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What is a Possession Letter?

A possession letter is a document issued by the developer in favour of the buyer stating the date of possession of the property. It is issued after the developer gets a completion certificate from the designated authority. The letter is drafted on the name of the buyer with the prospective completion date mentioned on it.
A possession letter does not make the buyer the legal owner of the property. For that, the buyer needs to get an occupancy certificate, which not only gives him the rights of the unit, but also access to the civic amenities offered in the complex. The letter also bears the time period before which the owner has to make the final payment and take physical possession of the property.
The original copy of the possession letter needs to be produced for securing a home loan.

Possession Letter – Sample format

What is a Conditional Possession Letter?

Even if the buyers are not satisfied with the property in its totality, they are bound to take the building possession. The reason for dissatisfaction may be the poor construction quality, faulty construction, usage of different material than promised, pending repair work, and delay in offering completion certificate.
In such conditions, the buyer can accept a conditional possession letter for possession of the flat and give his feedback on the builder’s copy of the letter. The buyer can mention all the reasons for accepting a conditional possession letter. The buyer can also ask the builder to make all the changes as per the agreement and can approach the court in case the changes are not made.

What is an Occupancy Certificate?

An occupancy certificate(OC) is a kind of fitness certificate that can be used as proof that the construction of the building is done after following all rules and norms and it is in a habitable condition. Every homebuyer must ask for the occupancy certificate before moving into their new home. After completing the building construction successfully, the builder needs to get his construction inspected and collect the certificate from the zonal planning authority. If a builder fails to get an OC, it is an alarm that he hasn’t met with the construction guidelines as stated in the approval letter.
Even if the building is already installed with all the connections, it is the buyer’s duty to ask the builder to provide an occupancy certificate. Without a proper OC, there is a chance that the municipality authority may discontinue the connections anytime if they find any discrepancy in the building construction process. If the builder tries to offer ownership without a valid occupancy certificate, then the buyer can refuse to take possession. In any such condition, the buyer is free to move to a consumer forum and can even file an RTI inquiry to check if the builder has applied for the OC.
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