Possession letter for a new flat: what it must say and what to collect with it

8.6.1 What is a possession letter for a new flat?

A possession letter is a letter from the builder that offers or records the handover of your flat. A builder can send two kinds of letter. An offer of possession tells you that the flat is ready and asks you to take it over. A handover letter, signed at the time you receive the keys, records the date of possession. The RERA Act, 2016 does not prescribe a format or a name for either letter. The Act uses the event instead: the builder hands over “physical possession” of the flat. So the possession letter is a private document between you and the builder. Its value is the date and the facts it records. That date matters under the Act. Section 14(3) counts the five-year defect period “from the date of handing over possession”. Section 11(4)(g) makes the builder pay the outgoings it collected from you until it transfers physical possession. Read the letter with care before you sign it.

Type of letter	What it does	When you get it
Offer of possession	Tells you the flat is ready and asks you to take it	After the OC, before handover
Handover or possession letter	Records that you received the flat, and the date	At handover, when you receive the keys

8.6.2 How is a possession letter different from an OC and a BDA possession certificate?

A possession letter comes from the builder, an occupancy certificate (OC) comes from the city authority, and a BDA possession certificate comes from BDA. The names are similar, so buyers can confuse the three. The OC is the permission to occupy the building. Inside Greater Bengaluru Authority (GBA) limits, the City Corporation grants it under section 241 of the Greater Bengaluru Governance Act, 2024. Section 241(5) says no person shall occupy a building until the Commissioner grants permission. It also allows occupation if the Commissioner does not refuse within 30 days of the notice of completion. So a possession letter without an OC does not make occupation lawful. Seva Sindhu lists the BDA possession certificate for a site allotted by BDA on a lease-cum-sale basis, or under a registered lease-cum-sale agreement. The application fee is nil, the service charge is ₹30 and the service time is 7 days. Its eligibility rule is BDA allotment, so it does not cover a flat from a private builder.

Document	Who issues it	What it shows	Applies to
Possession letter	The builder	The offer or the date of handover of your flat	A flat bought from a builder
Occupancy certificate (OC)	The competent authority (the City Corporation inside GBA limits)	Permission to occupy the building	The building, a tower or a part of it
BDA possession certificate	Bangalore Development Authority	Possession of a site or flat that BDA allotted	BDA-allotted sites and flats only

The OC versus CC guide explains the OC in detail.

8.6.3 What does the RERA Act say about possession?

The RERA Act puts duties on both sides at possession, and most of them start from the occupancy certificate. Section 11(4)(b) makes the builder obtain the completion certificate or the OC, or both, as applicable, and make it available to you. Section 17(1) makes the builder execute a registered conveyance deed in your favour. The builder must also hand over physical possession of the flat and the other title documents. The period comes from local law. If no local law sets one, the conveyance deed is due within three months from the date of issue of the OC. On your side, Section 19(10) says every allottee “shall take physical possession” within two months of the OC issued for the flat. Section 19(3) gives you the right to claim possession of the flat. Section 19(11) makes you take part in registering the conveyance deed. So the OC date starts the clock for both you and the builder.

Duty	Who	Rule	Section
Obtain the OC or CC and make it available	Builder	As applicable under local law	11(4)(b)
Conveyance deed and physical possession	Builder	Within the local-law period, or three months from the OC if none	17(1)
Take physical possession	You	Within two months of the OC	19(10)
Take part in registering the deed	You	When the builder registers it	19(11)
Fix defects you report	Builder	Five years from handing over possession, repair within 30 days	14(3)

If the builder misses the possession date in your agreement for sale, the possession delay compensation guide explains your rights under Section 18.

8.6.4 What must a possession letter state?

A possession letter must state the facts that later prove when, and for which flat, possession passed. No law that Sachi checked sets the contents, so ask for these items before you sign. First, the letter must name you and every co-buyer, exactly as in your agreement for sale. Second, it must give the flat number, the floor, the tower or block, and the project’s K-RERA registration number. Third, it must give the date of possession, because the five-year defect period under Section 14(3) of the RERA Act runs from it. Fourth, it must give the OC reference: the issuing authority, the OC number and its date. This links the letter to the permission to occupy. Fifth, it must list what you received, such as keys and access cards, and any open snag items. If the builder’s draft leaves any of these out, ask for a corrected letter in writing. Keep a signed copy.

Item	Why it matters
Your name and every co-buyer’s name	Must match the agreement for sale and the sale deed
Flat number, floor, tower and K-RERA number	Identifies the flat that the OC must cover
Date of possession	Starts the five-year defect period (Section 14(3))
OC issuer, number and date	Links possession to the permission to occupy
Items received and open snags	Records what is still due from the builder

Before you sign, inspect the flat and give the builder your snag list. The snag list guide explains the inspection step by step.

8.6.5 What do you collect with the possession letter, and who asks for it later?

Collect the possession letter together with the OC, the registered sale deed and your payment records, because each proves a different fact. The possession letter proves the date you received the flat. The OC proves that the building may be occupied. The sale deed proves your ownership. Your receipts and the final statement of account prove what you paid. Section 19(6) of the RERA Act makes you pay your share of maintenance and other charges. You pay them as your agreement for sale sets out. The snag list guide lists the full set of handover papers. The OC matters for services too. Section 246(5) of the GBG Act says BWSSB and BESCOM cannot give a permanent water or power connection to a building without an OC. Keep paper copies and scans of all of these in one folder. The next steps, khata transfer and the owners’ association, also use them.

Who asks for which document depends on the office. The Seva Sindhu list for a new BDA e-khata asks for the BDA possession certificate for a BDA-allotted site or flat. For a BDA-approved private apartment, that list marks the possession certificate “Not mandatory”. Sachi did not find an official GBA or bank list that names the builder’s possession letter. So ask your lender and the khata office in writing which documents they need.

1. Get the OC copy for your tower.
2. Inspect the flat and give the builder your snag list.
3. Check and sign the possession letter.
4. Collect the keys, receipts and warranty cards.
5. Start the khata transfer after your sale deed is registered.

Sachi reads K-RERA filings for Bangalore projects, including OC status. To check your tower’s OC before you sign a possession letter, Ask Sachi.