How Does a Possession Certificate Help to Claim Ownership Rights on a Property?

A possession certificate is a legal document issued to property buyers by sellers. It confirms that a property has been transferred successfully from one owner to another, showing that a buyer and a seller has complied with all the terms and conditions stated in the contract for sale. In rural areas, this certificate is usually issued by Tehsildar, and in an urban region, it is issued by the (RDO) Revenue Divisional Officer.

Thus, before applying to obtain this legal property document, property buyers should know how this certificate can work in their favour.

Know The Importance of Possession Certificate

The certificate of possession reflects the change of ownership of a property. This certificate allows a buyer to claim official ownership of a particular property. Furthermore, this document is an essential one that an individual will have to submit while availing of a credit option from a lender against a property, such as a loan against property.

Moreover, this property document holds the timeframe for borrowers to complete their payments. Also, it consists of details of a property and additional amenities that buyers will get with it.

The rights on a property cannot be transferred to another buyer without a possession certificate as the property ownership still resides with the builder. Thus, builders signing the possession certificate suggest that property ownership doesn’t rest on them. 

Now that individuals know the possession certificate’s meaning, they should know how to get one.

Know The Rights on A property of a Possession Certificate Holder

A possession certificate allows an individual to exercise the following rights:

  1. A certificate of possession confirms an individual’s complete authority on a particular property and utilise this property anyway as per his/her wish.
  2. Property holders have the rights on a property to resale it. Moreover, property buyers can improve the property condition and increase its market value as they deem fit.
  3. Also, buyers will be reimbursed with the money and cost in court to impose specific performance of the contract if sellers have not handed over the property.

Furthermore, a property possession certificate encompasses details like structure type, structure plan, civic amenities etc.

Steps to obtain a possession certificate

The particulars of obtaining a certificate of possession for a property differs from state to state; however, the overall process remains the same. One acquires a possession certificate by following the below-mentioned steps:

Step 1: Firstly, visit the official portal of the state government’s Revenue and Land Reform Department and download the application form.

Step 2: Now, fill out the entries with relevant personal and property details and attach relevant documents.     

Step 3: Finally, submit the form to the concerned department.

After submission, the buyer will get an application number and an acknowledgement receipt, helping one track the status of possession certificate online on the Revenue and Land Reform Department’s website. Buyers will be given a date when they have to visit the Right to Public Service (RTPS) office for collecting this document.

Apart from downloading application forms online, property buy can obtain possession certificates offline by visiting the nearest Anchaladhikari office or RTPS (Right to Public Service).

Documents required for obtaining possession certificate

Property buyers are required to keep the following documents at the ready while acquiring a possession certificate.

  1. KYC papers
  2. Proof ownership
  3. Income certificate
  4. Encumbrance certificate
  5. Related photograph of the property
  6. Latest property tax receipt
  7. Copy of the application form
  8. Sale deed agreement
  9. Copy of registered sale agreement

All these documents inform the government regarding the ins and outs of property and its legal status.

Possession and occupancy documents constitute a part of essential documentation required to avail credit options like loan against property. However, borrowers should also be well acquainted with the list of documents while applying for a loan against property.

A loan against property can help debtors to dodge financial crisis; however, borrowers should know certain things before applying for a loan against property.

Borrowers can also check out the pre-approved offer propounded by several leading financial institutions on financial products like loans against property, home loans etc. These offers simplify the loan application and save time. Willing individuals can check their pre-approved offers by submitting their names and contact details.

To sum up, a possession certificate ensures that the rights on a property is possessed by an individual without any illegal means, allowing the property owner to benefit from its ownership.

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