Possession Certificate: Meaning, Importance and Application Process

A possession certificate is an official document that confirms legal possession of a property. It is issued by the local municipal authority or land revenue department and is required for property-related transactions, Home Loan applications, and tax purposes.  

Read further to explore what a possession certificate is, why it is important, what documents are required, and how to apply for it. 

What is the Meaning of a Possession Certificate?

A possession certificate serves as proof that a property has been legally handed over from the seller (builder or previous owner) to the buyer. This document is issued by local authorities and is necessary for verifying ownership, updating government records, and paying property taxes under the new owner’s name. 

It is particularly important for landowners, homebuyers, and financial institutions as it legally establishes the owner's right over the property. 

Importance of Possession Certificate

Obtaining a possession certificate is essential for: 

• Legal Ownership Verification: Confirms that the property is now in the possession of the new owner 
• Home Loan Applications: Financial institutions may require this document for processing Home Loans 
• Property Resale and Transfer: Required for selling or transferring property ownership 

Documents Required for Possession Certificate

To apply for a possession certificate, the following documents are generally required: 

• Ration Card – Proof of identity and residence 
• Aadhaar Card – Identity verification of the applicant 
• Income Certificate – Required for government verification purposes 
• Proof of Property Tax Payment – Latest receipt of tax paid to the local authority 
• Proof of Property Ownership – Sale deed, title deed, or property registration document 
• Encumbrance Certificate (Form 15) – Confirms the property is free from legal liabilities 
• Two Passport-Sized Photographs – Required for application records 
• Photographs of the Property – To confirm land or building status 

Note that some states may require additional documents depending on their regulations.  

Types of Possession Certificate

There are two main types of possession certificates, based on the issuing authority: 

1. Builder-Issued Possession Certificate 

• Provided by the builder after full payment and handover of the property 
• Required before applying for an Occupancy Certificate 
• Used primarily in private housing projects 

2. Government-Issued Possession Certificate 

• Issued by local authorities for properties under government land allotment schemes 
• Required for official land ownership verification and government records 

Difference Between Possession Certificate, Occupancy Certificate, and Completion Certificate

The following table compares the possession certificate, occupancy certificate, and completion certificate: 

How to Apply for a Possession Certificate?

To obtain a possession certificate, follow these steps: 

1. Visit the nearest Anchaladhikari Office or Right to Public Service (RTPS) Office and collect the application form. 
2. Fill in the application form with accurate details, including property and ownership information. 
3. Submit the completed form along with the required supporting documents at the concerned office. 
4. Collect an acknowledgment receipt containing an application number for tracking purposes. 
5. Your application details will be verified with land records and other official documents. 
6. If required, a property inspection will be conducted by a government officer to confirm possession. 
7. Once verification is complete, the concerned office will issue your possession certificate. 

Some states allow online applications for possession certificates through their land records portal. Applicants may also need to pay a processing fee, which varies based on state regulations. 

Conclusion

A possession certificate is a vital document for homeowners and landowners, serving as proof of legal possession and facilitating property-related transactions. Whether you are applying for a Home Loan, paying property taxes, or selling your property, this certificate ensures a smooth and legally compliant process.