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Confused in the Home Loan jargon? Our glossary
will help you in understanding the basic loan related terms.
Browse through the glossary or serach for a term through the
menu to resolve any doubts.
Glossary of Home Loan terms
S
Sale agreement
Sale Agreement is an agreement between the parties dealing
with the property and which creates a right to obtain a sale
deed mentioning the property. It is a document that precedes
a sale deed and in such cases does not require registration
and will also not confer any charge or right on the property.
However in some states the sale agreement itself will be registered
and will act as a sale deed. A sale agreement normally fixes
a time for completion, payment of earnest money or part payment
of purchase consideration.
Sale and Purchase Agreement
A Contract between a seller (Vendor) and a purchaser for
the sale and purchase of property. A Sale and Purchase Agreement
for land must be in writing.
Sale deed
Sale deed is an instrument of law in writing which transfers
the ownership of the property or properties in exchange
for a price paid/consideration. This is a document that
requires to be registered compulsorily.
Sanction letter
Once the loan is approved, a letter communicating the sanction
terms and conditions will be issued to the party.
Sanctioned plan
A drawing containing the plans, section of elevations of
areas along with detailed schedules, specifications and
area statements on which the sanctioning authorities grant
permission to carry out work as regulated in the bye laws.
Settlement
The process by which a sale and purchase of property takes
place. It is commonly done by lawyers and involves the payment
of the settlement amount (which is usually the purchase
price less any deposit already paid and plus or minus any
other items set out in the settlement statement) in exchange
for the Certificate of Title, a transfer document and a
release of previous charges over the property. Keys to the
property are usually either handed over to the purchaser
or his/her lawyer at Settlement, or able to be picked up
from the estate agent immediately following Settlement.
Stamp duty
It is the duty/fee payable on the different instruments/documents
as per the prescribed rate. This differs from state to state.
The adequacy of stamp duty should be ensured to make a document
valid and enforceable.
Statement of account
This is the statement indicating the outstanding loan amount,
the amount paid by the borrower, the appropriations made
towards interest and principal, etc. at the end of the financial
year.
Submission of loan application form
The loan application form asks for information of the borrower,
his family, details of his income and expenditure and his
financial history, cost of the property, availability of
resources, details of personal finances including bank account
numbers, details of property proposed to be purchased etc.
Super built-up areas
The built-up area of a flat including the proportionate
area of staircases, lift, lobby and passage on each floor
and garbage chutes are distributed among all the flats and
the floors in proportion of the built-up area. |
