Owning a home is a dream for many, but the journey involves more than just selecting the perfect property—it also requires navigating the financial aspects of homeownership. One of the first steps in making this dream a reality is applying for a home loan. However, before proceeding with a home loan, certain legal requirements must be met. In some states, it is mandatory to file a Notice of Intimation (NOI). Let’s break down what this means in simple terms.
What is meant by “Notice of Intimation”?
When you take a home loan, you are required to file a legal document called the Notice of Intimation (NOI). This serves as an official notification to the government that your property is being used as collateral, helping to prevent fraudulent transactions. The NOI is submitted at the sub-registrar’s office, the same place where property registrations are conducted. Simply put, filing an NOI informs the authorities that your property is tied to a loan from a bank or financial institution. It remains linked to the outstanding debt until the loan is fully repaid.
How does NOI work?
- When you submit an application for a home loan, the financial institution that will be providing the loan, often a bank, will produce an agreement. Once both parties have agreed to the terms of the agreement, it will be registered. In this scenario, there is no need for NOI to be completed.
- If, on the other hand, the agreement is not registered, the mortgagee (the borrower) has 30 days from the time the first loan amount is disbursed to submit an NOI to the Sub-Registrar Office under whose jurisdiction the specific property falls. This deadline begins when the mortgagee receives the first loan amount.
- It is the entire responsibility of the borrower, not the responsibility of the financial institution, to submit the Notice of Intimation. You might do this by using the services of a third-party executive.
- It is possible that the mortgage’s legality will be jeopardised and that the interests of the parties will be harmed if the agreement is not registered and the notice of intimation (NOI) is not filed.
- Anyone who does not provide this notice within the allotted amount of time is liable to the penalties that are outlined in section 89C of the Act.
Importance of Notice of Intimation (NOI) in home loans
The Notice of Intimation (NOI) plays a crucial role in the home loan process, ensuring transparency and legal compliance in property transactions. Here’s why it is important:
- Legal requirement: In some states, filing the NOI within 30 days of obtaining a home loan is mandatory. Failure to do so can result in penalties imposed by the government.
- Lender protection: NOI safeguards the financial institution’s interest by preventing unauthorized sales of the property without the lender’s knowledge.
- Easier future transactions: Maintaining NOI records helps in avoiding disputes and ensures a smooth transfer of ownership when selling the property.
- Fraud prevention: Since NOI creates a public record linking the property to an outstanding loan, it helps prevent fraudulent transactions and unauthorized sales.
Deposit of title deed notice for NOI through e-filing
The term “e-filing” refers to the practice of submitting documentation electronically. Since the implementation of this system on April 1, 2013, home loan borrowers have had the option of submitting their Notice of Intimation through the online platform. Section 89B of the Registration Act of 1908 makes this clear. In the event of a mortgage, this is accomplished by depositing the relevant title documents.
The home loan Intimation Notice was created for a good cause. Previously, there were instances of fraud throughout the house buying and selling processes, both on the side of lenders and borrowers. There were duplicate registrations on several properties, costing the borrowers money. Multiple mortgages for the same property from various lenders were found, which was detrimental to the banks. The introduction of NOI filing was made to stop these losses and damages.
As was stated before, After 30 days have passed after the first loan payment was made, the borrower is no longer eligible to submit a Notice of Intimation for the mortgage loan. Punishments as set out in Section 89C of the Registration Act apply if the borrower fails to submit the Notice of Intimation.
Steps for filing Notice of Intimation (NOI)
The steps for presenting an intimation notification are outlined below. Make sure you follow the rules before submitting the notice.
- Make the necessary Stamp Duty payment.
- Following Article 6 of the Maharashtra Stamp Act of 1958, stamp duty must be paid. That is, 0.1% if the loan amount is less than Rs 500000/-, and 0.2% if it is greater than Rs 500000/-. A stamp tax of Rs 100/- is due on the notice if stamp duty has already been paid on another document related to the same loan transaction, such as a Memorandum of Agreement.
- The Government Receipt AccountingSystem further accepts payments for stamp duty and filing fees (GRAS).
- Attach the passport-sized photos with the mortgagor’s signature/s thumb impression/s
- Have the bank authenticate it with the relevant bank official, who must affix his signature and seal.
- A photocopy of the notification and the original must be sent to the Sub Registrar by the mortgagor.
- If Stamp Duty is paid on another document according to Article 6 and Rs 100 is paid on the notice, an authenticated copy of the other document must be attached to the notice.
- After the documents and the stamp duty have been turned in, the Sub-Registrar will check them all for accuracy. The Sub Registrar will then provide a receipt for the filing fee and document handling fees, as well as an acknowledgement on the photocopy of the notice after validating the Stamp Duty.
NOI charges for Home Loan
- Regardless of the total amount of the loan, there is a filing charge of Rs 1000.
- The document handling expenses of Rs 300/- are only required to be paid in the event of a physical filing (they are not required in the event of an online filing).
- In the event of e-filing, Stamp Duty and Filing Fees must be paid electronically through GRAS (www.gras.mahakosh.gov.in)
- In the event of physical filing, Stamp Duty and filing fees may be paid using any authorised method, including GRAS (www.gras.mahakosh.gov.in).
- If the filing fee must be paid by check, it must be made payable to the corresponding Sub Registrar’s office in the respective city. The document processing fees must be paid in cash.
Documents required for NOI filing
- Original and photocopies of the following documents must be signed and stamped by the bank’s authorities.
- 0.2% of the Loan Amount eSBTR / Stamp Papers / Franked for Deposit Memorandum of title deeds with bankers stamp and signature – Photocopy
- Passport-sized photographs of all of the borrowers.
- Accepted Sanction Letter (photocopy) with signatures from lenders and credit managers.
- Copy of all borrowers’ PAN cards.
- Recent Index – 2 – copies.
- Notice Of Intimation regarding mortgage presented through deposit of title deed with Rs. 100 stamp paper or franking and Rs. 300 in addition to handling fees.
- The “Notice of Intimation” must be signed by a bank representative with self-attested identification.
- List of deposited documents – Photocopy.
- Original letter from the bank, including routing information.
Consequences of not filing the Notice of Intimation (NOI)
Failing to file the NOI can lead to several complications, including:
- Legal penalties: Since filing the NOI is a legal requirement in some states, non-compliance may result in fines and penalties, adding financial strain to your home-buying process.
- Challenges in future transactions: When selling or transferring ownership, the absence of an NOI can create legal complications, delaying or obstructing property transactions.
- Risk to lender’s security: The NOI safeguards the lender’s rights over the mortgaged property. Without it, the lender may face challenges in claiming ownership if the borrower defaults.
Common mistakes to avoid while filing NOI
Filing the Notice of Intimation (NOI) accurately and within the stipulated timeline is crucial to ensure legal compliance and avoid penalties. Here are some common mistakes borrowers should steer clear of:
- Missing the 30-Day Deadline: NOI must be filed within 30 days from the date of mortgage execution. Delayed filings can result in penalties or rejection.
- Incorrect or Incomplete Documentation: Submitting documents with missing information, unsigned pages, or discrepancies between the loan agreement and NOI form can lead to delays or rejection.
- Skipping Signatures: Both the borrower and an authorised bank representative must sign the NOI form. Unsigned submissions are considered invalid.
- Wrong Stamp Duty Payment: Paying incorrect stamp duty, either online or offline, is a frequent error. Ensure the stamp paper or e-challan matches the prescribed amount and format.
- Filing at the Wrong Office or Portal: NOI must be submitted to the correct Sub-Registrar office or via the appropriate state government portal, such as the IGR Maharashtra site.
- Failure to Save Acknowledgement Receipt: After successful submission, an acknowledgement is generated. Losing this can create issues during legal verification or in future property transactions.
- Not Verifying Uploads in Online Filing: When filing online, failing to check whether scanned documents were uploaded clearly and completely can result in processing issues.
Contact information: Queries and grievances
In the event that you have any queries or complaints, please get in touch with one of the following offices:
| Division | Name of the office | Mobile No. | Phone No. |
| Pune | Deputy Inspector
General of Registration, Pune |
8275090005 | 020-26119438 |
| Mumbai
|
Deputy Inspector General of Registration, Mumbai | 8275090107 | 022-22665170 |
| Thane | Deputy Inspector General of Registration, Thane | 8275090110 | 022-25361254 |
| Nashik | Deputy Inspector General of Registration, Nashik | 8275090116 | 0253-2570852 |
| Aurangabad | Deputy Inspector General of Registration, Aurangabad | 8275090119 | 0240-2350343 |
| Latur | Deputy Inspector General of Registration, Latur | 8275090122 | 02382-248853 |
| Nagpur
|
Deputy Inspector General of Registration, Nagpur | 8275090125 | 0712-2053819 |
| Amaravati | Deputy Inspector General of Registration, Amaravati | 8275090128 | 0721-2666119 |
If you have any questions or concerns about preparing NOI documents, you should only get in touch with your bank.
Housing.com POV
The Notice of Intimation (NOI) is a crucial legal requirement in home loan transactions, ensuring transparency, lender security, and fraud prevention. Filing the NOI on time helps streamline property transactions and protects the interests of both borrowers and financial institutions. Understanding the charges, documentation, and filing process is essential to avoid penalties and complications in future transactions. Whether filing physically or through e-filing, adhering to the legal guidelines will ensure a smooth home loan process and safeguard your property rights.
FAQs
What is the maximum amount of time allowed for the notification to be filed?
The notification has to be sent no later than 30 days after the mortgage was signed.
Is there any way for the deadline to be pushed out, whether for a good reason or not?
The allotted amount of time cannot be increased since the condition in question is a legislative requirement rather than an administrative directive.
Where must the notification be sent for filing?
The notification needs to be sent to the office of the sub-registrar in the jurisdiction in which the property (on which the title documents are placed) is located to be valid.
If there are set days for physically filing documents, what are they?
During normal business hours and on any other day when normal business is conducted, the specified offices can receive the notification for filing.
Are witnesses or agents necessary at the office of the sub-registrar
No
Must a bank representative be present at the office of the sub-registrar?
No.
How can I make payment for the document filing fees, the stamp duty, and the document processing fee?
If the document is submitted electronically, the stamp duty and filing fees must be paid using the Government Receipt Accounting System online (GRAS).
Where should the notification be recorded if numerous property titles are lodged at once?
A single notice detailing all properties and their title documents is adequate if they are all located in the same jurisdiction. If the properties are located in many jurisdictions, then notifications must be filed with each sub-registrar in the jurisdiction where the property (and the title documents) is located. Payment of filing fees and document handling costs are separate for such notifications.