Once the building receives its occupancy certificate, the developer sends an offer of possession with the final demand: the balance price, maintenance, corpus, utility deposits and registration costs. After payment and an inspection, the buyer receives the possession letter and keys.
Under Section 19(10) of the RERA Act, an allottee must take physical possession within two months of the occupancy certificate being issued. The possession letter is also used to apply for utility connections, to claim interest on a home loan, and to start the defect liability period.
A possession letter without an occupancy certificate is a red flag. Buyers should ask to see the certificate for their tower before accepting keys.
Example
A buyer of a ₹1.1 crore flat in Chennai receives an offer of possession after the occupancy certificate is issued. She pays the final 5%, the corpus fund and advance maintenance, inspects the flat with a snag list, and collects the possession letter and keys. She uses the letter to transfer the electricity connection to her name.
Figures are illustrative, not market rates.
Questions about Possession letter
What should I check before accepting a possession letter?
That the occupancy certificate covers your tower, the carpet area matches the agreement, the snag list is recorded, and the final demand has no unexplained charges. Note defects in writing, because the defect liability period runs from possession.
Is a possession letter the same as an offer of possession?
Not quite. The offer of possession invites you to pay the final dues and take the unit. The possession letter confirms that possession has actually been handed over on a stated date.
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