What is a possession letter?
A possession letter is the builder’s letter that offers or records the handover of a flat to the buyer, with the possession date, the final dues and the documents handed over.
Also called offer of possession, possession certificate.
There are usually two letters, and it helps to keep them apart:
- Offer of possession: sent once the flat is ready and the occupancy certificate is in hand. It asks the buyer to clear the final dues and fixes a window to take the keys.
- Possession letter: issued on the day the buyer takes the keys. It records the date, the unit, meter readings, keys and documents handed over, and any snags still open.
Banks ask for the possession letter before the final loan disbursement, and buyers need it for utility connections and, in many cities, property tax registration.
Before issuing it, a builder should check that the final demand, interest, maintenance deposit and any maintenance corpus are paid or formally agreed, and that the snag list is signed off.