current Proof of Property or Land Tax paid
Identity Proof of Ownership of Property
A copy of Encumbrance Certificate
Two Clear Passport Size Photo
Clear Photo of the building/property/land
Copy of the registered lease and/or sale agreement of the property
A possession certificate for home loan gives its holder the following rights related to the land:
Complete authority over the property and the right to do anything they wish to with it.
The right to resell the property.
Right to enhance the property or increase its market value.
Right to rent out and obtain profits from the property.
The right to bar sellers from claiming the benefits arising from the property.
Until the seller declines to accept property delivery, the buyer has a charge on it. This implies that the buyer can ask the seller for the money paid in anticipation of property delivery.
The right to be reimbursed the paid amount to impose the performance of the contract if the seller fails to deliver the property.
The right to access all of the building plans and other documents related to the property from the regulatory authorities
A possession certificate assures that the possession of a property has been successfully transferred from one owner to another.
A possession certificate is required to claim tax deduction. You can claim tax deductions for the interest paid on a housing loan after possession in five equal instalments.
Yes, you can claim tax exemption on the interest paid on home loan for a property that is still under construction.
If you are a builder who wants to obtain a possession certificate for your newly-constructed property, you must submit below mentioned documents to the concerned authority:
A copy of the building sanction plan.
A copy of the Commencement Certificate in the building’s name.
A copy of the building completion certificate.
A copy of a No Objection Certificate (NOC) from either the pollution board or the Airport Authority.
A conditional possession letter can be used when a buyer is not entirely satisfied with the property. The buyer can submit their complaints and grievances to the builder/seller with the possession letter. The developer has to make the necessary changes as per the agreement. It can be on account of aspects like improper construction, usage of poor-quality material for construction, etc.