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Understanding Legal and Technical Verification in Housing Loan!

Oct 14, 2022
Understanding Legal and Technical Verification in Housing Loan!

When taking up a housing loan, buyers must know all documentation requirements, official signatures, legal formalities, and processing rules and regulations. Only then can the loan be availed in a stress-free manner.

During the home loan process, many lending institutions opt for risk assessment tools that assist them in understanding how creditworthy their borrowers are. Many borrowers seek the help of official government websites and files to understand the eligibility criteria and other technicalities involved in borrowing a housing loan.

However, there are certain situations when a home loan application is straight up rejected due to legal and technical aspects. So, what are the legal and technical aspects in a home loan? We are here to help you understand.

What is Legal and Technical Verification For A Housing Loan

The legal and technical verification is a significant factor that decides your eligibility for home loan approval. Moreover, your home loan verification amount is subject to acceptance only when your legal documents for the home loan are accurate.


The technical verification of a property primarily involves inspecting the physical aspects of the property. It is conducted first to gather the property's fair market price. A third-party engineer or government valuer organizes this research. Additionally, the property’s structure is also inspected well.

After this, the home loan valuation report is sent to the financial institution or lender in question. This finance body, then, based on the details, decides if you are eligible for approval. In the technical verification process, the following is expected:

  • Verification of the Address
  • Latitude, Longitude, and Coordinates
  • Property Details
  • Total Realizable Value
  • Analyzing the Built-up and Carpet Area

The legal verification of property also has two stages. The property documents are investigated in the first stage, followed by a property-related search in the second. Once this verification is complete, a title report is extracted, which contains all the legal and property verification details.

Documents Required for Legal & Technical Verification

For legal and technical verification, this set of documents is required:

  • Official RERA Registration Document
  • Sales Agreement
  • Occupancy Agreement Document
  • Approved Plans
  • Non-Agricultural Order
  • Land Register Extract
  • Commencement Certificate

Tips & Fee Details

There are a few things that you must keep in mind during legal and technical verification:

  • Lenders cannot ask for legal and technical verification fees separately. The cost is included in the processing fees of the process. The valuation charges can differ; therefore, read the agreement papers for more details.
  • The valuation process can tempt you to think otherwise. Experts from respective fields conduct the verifications, and there is nothing to worry about.

The fees for a property's legal and technical verification differ with each lending institution. You can click here to learn more about Grihashakti’s fees and charges.

Over the total home loan amount, the processing fee is charged.

Why Is Legal And Technical Verification Required?

The home loan approval process has many layers to it. The need for legal documents for a home loan has been a tradition for a while. To generate a home loan valuation report, a borrower has to undergo legal and technical verification of the property. Post verification, a detailed report is sent to your lender. Only based on this value will the lender process the loan amount. This is why legal and technical verification is mandatory when applying for a home loan.


The legal and technical verification processes ensure that you are given a secure loan amount with complete safety, saving you the trouble of fraud. With Fullerton India SMFG Grihashakti home loan, one can easily apply for a housing loan. All you need to do is check your eligibility and submit the documents. Once the verification is complete, the loan is sanctioned. Click here to read about the documents required for a housing loan at Fullerton India Grihashakti.

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

SMFG India Home Finance Co. Ltd. (Formerly Fullerton India Home Finance Co. Ltd.)
CIN number: U65922TN2010PLC076972

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