There is no dearth of homebuyers in India and other countries. Buying home is more like a ritual than an investment. After a certain age, everyone wants to own a home either from the money they have saved or by way of home loans available from various banks. The process of owning a home is not as simple as it sounds. There are many steps one needs to follow in order to buy a home. Of all the important steps prior to buying a home, acquiring of possession letter and occupancy certificate is equally important and can’t be ignored. Without these two certificates, owning a home is like owning a car without a driving license.
Many of the buyers get confused between Possession Letter and the Occupancy Certificate although each of them is quite different. Knowing the difference is important and an eye opener.
Why is Possession Letter important for homebuyers?
The letter of possession or possession letter is the certificate issued by the builder or a developer to the homebuyer. The letter states of the possession of the home by the buyer after all the terms and conditions have been fulfilled by the buyer. It is also helpful in getting a home loan secured. For this, one has to submit the original copy of the possession letter. In other words, a letter of possession is a letter stating that the property or the home has been possessed with no illegal means. Something that should be noted is the Occupancy Certificate without which the letter of possession would be deemed invalid.
Thus, Possession Letter and Occupancy Certificate go hand in hand. Even after acquiring the Possession letter, one may not be considered a true owner of a home. That’s how important the Occupancy Certificate is.
Why is Occupancy Certificate for homebuyers important?
What is the proof that you have bought a home and you are sole owner? The question is very important to ask yourself. The Occupancy Certificate is the proof or the Completion Certificate that certifies that you are the owner of a property. When the project has been completed by the builder and you have planned to move into your new home or for that matter your dream home, you must get this certificate issued by the builder.
The certificate is a proof that the home is safe to move into and all the guidelines have been adhered to by the builder while completing the project. The certificate is a document that talks about the safety of the apartment and that it is fall resistant.
When building an apartment, the town planning committee sets certain rules which need to be followed in order to construct the building. It is the same local authority that issues the certificate to the builder if the project has been accomplished as per the said guidelines. If not, the local town authority will not certify the project. As a result, you wouldn’t get hold of the Occupancy Letter.
There are other utilities of the certificate too. Let’s know them better.
•If you as a homebuyer are planning to buy a property that is a resale property, you need to ask for the Occupancy Certificate
•If your property is to be re-sold, the new buyer will need the certificate
•It is a proof that the construction was legit and no illegitimate ways were adopted for the faster completion of the project
•Without this OC from the builder, you have all the rights to accept the possession of the home
•It is helpful in getting exemption from income tax if you show the Occupancy Certificate together with the statement of home loan
•Khata Certificate is another essential element while buying a new home. Without an OC, forget about getting one issued
You definitely can drag the builder to the consumer Forum if he fails in providing the Possession Letter or Occupancy Certificate. That is not a concern. What is important is your safety. If you haven’t been provided with the OC for long, it should not stop you from taking an action instantly as it is not anyone else who will suffer but you. The builder not provided with OC from the local authorities means there have been some flaws in the construction and you might be at loss.
You have waited and invested time and money. You deserve to get what you should. The consumer forum process, writ petition, and other legal steps come later. A homebuyer should never step into a home without getting the OC in the form of hard copy.