Definition
Possession
Possession is the point at which a developer hands over a completed property to the buyer, who can then occupy or use it.
Possession usually follows the grant of an occupancy certificate and the buyer's clearing of any final dues. It is a critical milestone: the full home loan EMI typically begins around now, rent (if any) on a temporary home can stop, and the warranty/defect-liability period under RERA starts to run.
Delayed possession has historically been one of the biggest grievances of Indian home-buyers, and RERA gives buyers recourse, including compensation for delays beyond the promised date. Buyers should take possession only after inspecting the unit, verifying the occupancy certificate, and documenting any snags for rectification.
Related terms
- RERARERA, the Real Estate (Regulation and Development) Act, is the Indian law that regulates the property sector to protect home-buyers and bring transparency and accountability to builders.
- Under-Construction PropertyAn under-construction property is a home still being built and not yet ready for possession, usually bought from a developer before completion.
- Occupancy CertificateAn occupancy certificate (OC) is a document issued by the local authority certifying that a building is complete as per approved plans and is safe and legal to occupy.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.