Home loan documents query

POSTED BY Anand Iyer ON January 23, 2013 11:11 pm COMMENTS (2)

I’ve applied for a home loan with SBI. For the legal report, they’ve asked us to submit a whole bunch of documents…makes me wonder – 

Is there a law that dictates which documents the bank and advocate are entitled to ask? They’ve asked us for original non-encumbrance certificate as well as the original legal papers (incl the khata certificate and khata extract). Is this valid at all?

Also, once the home loan is sanctioned and the registration done (and the house is mine), what documents is the home owner and the builder supposed to give me?

thx – Anand

2 replies on this article “Home loan documents query”

  1. Credexpert says:

    Dear Mr.Iyer,

    The bank is entitled to demand any documents that help them ensure an adequate security is created. The documents above do form a part the list of documents. Also, the documents will vary state wise and the lender could help you in this regard.

    Regards,
    Credexpert

  2. Dear Anand, from your query, it seems the property you are purchasing is not an APF (Approved Project File). In case of APF, all the papers you are asking for are handed over to SBI by the builder itself & after the checking of the same, an APF no. is allotted to the project. In common language such projects are known as pre-approved project.

    Yes you w’d have to produce all the documents as demanded by SBI. Actually it’s in your own interest. How? By checking so much documents, SBI is making sure that the land as well as the building on the land is legal & clear title in all aspects.

    Please read some past posts here in the forum to know what sorts of docs. you should collect from builder at the time of possession.

    Thanks

    Ashal

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