{"id":3290,"date":"2022-01-24T06:25:52","date_gmt":"2022-01-24T06:25:52","guid":{"rendered":"https:\/\/www.homebazaar.com\/knowledge\/?p=3290"},"modified":"2025-03-18T13:01:38","modified_gmt":"2025-03-18T13:01:38","slug":"legal-and-technical-verification-in-home-loan","status":"publish","type":"post","link":"https:\/\/www.homebazaar.com\/knowledge\/legal-and-technical-verification-in-home-loan\/","title":{"rendered":"Explained: What Is Legal and Technical Verification in Home Loan Processing?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Before understanding what legal and technical verification in Home Loan processing, let&#8217;s first see at what stage during the home loan processing you need to face the home loan verification.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If we consider the entire home loan process, the verification comes after making the home loan application and subsequent profile making followed by personal discussion.\u00a0<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-3293 size-full\" src=\"https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/01\/Home-loan-processing2.png\" alt=\"Home Loan Process 2024\" width=\"704\" height=\"340\" srcset=\"https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/01\/Home-loan-processing2.png 704w, https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/01\/Home-loan-processing2-300x145.png 300w\" sizes=\"(max-width: 704px) 100vw, 704px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Once the bank officials duly check the home loan application details, create the profile, and understand the requirements in the personal discussion, then the <\/span><span style=\"font-weight: 400;\">process for the legal and technical verification of the property begins.<\/span><\/p>\n<p>This is the general process for the home loan. However, it may vary depending on the bank&#8217;s policies and process plans.<\/p>\n<h2><b>Legal and Technical Verification Process Overview<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The home loan verification process is done in two stages. Both of these stages involve detailed inspection and report making.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>The Legal Verification of the Property<\/b><\/li>\n<li style=\"font-weight: 400;\"><b>The Technical Verification of the Property<\/b><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"alignnone wp-image-3291 size-full\" src=\"https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/01\/Legal-and-Technical.png\" alt=\"Legal and Technical Verification in Home Loan Processing 2025\" width=\"697\" height=\"480\" srcset=\"https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/01\/Legal-and-Technical.png 697w, https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/01\/Legal-and-Technical-300x207.png 300w\" sizes=\"(max-width: 697px) 100vw, 697px\" \/><b style=\"color: #1d1f20; font-size: 1.953em;\">What Is The Legal Verification of the Property<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The legal verification of the property for the home loan is done in two stages. In the first stage, the property-related search and the verification of the property-related documents are checked.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then in the next stage, the title report is generated. In this report, all the legal and property verifications are mentioned.\u00a0\u00a0<\/span><\/p>\n<h2><b>Important Documents For Legal Verification of Property<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The following are the important documents in the legal verification of the property.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Sales Agreement &#8211; <\/b><span style=\"font-weight: 400;\">The conditions between the developer and property buyer are checked. Also, the amount of the agreement is checked, which becomes the base of the loan amount disbursal.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Non-Agricultural Order &#8211;<\/b> <span style=\"font-weight: 400;\">This is the document that indicates the permission for the conversion of agricultural land for non-agricultural uses.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Copy of 7\/12 Extract &#8211; <\/b><span style=\"font-weight: 400;\">The complete land specifications are checked and the details such as location, size, and ownership are verified.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Occupancy Certificate &#8211; <\/b><span style=\"font-weight: 400;\">The occupancy certificate given by the government authorities indicates that the building or project is suitable for occupancy.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Commencement Certificate &#8211; <\/b><span style=\"font-weight: 400;\">The commencement certificate is the legal document issued by the municipal authority of the region that indicates the permission for the construction.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>RERA Registration <i>&#8211; <\/i><\/b><span style=\"font-weight: 400;\">The official RERA registration of the developer and the real estate projects is checked.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Copy of Approved Plans &#8211; <\/b><span style=\"font-weight: 400;\">The copy of approved building plans issued by the municipal authority is verified.<\/span><\/li>\n<\/ul>\n<h2><b>Home Loan Legal Verification Report<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The important things involved in the home loan legal verification report include the following.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Details of the Bank<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Details of the Borrower<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A complete description of the property<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Extent\/area including plinth\/built-up area<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Location details- village, place, sub-district, etc<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">List of the documents verified<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Series of questions about the legal property checks<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Chain of title tracing the title from the oldest title deed to the latest title deed establishing the title of the property<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Property search report for the last 30 years<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Litigation status of the property\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Details of power of attorney (POA)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Certificate of the title<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Property search report with complete transaction history<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Declaration by the search clerk<\/span><\/li>\n<\/ul>\n<p><strong>Here Is a Sample Home Loan Legal Verification Report<\/strong><\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-3304 size-full\" src=\"https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/01\/Legal-Reports3.png\" alt=\"Home Loan Legal and Technical Verification Report 2025\" width=\"703\" height=\"445\" srcset=\"https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/01\/Legal-Reports3.png 703w, https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/01\/Legal-Reports3-300x190.png 300w\" sizes=\"(max-width: 703px) 100vw, 703px\" \/><\/p>\n<p><b style=\"color: #1d1f20; font-size: 1.953em;\">What Is Technical Verification in Home Loan Processing?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The technical verification of the property involves checking the physical details of the property.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The main objective of the technical verification of the property is to determine the fair <strong>market value of the property.<\/strong>\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The technical verification of the property is conducted by a third-party chartered engineer and government-registered valuer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After the detailed technical verification of the property, the valuer sends the report to the bank to take a further call on the home loan approval.\u00a0<\/span><\/p>\n<p><strong>The technical verification of the property involves the following<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Address verification of the property<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Checking the extent of the site- Total Built-up and Carpet Area<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Latitude, Longitude, and the Coordinates of the flat<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Property location details<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Total Realizable Value<\/span><\/li>\n<\/ul>\n<h2><b>Property Technical Verification Report<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The technical property verification report is prepared by the authorized chartered engineer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After this, the property technical verification report is then sent to the bank to take the call on the home loan approval.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The property Technical verification report consists of the following<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Details of the Property Owner<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Brief Description of the Property<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Details on the Property Location<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Postal Address of the Property<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Area Classification Details<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Latitude, Longitude, and the Coordinates of the flat<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Here is how the sample verification property technical verification report.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3303 size-full\" src=\"https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/01\/Technical-Reports2-1.png\" alt=\"Home Loan Legal and Technical Verification Report 2025\" width=\"691\" height=\"680\" srcset=\"https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/01\/Technical-Reports2-1.png 691w, https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/01\/Technical-Reports2-1-300x295.png 300w\" sizes=\"(max-width: 691px) 100vw, 691px\" \/><b style=\"color: #1d1f20; font-size: 1.953em;\">What Are The Fees For Legal and Technical Verification of the Property?\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The fees for legal and technical verification of the property vary from one bank to the other.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some banks charge for technical and legal verification. While some include the charges in the processing fees.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Generally, the legal and technical verification of the property is-<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Legal Verification Charges for Home Loan<\/strong> = Rs 4000 &#8211; Rs 5000<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Technical verification Charges for Home Loan<\/strong> = Rs 3000 &#8211; Rs 5000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mostly the banks that charge for the Legal and technical verification do not apply the home loan processing fees.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The processing fee, however, is around 0.30-0.25% of the total home loan amount. The home loan processing fees keep changing depending on the various parameters set by the bank.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Few banks also offer no processing fees, especially for salaried home loan applicants.\u00a0<\/span><\/p>\n<h2><b>Why Is The Legal and Technical Verification Important?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Legal and Technical Verification is crucial for banks as well as for the applicants. For banks, it gives the assurance that the home loan application is authentic and there is no mischief involved.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, the home loan verification is decisive in the approval of the home loan. Because the loan is approved based on the market value determined in the Legal and Technical Verification.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if the total cost of the flat you are buying is 50 Lakh and if the LTV ratio of the bank is 80% then the total home loan amount sanctions will be Rs. 40 Lakh.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if the market value calculated during the legal and the technical verification is to be 45 Lakh then subsequently the 80% LTV will be applicable on this amount which will be lesser.\u00a0<\/span><\/p>\n<h2><b>How to Simplify the Legal and Technical Verifications in the Home Loan Process?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Generally, the developers have tie-ups with the banks. If you apply for the home loan listed by the developer, the entire home loan verification process becomes simplified.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There is no legal and technical verification involved if you apply for a home loan from the bank that has tie-ups with the developer. This considerably saves time and as well as fees applicable on the legal and technical verification and saves time in the home loan process.\u00a0<\/span><\/p>\n<h2><strong>FAQs<\/strong><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>What is the Legal and technical verification in the Home Loan Process?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The legal verification of the property involves checking the property-related documents, property litigations, and previous transactions on the property.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Who conducts the legal verification of the property?\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Banks conduct the legal verification of the property through third-party lawyers or law firms.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>What are the legal documents checked during the legal verification of the property?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">When you are buying a new property from the developer, the Sales Agreement, Non-Agricultural Order, Copy of 7\/12 Extract, Occupancy Certificate, Commencement Certificate, <\/span><span style=\"font-weight: 400;\">RERA Registration<\/span><i><span style=\"font-weight: 400;\">, <\/span><\/i><span style=\"font-weight: 400;\">Copy of Approved Plans, etc are checked.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>What is the technical verification of the property?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The technical verification of the property involves the physical inspection of the property to calculate the actual market value.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Who conducts the legal verification of the property?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Banks conduct the legal verification of the property through third-party chartered engineers who are authorized, government valuers.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>What are the fees for legal and technical verification of the property?\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The fees for legal and technical verification vary from bank to bank. Generally, the fees for the legal verification are Rs 4000-5000 whereas the Technical verification Charges for Home Loan are between Rs 3000- 5000<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Before understanding what legal and technical verification in Home Loan processing, let&#8217;s first see at what stage during the home loan processing you need to face the home loan verification.\u00a0 If we consider the entire home loan process, the verification comes after making the home loan application and subsequent profile making followed by personal discussion.\u00a0 [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":18562,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23,3],"tags":[195,194,196],"class_list":["post-3290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-loan","category-research","tag-home-loan","tag-home-loan-verification","tag-legal-and-technical-verification-in-home-loan"],"_links":{"self":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts\/3290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/comments?post=3290"}],"version-history":[{"count":17,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts\/3290\/revisions"}],"predecessor-version":[{"id":19148,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts\/3290\/revisions\/19148"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/media\/18562"}],"wp:attachment":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/media?parent=3290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/categories?post=3290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/tags?post=3290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}