 Any person who is interested in availing housing loan has to go through Credit Appraisal, Legal Appraisal and Technical Appraisal.
As far as Credit appraisal is concerned depending upon the nature of employment and income, the quantum of the loan will be determined and an in principle sanction will be issued, subject to legal and technical compliance.
After the process of sanctioning the loan, next comes legal and technical appraisal. What is the role of Legal Appraiser and Technical Appraiser? What is the significance of their role?
A legal appraiser ensure that the customer gets a clear and marketable title over the property purchased. Similarly a technical appraiser assures that the property purchased has been approved by the competent authority.
Hence Legal and Technical are two pillars which hold your dream home
What are the various property categories:
a) Purchase of Land
b) Purchase of House
c) Resale House
d) Resale Flat
e) Purchase of an Apartment from Builder
f) Putting up construction in the land already owned
g) Statutory Authority such as Tamil Nadu Housing Board
Our Main Objective
- To ensure that our Customers get Clear and Marketable Title
How do we achieve our objective?
Our Company has got in house legal experts who scrutinize the documents and ascertain that each and every individual gets a clear and marketable title over the property. We ensure that no minor share is involved in the property and the property is free from any
encumbrance.
We scrutinize the following documents:
- Original Title Deed
- Parent Documents
- EC for 15 years
What are the aspects to be looked at while perusing Title Deed?
- Date of the Document
- Document Number
- Executed By
- Executed in Favour of
- Extent conveyed
- Schedule of the Property
- Whether Minor share is involved
Concept of Minority
Basically any person who has not completed the age of 18 years is a minor. If a property is acquired by such a minor person, either by purchase or by inheritance, then such property is termed as minor property. As per Indian Contracts Act a Minor person is incompetent to enter into a contract. Hence any transaction with a minor person is a nullity. The following are the few legislations which deal with the concept of Minority
- Indian Majority Act
- Indian Contracts Act
The following questions might arise in your minds,
- Who can deal with Minor property and how?
- Why we cannot deal with Minor Property?
Father/Mother is the natural guardian of their minor children. Though they take care of the well being of minor children, they do not have right to deal with the minor property. An application has to be filed in the competent Court and permission to deal with the minor property and permission to create mortgage over the said property has to be obtained. Only after obtaining Court permission, it is advisable to purchase a property owned by a minor person.
MOST FREQUENTLY USED TERM WHILE DEALING WITH DOCUMENTS IS "EC"
What does EC stands for?
ENCUMBRANCE CERTIFICATE
Who is the competent authority to issue EC?
Sub-Registrar Office
Significance of EC
What does EC Reveal ?
EC will reveal all registered transactions for the given period pertaining to the property sought for. "Power of Attorney" and "Will" will not be reflected in EC.
What is the minimum period for which we need to verify EC?
It is advisable to verify EC for the last 15 years
How to Look at EC?
EC will have the following columns:
Sl No.
Property Details
Date of Execution
Nature of Document
Executed by
Executed in favor of
Volume/Book No
Pages
Document No and year
A brief note on Revenue Records:
In the absence of Parent Documents, recourse can be taken to Revenue Records. Broadly speaking Revenue Records are certificates, proofs and documents issued by the Revenue Authorities such as Tahsildar, Village Administrative Officer, Block Development Officer etc.
Some of the frequently referred Revenue Records
- Patta
- Chitta Adangal
- Legal Heirship Certificate
Patta/Chitta Adangal is basically a certificate given by Revenue Authorities confirming the name of the person who is in possession of a property. This is only a supportive document and has nothing to do with title.
On death of a person, the legal heirs ought to approach the Revenue Authorities and obtain Legal Heir Ship Certificate. Legal Heirship Certiticate reveals all the particulars of the Legal Heirs of the deceased person.
What are the documents that one has to execute in order to avail loan?
- Promisory Note
- Loan Agreement
- Letter Confirming Deposit of Title Deed
- Power of Attorney (POA)
What is Additional Security?
In order to mitigate the risk, Housing Financial Companies might insist for Additional Security such as
- Documents pertaining to some other property
- Personal Guarantee
- Life Insurance Policies
|
