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Closing day (sometimes called the “completion date”) is the date when the buyer pays the seller for the home and the title transfers from the seller to the buyer. It’s a common question for buyers, and one that plays an important role in a real estate transaction. The possession date — or what you might refer to as your move-in date — must be agreed upon by both you and the seller. The last thing you want is to show up with your moving truck only to find the seller still cozying up in your new living room.
Date of Possession definition
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This means as soon as the transaction is closed and the deed is recorded, the buyer can move in. A few other common buyer possession dates may be 15 days, 30 days, 60 days, or even 90 days after closing, depending on how much time the seller needs. Hence, a conditional possession certificate allows you to put a condition on the possession of the property. However, suppose the builder or the house owner refuses to comply with the terms mentioned in the agreement.
Possession Certificate
Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. She covers real estate, personal finance, money management, and market best practices.
In a real estate transaction, possession occurs when the buyer or renter takes control of a property after signing closing documents or the lease. After the sale is recorded with the local government and the purchase funds have been received by the seller, ownership of the property is also transferred to the buyer. With later possession dates, or those that are 30 to 90 days after closing, the buyer may offer a lease-back agreement to the seller (also called a post-closing possession agreement). This means the buyer leases the home back to the seller for a certain period of time after closing at an agreed-upon price.
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In a real estate purchase, the buyer and seller draw up a purchase and sale agreement for the property. Items on the agreement that are subject to negotiation include the purchase price, seller assistance with closing costs, the closing date, and fixtures . Rae Hartley Beck is a writer and editor with over eight years of experience in personal finance.
When she's not writing, you can find her fixing up her cabin in the Catskills. The possession date is typically set during negotiations and is included in the real estate contract, along with the closing date and any other important milestone dates or conditions the parties need to meet. A buyer may also opt to lease the home back to the seller for a period of time after closing. The parties may choose a possession date that falls immediately after closing, or after a certain timeframe such as 15, 30, or 60 days after closing.
If you live in a rural area in India, your possession certificate will be provided by the Tehsildar. However, if you live in an urban area, you must collect it from the Revenue Divisional Officer . Sometimes, to raise funds against their property, an owner has to provide the lender with a possession certificate, with an authentic statement from the municipality or tehsil concerned.
For example, treasury and municipal bonds pay interest twice a year for the duration of the loan. Savings bonds, on the other hand, payout both the principal and any interest acquired over the life of the loan in one lump sum when they are cashed in. Savings accounts; while they may not seem like investments, they’re technically a loan to your bank. You earn interest in the form of an APY, even though it’s generally pretty low due to the fact that you can take out the money any time.
If the home rates poorly on any of these items, the buyer may lose their financing. To save the deal, the buyer and seller may be able to renegotiate the terms. Chelsea Levinson, JD, is an award-winning content creator with expertise in real estate, mortgage, and personal finance.
You can avail the benefit of HRA as well till the date you have actually occupied the rented house. Hence both the deductions can be claimed in the same financial year. The possession date is an important part of a real estate contract, and defines when you can legally move into your new home. Depending on the terms you negotiate with the seller, you may move in immediately after closing or after a certain period of time. Work with your agent to set a possession date that protects your interests while still meeting the sellers needs.
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