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Buying a resale flat? Here is the list of documents you need for home loan

If you want to protect yourself from paying self-equitised monthly installments (pre-EMI) and want to buy a home, you can apply for a home loan immediately. There are several important documents you need to purchase a resale property .Maken IQ provides you with a list of documents required while applying for a loan to buy a repossessed home.

It is important that lenders verify the property from a legal angle as the property must be free of encumbrances, and it must have a secure property title. If any document is missing, you may be in trouble for a long time.

Chain of title or sale deed

The document through which the title is transferred in the name of the buyer is called “Immediate Title Deed (ITD)”. If you do not submit this document, banks will not consider your home loan application under any circumstances. All other documents before ITD are called chain documents. If any of these chain documents are missing, home loan applicants can file an FIR. Necessary steps like filing or giving public notice in newspaper must be followed. A title deed denotes the sale and transfer of property ownership from the seller to the buyer. A title / sale deed is a property document that establishes primary proof of ownership for future sale. This document is registered in the Registrar’s Office.

Agreement for Sale (ATS)

An ‘agreement to sell’ is a document that contains the terms and conditions of selling a property between the buyer and the seller. ATS declares the contract value of the property. The amount funded as a home loan for a repossessed property is a certain percentage (it varies from bank to bank) of the market value (MV) or contract value (AV) of the property, whichever is lower.

  • NOC from Society / Authorities

A No Objection Certificate (NOC) certifies that the society has no objection to the transfer of share certificates in favor of prospective property buyers. Any sale or transfer of property without NOC may lead to problems in future. NOC is mostly required in deals related to Cooperative Housing Society (CHS).

  • Title search and report

A property title search is the process of retrieving the chain of documents that document the history of a property. This takes place at the Registrar’s Office. A title report is a written analysis of the property in terms of its description, names of titleholders, joint tenancies, tax rates, encumbrances, liens, mortgages and property taxes. Many home loan lenders do not consider a ‘title report’ as a required document, but it may be required in a land deal.

  • Share Certificate

If you are about to transfer, you are a part of the society, you have to acquire the property by giving the share certificate to the society and making 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 refinance home loan.

  • Occupation Certificate (OC)

The possession certificate certifies that the property complies with the plans approved by the authorities. A possession certificate forms an important part of the chain of documents used for legal verification of property. An OC indicates that the property has been legally created and is eligible for possession. O.C. (OC) receives several documents from the submitter like opening certificate, completion certificate, approval plan, tax receipts, relevant authorities (like fire, forest, pollution etc.), photographs of the property and area calculation sheet.

  • Consolidation Certificate (EC)

An encumbrance certificate (EC) certifies that there are no arrears on the property and that the title is marketable and clear. An encounter certificate reflects all transactions related to assets. When a property is sold, banks ask for an encounter certificate, to know the details of property transactions till date.

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