Notice of Intimation: What It Means & Charges in Home Loan

Buying a home usually involves availing of a housing loan, which requires completing several legal formalities. One such mandatory step is the notice of intimation – an important process that ensures transparency and helps prevent fraudulent property transactions. It serves as an official record that a loan has been created against a particular property, thereby safeguarding the interests of both the borrower and the lender.

Let us understand the notice of intimation meaning, and why it plays a crucial role in the home loan process.

What Is Notice of Intimation?

The notice of intimation is an official document filed with the Sub-Registrar’s office to declare that a mortgage or home loan has been created for a property. It serves as an intimation to the registration department that the property is under a mortgage and cannot be used to secure another loan without disclosure.
In simpler terms, it refers to a legal notice submitted after a home loan is sanctioned, ensuring that the property is officially marked as mortgaged. The primary purpose of a home loan notice of intimation is to create transparency between lending institutions and borrowers while reducing the risk of multiple loans on the same property.

When Is Notice of Intimation Required?

Filing a notice of intimation for a home loan is required under certain circumstances as per Section 89B and 89C of the Registration Act, 1908 .

• When the loan agreement between borrower and lender is not registered.
• It must be filed within 30 days from the date of the loan’s first disbursement.
• If the home loan agreement is already registered, there is no need to file a separate notice.
• Failure to file the notice of intimation for a home loan within the time limit can attract penalties and affect the legal standing of the mortgage.

Notice of Intimation for a Home Loan: Purpose & Benefits

The home loan notice of intimation serves several important purposes that safeguard both borrower and lender interests.
Benefits include:

• Legal Record: Establishes a verifiable record of the mortgage with the Sub-Registrar.
• Fraud Prevention: Prevents fraudulent multiple mortgages or sales of the same property.
• Transparency: Enhances clarity between the lending institution and the borrower.
• Compliance: Helps fulfil mandatory legal obligations under the Registration Act.
• Ease of Verification: Future lenders or buyers can verify mortgage status through public records.

In short, filing a notice of intimation for a home loan ensures your property loan is properly registered and legally secure.

Notice of Intimation Charges 

When submitting a notice of intimation, a small government fee is applicable. The notice of intimation charges for home loans are generally standard across states, but may vary slightly depending on the mode of submission.

Borrowers should ensure that charges for notice of intimation are paid correctly, as unpaid or delayed fees can invalidate the filing. In some cases, home loan notice of intimation charges may also differ based on whether the process is completed online or physically at the Sub-Registrar’s office.

How to File Notice of Intimation: Step-by-Step Process

Here’s how you can file your notice of intimation efficiently:

• Pay Stamp Duty: Calculate and pay 0.2% of the loan amount as stamp duty using the GRAS system or eSBTR.
• Obtain NOI Form: Download or collect the official NOI form from the Sub-Registrar’s office.
• Get Authentication: Have the NOI form signed and sealed by the lender or an authorised representative.
• Attach Photograph: Affix a recent passport-sized photograph of the borrower.
• Prepare Documents: Attach all supporting documents as listed in the next section.
• Submit Application: Submit both the original and a photocopy of the NOI form to the Sub-Registrar’s office within 30 days of loan disbursement.
• Receive Acknowledgement: Once verified, you’ll receive a receipt confirming successful filing.

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Both online and offline submissions are accepted, though digital filing is recommended for convenience and record-tracking.

Documents Required for Filing NOI

When filing a notice of intimation for a home loan, ensure you have the following documents ready:

• Loan sanction letter from the lender
• Copy of the loan agreement (if unregistered)
• Stamp duty receipt or eSBTR
• Borrower’s PAN card
• Borrower’s passport-sized photograph
• Two recent index copies of property details
• Notice of intimation form signed by both borrower and lender
• Photocopies of all submitted documents

Legal & Statutory Provisions/Registration Act & Penalties

The notice of intimation process is governed primarily by Section 89B and 89C of the Registration Act, 1908.

• Under these provisions, lenders and borrowers must file the NOI if a loan agreement is not registered.
• Non-compliance can lead to monetary penalties and may affect the enforceability of the mortgage.
• Filing ensures that the mortgage is properly recorded in public records, safeguarding both parties’ interests.

Borrowers should consult their lender or a legal advisor for clarification on compliance under their respective state regulations.

Sample Format/Template of Notice of Intimation

Below is a basic notice of intimation template for reference:

Notice of Intimation Regarding Mortgage by Way of Deposit of Title Deed 

I/We, the undersigned parties, hereby give notice to the public at large that the mortgagor herein has deposited the title deeds of the property for the security of the loan given/agreed to be given by the mortgagee herein.
(1) Party Details
(a) Mortgagor:

• Name: [Full Name]
• Address: [Full Address]
• TAN (For Organisations)/PAN (For Individuals): [TAN/PAN Number]
• Phone/Mobile No: [Phone Number]
• Email-Id: [Email Address]

(b) Mortgagee:

• Name: [Full Name]
• Address: [Full Address]
• PAN: [PAN Number]
• Phone/Mobile No: [Phone Number]
• Email-Id: [Email Address]

(2) Property Location(s):

• District: [District Name]
• Taluka: [Taluka Name]
• Village: [Village Name]

(3) Property Details (with Attribute No., Area, Unit):

• [Property Details]

(4) List of Documents Deposited with Banks:

• [List of Documents]

(5) Loan Amount:

• INR [Loan Amount]

(6) Rate of Interest:

• [Interest Rate]%

(7) Date of Mortgage:

• [DD/MM/YYYY]

(8) Date of Notice:

• [DD/MM/YYYY]

Name of Mortgagor:

• [Full Name]

Party Photo: [Attach Photo]
Thumb Impression: [Attach Thumb Impression]
Signature: [Signature]
In case of a Company/Institute, provide the photo, thumb impression, and signature of the authorised signatory with name.
The information is verified and found correct.
Signature and Seal of Authorised Person of Mortgagee:

• [Signature and Seal]

Payment Details

• Stamp Duty of INR [Amount] has been paid vide [Receipt No.] dated [DD/MM/YYYY].
• Filing Charge of INR 1,000 has been paid vide [Receipt No.] dated [DD/MM/YYYY].
• Document Handling Charge of INR 300 has been paid vide [Receipt No.] dated [DD/MM/YYYY].

(For Office Use Only)

• Name of Sub-Registrar Office: [Office Name]
• Submission No: [Submission Number]
• Date of Submission: [DD/MM/YYYY]
• Filed On Serial Number: [Serial Number]
• Date: [DD/MM/YYYY]
• Signature and Seal of Sub-Registrar: [Signature and Seal]

Please ensure all fields are accurately filled and relevant documents are attached before submission.
*This is a sample layout; actual formats may vary by jurisdiction.

Conclusion

The notice of intimation is an essential compliance step in the home loan process. It not only ensures legal protection but also helps maintain transparency in property transactions. Filing your notice of intimation for a home loan on time prevents potential disputes and penalties, giving both borrower and lender peace of mind.
Always verify the notice of intimation charges and process details with your lender or Sub-Registrar before submission to ensure accuracy and avoid delays.
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