When one closes a home loan, is there a fee to get the original documents back?
Once you successfully repay you loan, you are charged a nominal document retrieval charges where your documents mortgaged with the bank are transferred back to you from a central document repository. Document retrieval charges are applicable only when you as a borrower deposit your property documents with the bank.
What all property documents do banks ask for when seeking a home loan?
If you are purchasing a property from the builder or from a housing society, you will need to submit the original copy of your agreement with the builder along with the sale deed, agreement of sale, original share certificate(s) issued by the housing society. You must also submit the letter
of allotment from housing board or society or private builder. Some banks also seek NOC from builder of housing society and detailed estimate cost of construction from builder.
When you close a Home Loan, the bank will charge document retrieval fees. Why? Usually all original documents given to the bank are divided into 2 parts. One will the most important documents such as sale the deed or agreement to sell. The other category of documents will include no objection certificates and clearance certificates. Important documents such as the sale deed, are kept in safe custody at a central repository. This repository is managed by third parties and might not be in the same city as the bank. Other documents will, however, be retained by the bank branch from where you took the loan. So, document retrieval charges will be the cost of transferring the original documents from the central document repository to the bank branch from which you availed the loan.
There are many documents required for getting a Home Loan. Some of them are:
— Driving license
— Voter ID
— PAN card
— Aadhaar Card
— NREGA Card
– Driving license
– Voter ID
– Ration card
– Utility bill – telephone, electricity, water, gas, postpaid mobile (less than 2 months old)
– Letter from any recognized Government authority verifying the residence address of the customer
– Letter from your employer (in case no other proof is available)
– Bank Statements/Passbook/ other Government documents such as post office passbook
– Property or Municipal tax receipt
– Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address
– Documents issued by Government departments of foreign jurisdictions and letter issued by Foreign Embassy or Mission in India
– Driving license
– PAN card
– Birth certificate
– 10th standard mark sheet
Income proof and property proof vary for salaried individuals and self-employed individuals.
Sale Deed (Title deed /Mother deed/Conveyance Deed)
The Sale Deed or Title Deed is the most important legal document required while buying a property. It is evidence of the sale and transfer of ownership of the property to you. It is also an essential document if you plan to sell the property after a few years since it serves as proof of ownership. The Sale Deed has to be registered at the Sub Registrar’s office of property jurisdiction within four months from the sale date. Very, very important.
Joint Development Agreement
A crucial document when opting for a property which is part of a joint venture project; the Joint Development Agreement (JDA) is an agreement between a landowner and a builder wherein the landowner contributes his vacant land and the builder undertakes real estate projects on that land. The JDA lets you know whether the landowner or the builder holds ownership of the property you’re buying.
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