Documents Needed For A Home Loan For A Resale Flat
If you want to save yourself from paying Pre-Equated Monthly Instalments (Pre-EMIs) and buy a home that you can immediately move into, then you should apply for Home Loan for a Resale Property. You need many important documents to buy a Resale property.
Makaan IQ lists the documents you need while applying for a loan to buy a resale home.
It is important that lenders verify the property from a legal angle because the property must be free from encumbrances, and must have a secure property title. If any document is missing, you may run into trouble in the long run.
Chain of Title or Sale Deed
The document through which the title is transferred in the name of the buyer is called the “Immediate Title Deed (ITD)”. If you do not submit this document, banks will not consider your home loan application under any circumstance. All other documents prior to the ITD are called chain documents. If any of these chain documents are missing, the home loan applicants must follow necessary steps, like filing an FIR or issuing a public notice in a newspaper. The Title Deed signify the sale and transfer of ownership of property from seller to the buyer. Title/ Sale Deed is a property document that establishes the primary proof of ownership for sale in future. This document is registered in the Registrar's office.
Agreement to Sell (ATS)
'Agreement to Sell' is a document which has the terms and conditions of sale of property between the buyer and the seller. ATS declares the agreement value of the property. The amount funded as home loan for a resale property is a certain percentage (that varies from bank to bank) of the market value (MV) or agreement value (AV) of the property, whichever is lower.
In fact, Sale Deed is drafted based on the ATS.
NOC from society/ authority
The No Objection Certificate (NOC) certifies that the society has no objection to transfer the share certificate in favor of prospective property buyers. Any sale or transfer of property without NOC may lead to problems in future. The NOC is mostly required in deals related to Co-operative Housing Societies (CHS).
Title Search and Report
Property title search is the process of retrieving the chain of documents that document the history of the property. This is done at the Registrar's office. Title report is the written analysis of the property in terms of its description, names of titleholders, joint tenancy, tax rate, encumbrances, liens, mortgages, and property tax. Many home loan lenders do not consider the 'title report' as an essential document, but they may require it in deals related to land.
If the ready to move-in property you are purchasing is part of a society, you will have to get the property shifted to you, by asking the society to issue the share certificate and creating a record of transfer of ownership in their books. The share certificate forms a crucial part of the chain of documents you need, and must be submitted to the bank while applying for a resale home loan.
Occupancy Certificate (OC)
The occupancy certificate certifies that the property has complied with the plans approved by authorities. The occupancy certificate forms an important part of the chain of documents used for legal verification of the property. The OC indicates that the property is legally constructed and fit to be occupied. The OC is obtained after presenting certain documents like the commencement certificate, completion certificate, sanction plan, tax receipts, NOCs from concerned authorities (like fire, forest, pollution etc.), photographs of property, and area calculation sheet.
Encumbrance Certificate (EC)
The encumbrance certificate (EC) certifies that there are no dues on the property and that the title is marketable and clear. The encumbrance certificate reflects all the transactions related to the property. Banks ask for the encumbrance certificate when the property is being sold, in order to know the details of the property transactions till date.