Possession Certificate
A complete guide to what "Possession Certificate" means in real estate and how it applies to property transactions in India.
Definition
A possession certificate is a document issued by the builder or housing authority confirming that physical possession of a property has been handed over to the buyer on a specific date. It serves as proof of possession for legal, tax, and loan purposes.
Use of Possession Certificate in Real Estate
In India, the date of possession determines the start of many obligations including property tax liability, home loan interest deduction eligibility (pre-construction interest is deductible in five equal instalments from the year of possession), and the five-year structural warranty under RERA. Buyers should insist on a formal possession letter with the exact date and obtain it on the society's letterhead.
Key Takeaway
Understanding "Possession Certificate" is essential for making informed real estate decisions. Always consult a qualified professional for advice specific to your situation.
Disclaimer: This glossary is for educational purposes only and does not constitute legal or financial advice. Definitions may not reflect the most current regulatory changes. Please consult a qualified professional for guidance specific to your transaction.