But do you have a thorough understanding of the legal documents and the applicable laws for the real estate transactions? Since the real estate value is increasing everyday and a huge amount of money is involved in the property buying process, it’s of grave importance for the investors to be aware of the required documents and the significance of those legal paperwork. As a home buyer if you want to enjoy your property without any legal complications, you have to know your rights as a buyer. The Possession Certificate is one of the crucial documents ensuring your rights over the property and the legality of the same. Today we are going to discuss the importance of this document in detail.
As the name suggests, this legal document certifies the transfer of the possession of the property is legal and the property is now being transferred to the buyer. In other words, the Possession Certificate is a legal document which ensures that the transaction of the property from the first owner to the buyer has been done, maintaining all the applicable laws. This paperwork is important for protecting the buyers’ rights.
This process of transferring the possession of the property and the legal procedure varies from state to state. It is important to check with the local municipal authorities before taking possession of your new home. This certificate is mandatory for staying in a certain property and enjoying all the facilities of the property lawfully. The certificate ensures that the property has been legally transferred to the buyer from the developer, fulfilling all the terms and conditions written in the contract paper. In absence of this document, the builder has a right to evict the possessors as the possession is deemed to be illegal.
Content of the Possession Certificate
The Possession Certificate is issued by the purchaser and this document indicates the change in possession. This certificate clearly states that the possession of the property is now being registered in the name of the buyer and he now has undivided interest in the property. Both the builder and the buyer must sign the same document. The signature of the builder proves that the possession of the property does not belong to him anymore and the signature of the buyer shows the take over of the possession. The certificate also includes details of the property and amenities like parking space, garage etc. as mentioned in the agreement to sale. This document must be authenticated and must clearly mention the actual date of possession.
Conditional Possession Certificate
Under any unfortunate circumstances like pending repair work, faulty construction, usage of different building materials as promised, poor construction quality or the delay in obtaining any legal documents such as Occupancy Certificate or the Possession Certificate, the buyers generally recognize the possession of the property but are not content with the property. In such cases the property buyers accept the Conditional Possession Certificate which explicitly mentions all the aspects that the builder must take care of. This certificate has a provision for the buyers to mention the compensation in case of any delay from the builder’s end and in extreme cases this can be dragged to the courtroom.
Required Documents for the Possession Certificate
The buyers must submit the following documents to obtain the Possession Certificate:
- Copy of agreement to sale
- Copy of registered sale deed
- Identification and verified signature of the applicant
- Certificate of encumbrance
Downside of Not Obtaining the Possession Certificate
The absence of this important paperwork, the legitimacy of exercising the interests in the property is denied as there is no proof of possession transfer from the builder’s end. The buyer is denied his rights of staying in and usage of the property if he fails to procure the Possession Certificate. Without proper certification the possession of the property legally belongs to the builder and with the help of local civil authorities the builder can evacuate the residents staying illegally in that property.
Rights Protected by the Possession Certificate
- It certifies that the buyer has complete authority and full possession of the property, and all the interests can be lawfully enjoyed by the buyer.
- It ensures that the buyer can do anything with the property, abiding by the laws and by-laws of the society.
- Ensures the rights of reselling the property
- Protects the buyer’s rights of raising the valuation of the property
- The buyer can rightfully make changes or improvements in the property, maintaining the legal process.
- The buyer can gain profits by renting out the property.
- It guarantees that after the selling process is done, the seller will not have any claim on the benefits of the property.
- The buyer has the right to claim detailed information related to the sanctioned plan of the property, the duration of the same type, the layout plans of the entire structure along with other necessary documents involved in the process of homebuying.
- The buyer shall be charged to the property and to the seller for all money paid in advance of delivery if the vendor refuses to accept delivery of the goods.
- Moreover, the buyer is also entitled to receive a reimbursement of the amount of the money and the costs awarded to it in courts to impose the specific performance of the contract in the case where the seller has not delivered the property.
- The purchaser has the right to obtain details relating to the plans approved by the respective authority, the schedule of the same type, the entire structure plans, along with other relevant documents.
- Further, unless the seller improperly declines to accept delivery of the property, the buyer has a charge on the property and on the seller for any money paid in anticipation of the delivery of the property.
- Further, in case of failure of the seller to deliver the property, the buyer also has the right to obtain reimbursement for the earnest and for the costs awarded to him in a court to compel the specific performance of the contract.
- It is the right of the buyer to obtain information pertaining to sanctioned plans, the timeline for the same, layout plans of the whole structure along with certain necessary documents as discussed above, which are duly approved by the competent authority.
Possession Certificate is one of the most important legal paperwork which clearly indicates the date of possession. A home loan will not be sanctioned without the original document. However, the qualifications for a legitimate ownership does not depend only on the Possession Certificate. The buyer must be aware of the importance of other documents like the Completion Certificate and the Occupancy Certificate as well. In case you need more guidance, contact an experienced property lawyer. To guide you in the right direction, contact here or email [email protected] with your queries.