A Guide to Difference Between a Possession Certificate and an Occupation Certificate

Real estate buyers get into real estate transactions without full knowledge of the required documents and applicable laws. It is very important for the owners and the buyers that they are aware of the necessary documentation needed to complete the transaction. The possession certificate is one such important document required while buying a house. It ensures that the possession of a property has been transferred lawfully, and the buyer holds all the rights to the property.

However, alone the possession certificate does not affirm the rightful owner of the property; an Occupation certificate is needed, which is issued by the local authorities after the construction has been completed on the property.

Occupation Certificate

It is a document that is issued by the local government agency of planning authorities after the completion of contract construction of a new project. The certificate is proof that the project has been built by adhering to the applicable building codes, relevant regulations, and local laws. It is the responsibility of the developer to obtain an occupancy certificate once the project has been completed.

It is a mandatory document that shows your ownership of the property; without the Occupancy Certificate, the property can be deemed illegal by the local municipal body.

The certificate indicates that the building is suitable for occupancy. The certificate is required when applying for water, sanitization, and electricity connection.

A buyer should ask for the occupancy certificate before buying any property and a possession certificate that shows the transfer of such ownership right.

Possession Certificate

It is a document that shows the transfer of possession of property from the owner to the buyer, which signifies that all the interest in the property has now been transferred to the buyer upon payment of the required amount. The possession certificate states the date of possession. It is issued by the Tahsildar in rural areas and the Revenue Divisional Officer (RDO) in urban areas. The certificate also contains the timeline within which the buyer has to make the final payment.

The possession certificate is an important document in the purchase of a house; it shows that the land has been legally sold to the buyer. Who owns all the property rights without this, the buyer holds no authority on the property, and the ownership of the property lawfully remains in possession of the Builder.

The possession certificate is issued within 30 days after the building has been constructed in compliance with the accepted plans and local laws.

The Builder issues the possession certificate, which indicates a change in ownership that has been transferred to the purchaser. The developer signs the declaration above that the property no longer lies with him, and the buyer signs of taking over the property. The

the certificate shows and guarantees that the purchaser is only interested in the property.

Land Possession Certificate

A possession certificate for land is a legal document that states that you have legal possession of a particular land. It is an authentic document that is issued for possession of a particular land. The certificate is issued in the name of the possessor of the land.

A possession certificate is different from an occupation certificate as it proves possession of land, and an occupancy certificate proves occupation of land.

Difference between Occupancy Certificate and Possession Certificate

• The occupancy certificate shows the property is fit for occupancy; the possession certificate shows a claim of possession on a particular property.
• An occupancy certificate is issued by the local authority, which shows that the project has been completed following all the construction norms and building bye-laws and is ready for occupancy.
• A possession certificate is issued by the developer or the seller, which proves the transfer of ownership rights. The date of possession of the property by the new buyer is mentioned in the certificate.
• The occupation certificate gives you the right to property, whereas the possession certificate shows proof of transfer of such property to the buyer.

Online Issue of Possession Certificate

Online issue of possession certificate for a property can be e obtained from the department of the government of the state in which the property is located; one can file an application through e district portal of the concerned state to obtain a position certificate online accompanied by the prescribed fees and supported by the required documents.

Documents required for obtaining a Possession Certificate

You have to ensure you receive the below-listed documents from the Builder, the original and photocopy of all before the possession certificate is issued

Encumbrance Certificate –

it ensures the property is free from any monetary and legal liabilities.

Commencement Certificate –

it is issued by the authority after the speculations in the intimation of disapproval are fulfilled.

Occupancy Certificate –

it is issued by the local authority, which shows the construction has been done according to the local laws.

No Objection Certificate –

it is a written proof that a project has received appropriate approvals from all relevant Govt. departments.

Completion Certificate –

which shows the project has been constructed as per the required norms and regulations. It is a legal document that contains all the details of the property, as the owner’s location size of the building.

Joint Development Agreement –

which shows if there is any joint party e responsible for the development of the project building plan approval, it is approved by the local authority, which shows the building is a legal construction allotment letter and letter of no dues from the Builder.

Document to be collected after possession –

After taking possession of the land, you must obtain

• The Conveyance deed this document shows the transfer of rights over the land to the owner
• The possession certificate which the Builder produces at the time of possession of the land.

Other important documents such as land due certificate, conversion order, details of electricity, water and power backup, agreement by maintenance agency, car parking allotment details, receipt of property tax paid by the seller, and transfer certificate.

In India, Possession in property laws amounts to evidence of ownership. If a person is in adverse possession of any property for 12 years or more, then he becomes the legal owner of that property, and the original owner rights cease to exist. It is a possessory remedy that is recognized under the law.