Possession Certificate Meaning, Benefits, Types & Know How to get Possession Certificate

April 10, 2024 in Property Guide

Possession Certificate Meaning, Benefits, Types & Know How to get Possession Certificate

A possession certificate is an essential document that provides legal recognition of ownership. It shows the possession rights over a property. It serves as proof that an individual or entity holds lawful possession of the property in question.

When you buy a property, it is important that you check the possession certificate. The real estate developer or seller will provide it to you. In case of any dispute, you can show the certificate to the people concerned. This essentially helps you prove the ownership of the property.

How to Obtain a Possession Certificate?

The issuing authority for possession certificates varies depending on the location. Generally, the local municipal corporation or the revenue department issues possession certificates. Property owners should contact the appropriate local authority to initiate the application process.

Property owners must submit an application to the issuing authority. The completed form should be submitted along with the required documents and applicable fees.

Required Documents and Information

The specific documents and information required may vary. However, some of the generally asked ones are:

  • Photocopies of identification documents such as Aadhaar card, Passport, or Voter ID.
  • Copies of documents establishing the residential address - these include utility bills, lease agreement, or bank statements.
  • Copies of documents that establish ownership – this includes the sale deed, title deed, or property registration documents.
  • A certificate that verifies the property is free from any legal encumbrances or liabilities.
  • Copies of recent property tax payment receipts.
  • Architectural plans or layout drawings of the property.

Tips for a Smooth Application Process

To ensure a smooth application process, property owners should follow these tips:

  • Complete the application form accurately and legibly.
  • Gather all the required documents beforehand to avoid delays.
  • Make sure to carry the original documents for verification, along with the photocopies.
  • Follow up with the issuing authority if there is a delay in processing the application.
  • Seek assistance from professionals or legal experts, if necessary, to navigate any complexities.

Benefits of Possession Certificates

A valid possession certificate offers several benefits. Some of them are:

Legal Protection

Possession certificates offer legal protection to property owners. It safeguards the property owner's interests by establishing a clear record of possession. This reduces the likelihood of disputes or claims by others.

Role in Property Transactions and Disputes

Possession certificates play a vital role in property transactions. It ensures that buyers or tenants can verify the legitimacy of possession. This is done mostly before getting into agreements. Moreover, possession certificates assist in resolving disputes related to encroachments. It can also avoid boundary disputes or unauthorised occupation.

Read Also:- What is Occupancy Certificate, Completion Certificate, & Commencement Certificate

Validity and Renewal of Possession Certificates

You must check the validity and renewal of the possession certificate from time to time. The important information related to the validity and renewal of the possession certificate is as follows:

Validity Period

The validity period of a possession certificate varies depending on local regulations. Typically, possession certificates are valid for a specific duration. This can often range from 1 to 5 years.

Renewal Process

To renew a possession certificate, property owners usually need to reapply. The renewal process may require submitting updated documents. They also need to pay applicable fees and complete any prescribed formalities. It is crucial to renew possession certificates before they expire. This helps to maintain their legal validity.

Requirements for Renewal

The requirements for renewal may vary. You need to provide updated proof of identity, residence, and property ownership. You may also have to provide property tax receipt documents.

Possession Certificates and Land Records

Possession certificates are closely linked to land records. Possession certificates complement them by validating the actual possession of the property. They contribute to determining property ownership and establishing a connection between the legal owner and the occupant. They also assist in avoiding discrepancies or conflicts between ownership claims and actual possession.

Potential Issues and Challenges Faced Without Possession Certificates

If you do not have a possession certificate, there are certain challenges that you are likely to face. Some of the most common ones are as follows:

  • Addressing Discrepancies: If there are discrepancies, property owners should immediately notify the issuing authority. They must do so for proper correction. Providing the necessary supporting documents and seeking legal advice can help address such challenges effectively.
  • Handling Disputes: Property owners should consult legal professionals who specialise in property laws. They can provide guidance and representation to protect the owner's rights. They can also help to resolve any conflicts in a fair and legal manner.
  • Other Issues: Property owners may encounter common issues or challenges with possession certificates. Some of these include delays in the application process. There can also be discrepancies in the information provided on the certificate.
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Possession Certificates and Mortgage/Loan Applications

Possession certificates are relevant to mortgage or loan applications. It helps to establish the lawful possession or occupancy of the property. Lenders often require possession certificates to ensure the property's ownership. It also establishes occupancy status before approving mortgage or loan applications.

Importance for Lenders

Possession certificates provide assurance to lenders that the property is used as collateral for a loan. It must be lawfully possessed by the borrower. They reduce the risk of lending against properties with disputed possession. As a result, it safeguards the lender's interests.

Facilitating Loan Approval

Possession certificates simplify and expedite the loan approval process. They provide conclusive evidence of the borrower's possession rights. Lenders can verify the legitimacy of the property's possession. This ensures a smoother loan application and approval process.

Possession Certificates and Property Taxes

When you are getting possession certificates, there are certain property taxes you will need to pay. It helps in establishing legitimacy. The relation between possession certificate and property taxes is as follows:

Connection with Property Tax Assessments

Possession certificates are used to determine property tax liabilities. They help authorities assess the rightful owner or occupant of a property. It helps to calculate the applicable property taxes based on possession or occupancy.

Consequences of Not Possessing a Valid Possession Certificate

Not having a valid possession certificate can have consequences on property taxes. Authorities may face challenges in accurately assessing property tax liabilities. This leads to potential disputes or discrepancies in tax payments. It is essential for property owners to obtain a valid possession certificate. It avoids any legal complications.

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Possession certificates have become extremely important in today's time. Whether you are going to buy a new property or an old one, make sure to get the possession certificate. It is advisable to consult property developers for more information. Professional real estate developers can help you get the documents. At present, Adani Realty is a reliable name in the real estate industry.

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