The possession letter is often signed in a hurry, standing in a corridor, with family waiting to see the new home. It is only a page or two, so it feels like a formality. It is not. It marks the day several responsibilities move from the builder to you, and it can quietly include lines that affect your rights.
What the letter is, and what it is not
The letter records three things: your name, your flat, and the date you took possession. That is all it should do.
- It is not the occupancy certificate. That comes from the local authority. Section 11(4)(b) of the Real Estate (Regulation and Development) Act, 2016 (RERA) makes the builder responsible for getting it and sharing it with buyers.
- It is not your title. Ownership passes through the registered conveyance deed under section 17(1) of RERA.
- It is not proof the work is complete, unless the wording says so. That wording is exactly what you should look for.
- It is not a waiver, unless you sign one inside it.
Ask for the handover file, before the day
| Document | Why you want it |
|---|---|
| Occupancy certificate for your block | Shows the building is legally fit to live in |
| Final statement of account | Every demand and payment, matched against your payment schedule |
| Approved floor plan and specification list | What you inspect against; section 19(1) of RERA lets you obtain them |
| Your snag list, acknowledged | Proof that defects existed before handover |
| Warranty papers | For fittings like geysers, pumps and waterproofing |
| Maintenance terms and deposits | What you pay, on what basis, and what the deposit is for |
| Meter numbers and readings | So utility accounts move to you cleanly |
Inspect first, sign second
If the builder allows, inspect on an earlier day so the handover day is only paperwork. If not, inspect before you sign, never after. A defect written down before signing is a fact. One raised later is your word against theirs.
Number each defect, note the room, describe the problem plainly, and photograph it. Hand over the list in person and by email, and ask for a written acknowledgement with repair dates.
The five-year defect window
Section 14(3) of RERA gives you five years from handover to report a structural defect, or a defect in workmanship, quality or services, or a breach of the agreement. The builder must fix it free within thirty days.
- The five years start from the date on this letter, so the date must be the day you actually receive the keys.
- A report must be in writing to count.
- It covers more than cracks. If the fittings do not match your specification list, that is covered too.
If your possession was late
Section 18(1) of RERA says that if the builder fails to give possession as per the agreement, a buyer who stays in the project is entitled to interest for every month of delay until handover. Collecting your keys does not cancel that right on its own.
What can hurt it is a sentence in the letter such as "possession given on time", "all claims settled" or "full and final". If such a line is there and it is not true, ask for it to be removed or changed in writing before you sign.
What a delay claim can be worth (illustrative)
Illustrative arithmetic only. The actual rate and method come from the State RERA rules and your authority's order.
The rules made under RERA in most states, including Karnataka, link the interest rate to the State Bank of India's highest marginal cost of lending rate plus 2%. Suppose that works out to 10.75% a year at the time, you had paid ₹60,00,000, and possession came six months late.
- Yearly interest at 10.75% on ₹60,00,000 = ₹6,45,000.
- For six months, simple interest = ₹6,45,000 × 6 ÷ 12 = ₹3,22,500.
That is real money. A single "all claims settled" line in a possession letter could put it at risk, which is why reading the letter carefully matters.
Maintenance and the residents' association
Your agreement says when maintenance starts: from the offer of possession or from the actual handover. Check which, and ask how the charge is worked out.
Section 11(4)(f) of RERA puts the duty to help form a residents' association on the builder. Until the association takes over, the builder manages the building and the money collected. Keep the terms in writing, because the association will want to know later.
Your checklist on the day
- Have I seen the occupancy certificate, and does it cover my block?
- Does the letter only record the handover, or does it also say "no defects"?
- Is my snag list attached and mentioned?
- Is the final account correct, with any disputed amount marked as disputed?
- Is there any waiver, settlement or "on time" line?
- Does the date match today?
- Have I photographed every room and both meters?
- Do I know when the conveyance deed will be registered?
Step by step on handover day
- Arrive early, in daylight, with your snag list, a torch, a phone charger and a small plug-in tester for sockets.
- Walk every room before any paperwork. Run every tap and flush every toilet.
- Open and close every door and window. Check locks and the main door latch.
- Switch on every light, fan and socket. Check the distribution board is labelled.
- Look under sinks for leaks and at bathroom floors for slope towards the drain.
- Photograph both meters with the reading visible.
- Only then read the letter line by line, and ask for changes before signing.
- Keep a signed copy, and email yourself the photos the same day.
After you sign: the next 90 days
- Week 1: email the builder a copy of your snag list again, with the signed letter, and ask for repair dates.
- Weeks 2–4: check each repair as it is done. Photograph it and mark it closed on your list.
- Month 1: apply to move the electricity and water accounts into your name, using the meter readings you took.
- Months 1–3: ask for a date for the conveyance deed, and apply for the khata after it is registered.
- Ongoing: report any new defect in writing straight away. The five-year window under section 14(3) runs from the possession date, so do not wait for it to get worse.
Keep a single email thread with the builder for all defects. It becomes a clear record if you ever need one.
If a repair is not done within thirty days of your written report, write again, refer to section 14(3), and keep the reply. A calm, dated paper trail is your strongest tool.
Bring a family member whose only job is to take photos and notes while you inspect and talk. Two sets of eyes catch more, and the notes help later.
Common mistakes on the day
- Signing first, inspecting later, because the family is waiting.
- Accepting a verbal promise to fix things. If it is not written, it did not happen.
- Paying a disputed amount without writing "paid under protest" on the record.
- Not checking the date on the letter against the actual day.
- Losing the papers. Keep the letter, the snag list and the account statement in one file, with your sale agreement.
Our first home guide walks through every stage around this one, from booking to moving in.