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Loan Against Property · Question
Short answer
The legal report, prepared by a lawyer the lender appoints, checks whether you have a clear and marketable title and whether anything restricts mortgaging the property. The technical report, prepared by an engineer or valuer, checks the actual property: its location, area, condition, use and whether it matches the approved plan. Together they tell the lender whether the property is safe to accept as security.
Before accepting a property, the lender wants independent opinions rather than relying on what the borrower says. These are part of the due diligence, the lender's structured checking of the property and the borrower.
The lawyer reviews your title documents and the chain of ownership, searches public records for registered charges and disputes, and checks that the property is free of claims, attachments or pending cases. The report usually states whether the title is clear and marketable, who must sign the mortgage, and what conditions should be met before disbursal. If there are gaps, it may list documents to be obtained.
The engineer or valuer inspects the site. Typical points include the exact location and boundaries, the built-up and land area, the age and condition of the structure, the permitted use, how the building compares with the approved plan, and the surrounding infrastructure. The report supports the valuation and flags anything that could reduce marketability, such as unauthorised additions.
Be present and organised for the visit
Make the property accessible, keep papers and plan copies ready, and answer questions plainly. Inaccurate statements can be spotted during inspection and can damage trust.
Clear reports usually let the process move to sanction and documentation. Adverse remarks may lead the lender to request more papers, reduce the loan amount, ask for corrections or decline the property. You can usually ask what needs to be fixed, though the reports themselves are generally the lender's confidential working papers.
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This answer is general information, not advice on your particular case. Terms, eligibility, and requirements change, so check the current position with the relevant institution or authority. Lalsar Holdings' financial advisory and financing work is advisory and facilitation only. Lalsar Holdings is not a lender. Sanction and disbursement of any credit facility is at the sole discretion of the partner bank, NBFC, or financial institution involved, subject to their own eligibility criteria and credit policy.