Is Sale Agreement Required for Home Loan?

Hi, Is sale agreement required for home loan? The answer is Yes. Not only, sale agreement, but also the encumbrance certificate, property map, allotment letter from the Builder, NOC from Builder, MODT, property chain, registration & stamp duty receipt, and other property documents are required for a home loan. Avail yourself with stress-free home loan from NoBroker home loan service. Is sale agreement mandatory for home loan? This is one of the most crucial property paperwork for a house loan and is also known as the Agreement for Sale. You must be wondering what the Sale Agreement is all about. The Sale Agreement, as the name implies, is a written agreement between a buyer and a seller for the sale of immovable property. This will include all of the specifics (terms and conditions) of the property sale that will take place between the buyer and the seller in the future. You have no right or interest in the property if you sign a Sale Agreement. I've included a list of some of the details found in the Sale Agreement below. Take a peek around!

• Property Location and Detailed Description of the Parties in the Agreement
• Schedule of Additional Payments (if any)
• Specifications of the to-be-developed property
• Construction Schedule Penalty Clauses in the Event of Default by any of the Parties
• Both parties' signatures as witnesses

Is sale deed necessary for home loan? A Sale Deed, often known as the Final Deed or Conveyance Deed by lenders, is the most important proof of property ownership. Many individuals mix up the terms Sale Deed and Sale Agreement. A Sale Agreement is a promise that the property will be transferred, and the Sale Deed is when that promise is fulfilled. You'll need to submit your Sale Deed if you're seeking a house loan. It is nearly impossible to buy, sell, or build on land without an original sale deed. The lender returns your Sale Deed when you have paid back the loan amount. I hope this answer makes it clear to you about your concern of, is sale agreement required for home loan. If you also want to check if you are eligible to take a home loan or not, you check it through NoBroker here,

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Verify all the documents before buy and sell of property with the experts of Nobroker legal services. Read More: Is It Mandatory For The Buyer And Seller To Be Present To Register A Sale Agreement? Can I Buy Property If It’s Original Sale Deed Is Missing?

Yes, when I applied for a home loan, I had to present the sale agreement. And I believe it's critical to properly understand all the paperwork required for home loans and financing. The sale deed is one of the documents you'll have to deliver to your lending bank. Keep reading to know about the property documents required for home loan.

Get a home loan from NoBroker with minimal documentation from NoBroker here. Draft your sale agreement and get it delivered to your home from NoBroker here.

What documents are required for a home loan?

• Property-specific documentation

• Original employer salary certificate

• Past two financial years' Form 16/IT Returns. 

• The last three years' worth of copies of IT returns and evaluation orders.

• Challans as proof of paying advance income tax. 

• Non-salaried persons must provide proof of their business location.

• The last three years' worth of copies of IT returns and evaluation orders.

• Challans as proof of paying advance income tax.

• Form for requesting a loan.

• Three passport-size pictures.

• Identity Proof

• Evidence of residence

• Passbook or bank account statement over the last six months.

• Signatures verified by your bank.

• Personal property and a listing of debts.

What is a sale agreement for home loan?

An agreement of sale is a legal document that specifies the conditions that the seller and the buyer have settled for the purchase or sale of real estate. The agreement for sale of mortgaged property contains every term that will apply to the sale or transfer of the property. The selling agreement does not create any rights or interests in the property for the buyer.

This is the list of the property documents required for home loan.

Read More: How to make a sale agreement in Pune? What are the documents required to make sale agreement? What is a sale agreement?

Hey Guys,

It is not possible to get a home loan without sale deed. I am going to share my personal experience regarding this. Not only the sale agreement for bank loan, but also the encumbrance certificate, property map, allotment letter from the Builder, NOC from Builder, MODT, property chain, registration & stamp duty receipt, and other property documents are required for a home loan.

Draft and get your sale agreement delivered to your home via NoBroker

Accidentally, I misplaced the original document of the sale deed. I was happy that at least, I have a photocopy of the same, which would help me in obtaining a loan. However, I was wrong. The photocopied sale deed for home loan was not accepted. There was the requirement of not only loan sale agreement, but also other supporting documents like an encumbrance certificate, Khata certificate, and tax paid receipt. All should be original.

Finally, I obtained a certified copy of sale deed from the sub-register office to obtain a home loan. Hence, I’d like to conclude here by reiterating that it is not possible to get a home loan without sale deed.

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How to Do Your Sale Agreement?