Importance of Possession Letter and Occupancy Certificate for Homebuyers


Home buying the biggest investment

There are many home buyers, particularly first-timers who are unaware of the documents required while purchasing a home. Apartment owners often ignore the important documents required when they take over an apartment. The 2 very important documents are, possession letter and occupancy certificate.


Let us check the importance of both the documents

Possession letter, this letter is issued to the buyer by the developer mentioning the completion date of the house. You require both the possession letter and occupancy certificate to get all rights in the unit, as well as on the amenities provided by the residential complex. This letter will also be required when one applies for a home loan. Banks and financial institutions also check the possession letter, before accepting the loan application for a resale flat.

Conditional possession, sometimes buyers are not happy with faulty construction of the property, use of different material other than mentioned in the documents, delay in handling over completion certificate. In such situations, buyers have to take the possession of the building, accept the conditional possession letter and write the same on the builder’s copy. It can be mentioned that, conditions not met by the builder. With this one has the right to take the builder to the court, if the conditions are not met.


Occupancy certificate, is the certificate with the proof of building’s completion as per the approved plan. Everyone, must ask for the document from the builder before moving into a new home. This is also required when applying for water, electricity connection and sanitation.  Occupancy certificate needs to be collected from, the local town planning authority when, the construction has been successfully completed and, it is in suitable condition to live in.

One requires the occupancy certificate while taking a home loan for a resale property, to re-sell the flat and, to take utility connections. It is very important to ask for it from the builder. Even if the building has all the connections, the municipal authority can disconnect it at any time, if one does not have the occupancy certificate.

Another situation a home buyer faces is

Possession letter without occupancy certificate, if the builder is not providing the occupancy certificate, one has the right to refuse to take the possession. The home buyer can also approach consumer forum, or file an RTI inquiring whether the builder has applied for completion certificate or not.


The home buyer should always make sure that, he has all the documents with him while taking over the property. He has the legal right to get all the property related documents. “The ache for home lives in all of us, the safe place where we can go as we are and not be questioned”.

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