Home Loans are not just one of many financial services, but a lifetime earning and an uncanny dream for many families to turn into reality. It is important to take all required precautions for a safe and secure Home Loan procedure. There are many necessary documents and certificates related to a Home Loan one needs to keep in mind. But, there are three foremost certificates that are related to Home Loans you should know about.
1. Occupancy certificate
An occupancy certificate is one the most essential document which certifies the construction of the building and obeying all the local laws according to permissible plans. The provider of the Occupancy Certificate is the local municipal authority. The authority issues the certificate after the completion of the construction of the building which is ready to be occupied.
Who is eligible for the services of the Occupancy Certificate?
Owner of the property in the jurisdiction as per the documentation of the local municipal corporation. The one who has obtained the property plan sanction is eligible for the services of the Occupancy Certificate.
How to apply for an Occupancy Certificate?
An occupancy certificate can be obtained from local authorities by submitting the application form. And municipal body issues the Occupancy Certificate within 30 days of application submission.
Note: The application form can only be submitted after the completion of property construction.
Why Occupancy Certificate is important?
One of the most important reasons, for the Occupancy Certificate being a necessary document is that it is required to occupy the purchased house of the project or constructed property. As it certifies that the building construction is completed as per all the local rules and regulation-by-laws.
The Occupancy Certificate is proof of surety that the construction of the building is safe to occupy. And it is required to apply for water, electricity, and sanitation connections from the local municipal body.
Note: Occupancy Certificate is the mandatory document one needs to submit to avail of home loans.
2. Possession certificate
A possession Certificate which is also referred to as a possession letter is again one of the essential documents that a property seller gives stating the date of possession to a property buyer.
A Conditional Possession Letter
• Due to any reason, if you are not fully satisfied with the property even though the building is in your possession. You can apply for a conditional possession letter by writing your complaints and grievances about the property on the developer’s copy of the letter.
• After giving all the required details and documents regarding your dissatisfaction with the respective property, you ask the developer to make the necessary rectifications as per the agreement.
Difference between an occupancy certificate and a possession certificate?
A possession letter does not give the buyer the legal authority to become the owner of the property. One requires an occupancy certificate, for the property rights.
Steps to get a Possession Certificate;
Note: The process to get a land possession certificate may vary from state to state.
Step 1: You can download the form from the revenue and land reforms website of the respective state. Also, you can visit the nearest Anchaladhikari office to get the application form.
Step 2: Fill out the application form with all required details and documents.
Step 3: After the submission of the form, the applicant will get an acknowledgment receipt. The receipt will contain an application number, which can be used for future references.
A possession Certificate is issued by; The Tehsildar in rural areas and the Revenue Divisional Officer (RDO) in urban areas.
3. No objection certificate
Paying off your entire home loan is not the only responsibility that you have. It is required for you to collect your No Objection Certificate from your respective bank, and it’s one of the most important tasks to complete the whole process.
It’s necessary to collect this document because it declares and assures that there are no outstanding dues on you for the lender. Also, it’s essential as the NOC has to be submitted to the registrar of the property. So that your property can be removed from the lien.
What is a No Objection Certificate and why it’s important?
No Objection Certificate is a legal document that is issued by the bank or financial institutions once the entire home loan is repaid by you, including the interest.
Benefits of No Objection Certificate
• After the full settlement, NOC provides you with the hold of all the legal documents of the property you own.
• There are several important financial documents you need to submit to the respective financial institution you are taking a loan from. There are situations when you need to take a top-up loan to repay the loan in full, in such situations lander requires more collateral.
In both situations, NOC helps you to get back all the collateral paid against the various home loans.
• NOC helps you to remove all the lien from your property which improves your credit score.
How to apply for the Objection Certificate transference process?
Step 1: Reach out to the financial institution you have taken a loan from and apply for No Objection Certificate transference by filing.
Step 2: After reading the current status of your loan, the lender will mail the NOC to the address listed in your home loan application.
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