What is possession letter?
Also called: offer of possession, handover letter, kabza patra
The developer's letter handing over, or offering, physical possession of your flat once it's ready and dues are paid. It only counts as a valid offer if the project already has an occupancy certificate.
Two different documents get called a possession letter. The first is the offer of possession: the developer writes to say the flat is ready and attaches a final demand, typically the last instalment, a maintenance advance, IFMS, electricity meter charges and the stamp duty for the conveyance. The second is the possession certificate or handover letter you sign when you collect the keys, recording the date and the condition of the flat.
The date on that letter matters more than most buyers realise. The five-year structural defect liability under Section 14(3) of RERA runs from the date of handing over possession. Delay interest under Section 18 is worked out up to the date of a valid offer. And Section 19(10) expects the buyer to take possession within two months of the occupancy certificate.
'Valid' is doing a lot of work there. An offer of possession made without an OC isn't a lawful offer, and RERA authorities and consumer commissions have repeatedly held that delay interest keeps running until possession is offered with the OC in hand. Buyers in Gurugram and Noida who accepted 'fit-out possession' in towers still awaiting an OC have found that out the hard way.
Before you sign the handover, walk the flat with the builder's representative. Note seepage, hollow-sounding tiles, uneven plaster, loose railings and missing fittings in writing and get the list countersigned. A bare 'received in good condition' line makes a later complaint much harder.
A Ghaziabad builder offers possession in March 2026 with an OC dated February 2026 and a final demand of ₹6.4 lakh. If the agreement promised possession by June 2024, the buyer can ask for about 21 months of delay interest to be adjusted against that demand before paying.
Paying the final demand and moving in before checking the OC on the development authority's website. In a tower without one, utility connections, the last loan disbursement and any future resale all get harder.
Questions people ask about possession letter
Is a possession letter proof of ownership?
No. It shows you've taken physical possession. Ownership passes with the registered sale or conveyance deed, which you should press the builder to execute soon after handover.
What happens if I delay taking possession?
After a valid offer with an OC, maintenance usually becomes payable from the offer date, and the agreement may provide for holding charges. Courts have struck down holding charges in some cases, so read what your agreement actually says before paying them.