Checklist for Bank Loan Application by Developers, Promoters, and Builders

checklist for bank loan application by developers, promoters, and builders:

  1. Project Details: Provide all necessary details about the project, including its location, site plan, and layout plan. Also, provide information about the project’s size, number of units, and the type of units.

  2. Project Ownership: Provide details about the ownership structure of the project, including the names of the owners, their shareholding pattern, and the legal entity under which the project is being developed.

  3. Approvals and Licenses: Provide copies of all approvals and licenses obtained from the relevant authorities, such as the building plan approval, environmental clearance, and fire safety clearance.

  4. Project Financing: Provide details of the project’s financing, including the sources of funds, the amount of equity and debt, and the repayment schedule.

  5. Sales and Marketing Plan: Provide details of the project’s sales and marketing plan, including the target market, the pricing strategy, and the promotional activities.

  6. Project Schedule: Provide a detailed project schedule, including the start and end dates of construction, the timelines for obtaining approvals and clearances, and the project’s completion date.

  7. Financial Statements: Provide financial statements of the project, including the balance sheet, profit and loss statement, and cash flow statement.

  8. Collateral: Provide details of the collateral being offered for the loan, such as the land on which the project is being developed or any other assets owned by the promoters.

  9. Personal Guarantees: Provide personal guarantees from the promoters and key stakeholders involved in the project.

  10. Other Documents: Provide any other documents as required by the bank or financial institution, such as the project feasibility report or market research report.

This checklist can help ensure that developers, promoters, and builders have all the necessary documents and information to expedite the loan approval process.

Checklist for Bank Loan Application by Developers, Promoters, and Builders

DOCUMENTS REQUIRED FOR APF ( ADVANCE PAYMENT FACILITY )

  1. DEVELOPMENT AGREEMENT WITH LANDOWNER
  2. IRREVOCABLE POWER OF ATTORNEY FROM LANDOWNER FAVORING THE BUILDER
  3. LAND PURCHASE DOCUMENTS WITH PRESENT LANDOWNER
  4. CHAIN OF AGREEMENT / CONVEYANCE OF PREVIOUS LANDOWNERS
  5. CLEARANCE OF LAND UNDER URBAN LAND CEILING ACT 1976
  6. R / L LETTER
  7. NON AGRICULTURAL PERMISSION
  8. LATEST PROPERTY CARD 7 / 12 EXTRACT NAMUNA 6 / 2
  9. LATEST REVENUE RECEIPT OF TAXES PAID
  10. TITLE & SEARCH REPORT FOR THE LAST 30 YEARS
  11. INDEX II ISSUED BY THE SUB REGISTRAR
  12. NON ENCUMBRANCE CERTIFICATE
  13. NOC FROM ENVIRONMENT , IRRIGATION & AVIATION DEPARTMENTS
  14. SANCTION BUILDING PLAN AND PERMIT
  15. DEED OF DECLARATION ( DOD )
  16. NOC FROM FINANCE COMPANY OR BANK ( IF PROJECT LOAN )
  17. REGULARISE LAYOUT PLAN
  18. RELEASE LETTER ( IF PROJECT LOAN 0
  19. COMMENCEMENT CERTIFICATE / COMPLETION  CERTIFICATE
  20. APARTMENT BUYER AGREEMENT DRAFT ( AGREEMENT TO SELL / SALE DEED DRAFT )
  21. ALLOTMENT LETTER
  22. NOC FROM BUILDER TO MORTGAGE
  23. TRIPARTITE AGREEMENT
  24. PARTNERSHIP DEED IN CASE A PARTNERSHIP CONCERN IS THE DEVELOPER
  25. ARTICLES, MEMORANDUM & CERTIFICATE OF INCORPORATION IN CASE A COMPANY IS THE DEVELOPER
  26. POSSESSION LETTER
  27. OCR
  28. DEMAND LETTER
  29. APPROVED LAYOUT & AS WELL AS BUILDING PLANS AND PERMIT FROM COMPETENT AUTHORITY
  30. COMMENCEMENT CERTIFICATE / COMPLETION CERTIFICATE
  31. BROCHURES / HIGHLIGHTS OF THE PROJECT
  32. DEED OF DECLARATION ( DOD )
  33. SALE DEED DRAFT
  34. BUILDER PROFILE ON LETTER HEAD ALONG WITH SIGNATURE AND SEAL
  35. RERA CERTIFICATE
  36. RERA ACCOUNT DETAILS AND FAVOURING ON LETTER HEAD
  37. UNDERTAKING FROM BUILDER REGARDING BANK FAVOURING CLEAR TITLE OF THE PROPERTY ( NOTARY ON RS 500 STAMP / FRANKING )

Checklist for Bank Loan Application by Developers, Promoters, and Builders

details on each heading of the document checklist required for APF (Advance Payment Facility):

  1. Development Agreement with Landowner: This agreement outlines the terms and conditions of the partnership between the builder/developer and the landowner for the development of the property.

  2. Irrevocable Power of Attorney from Landowner Favoring the Builder: This document grants the builder/developer the legal authority to carry out development activities on the landowner’s behalf.

  3. Land Purchase Documents with Present Landowner: These documents provide evidence of the landowner’s ownership of the land being developed.

  4. Chain of Agreement/Conveyance of Previous Landowners: These documents trace the ownership history of the land being developed, establishing a clear chain of title.

  5. Clearance of Land under Urban Land Ceiling Act 1976: This document confirms that the land being developed is exempt from the restrictions set forth by the Urban Land Ceiling Act.

  6. R/L Letter: This is a letter from the local authority confirming that the land being developed is free from any legal disputes or encumbrances.

  7. Non-Agricultural Permission: This document confirms that the land being developed is designated for non-agricultural use.

  8. Latest Property Card 7/12 Extract Namuna 6/2: This document provides details about the property, including its location and boundaries.

  9. Latest Revenue Receipt of Taxes Paid: This document confirms that all applicable taxes on the property have been paid.

  10. Title & Search Report for the Last 30 Years: This report provides a detailed history of the ownership of the land being developed over the last 30 years.

  11. Index II issued by the Sub Registrar: This document confirms that the property has been registered with the appropriate authorities.

  12. Non-Encumbrance Certificate: This certificate confirms that the land being developed is free from any legal disputes or encumbrances.

  13. NOC from Environment, Irrigation & Aviation Departments: This document confirms that the project does not violate any environmental regulations and has necessary approvals from relevant authorities.

  14. Sanction Building Plan and Permit: This document provides the builder/developer with legal permission to carry out construction activities on the property.

  15. Deed of Declaration (DOD): This document is a legal declaration by the builder/developer stating that the property has been developed as per the approved building plan and is in compliance with all applicable laws and regulations.

  16. NOC from Finance Company or Bank (if project loan): This NOC is issued by the bank/financial institution providing the project loan and confirms that they have no objections to the builder/developer mortgaging the property to secure the loan.

  17. Regularize Layout Plan: This document confirms that the layout plan for the property has been approved by the relevant authorities.

  18. Release Letter (if project loan): This document is issued by the bank/financial institution providing the project loan and confirms that they have no objections to the builder/developer selling the property to buyers.

  19. Commencement Certificate/Completion Certificate: These certificates confirm that construction on the property has begun/completed in compliance with all applicable laws and regulations.

  20. Apartment Buyer Agreement Draft (Agreement to Sell/Sale Deed Draft): This agreement outlines the terms and conditions of the sale of the property to buyers.

  21. Allotment Letter: This letter confirms the allocation of a specific apartment/unit to the buyer.

  22. NOC from Builder to Mortgage: This document confirms that the builder/developer has no objections to the buyer mortgaging the property to secure a loan.

Checklist for Bank Loan Application by Developers, Promoters, and Builders

Checklist for Bank Loan Application by Developers, Promoters, and Builders​

APF stands for Approval to Promote and is a legal document that is required to be obtained by a builder or developer before they can start promoting or selling their project to prospective buyers. The APF is issued by the local authority, such as the municipal corporation or the development authority, and is a proof that the builder has obtained all the necessary clearances and permissions from various departments and agencies before starting the construction of the project.

Some of the important documents required for obtaining the APF have been listed above in detail. These documents are required to be submitted to the local authority for scrutiny and verification before the APF can be issued. The APF is generally issued after a thorough inspection of the project site and an assessment of the builder’s credentials and financial stability.

The APF is an important document for both the builder and the buyer. For the builder, it is a proof that the project has been legally approved and is eligible for promotion and sale. For the buyer, it is a guarantee that the project is legal and has obtained all the necessary approvals and clearances. The APF is also important for obtaining loans and financing for the project from banks and other financial institutions.

In addition to the APF, there are other important documents that a buyer should check before investing in a project. These include the building plans and permits, environmental clearances, title and ownership documents, and the builder’s track record and reputation. It is also important to check if the project is registered under RERA (Real Estate Regulatory Authority), which is a regulatory body established by the government to protect the interests of buyers and ensure transparency in the real estate sector.

Investing in a real estate project is a big decision, and buyers should do their due diligence and check all the necessary documents before making a purchase. By checking the APF and other important documents, buyers can ensure that they are investing in a legal and safe project that is eligible for promotion and sale.

Checklist for Bank Loan Application by Developers, Promoters, and Builders

There are several legal formalities that a developer, promoter or builder must comply with for its project. Some of the key legal formalities include:

  1. Obtaining all necessary approvals and clearances from the relevant government authorities before commencing the project, such as building permits, environmental clearances, etc.

  2. Entering into a legally binding agreement with the landowner, which should clearly define the terms of the development and the responsibilities of both parties.

  3. Ensuring that the land is free from any encumbrances, disputes, or legal issues. This requires conducting a thorough due diligence and title search to confirm the legal ownership of the land, any existing mortgages or liens, and any legal claims or disputes related to the property.

  4. Registering the project with the relevant regulatory authorities, such as the Real Estate Regulatory Authority (RERA), and complying with all applicable regulations and guidelines.

  5. Ensuring that the project is constructed in compliance with all relevant building codes, safety standards, and environmental regulations.

  6. Obtaining all necessary clearances and certifications at various stages of the project, such as the commencement certificate, completion certificate, occupancy certificate, etc.

  7. Maintaining proper records and documentation throughout the project, such as construction plans, approvals, certificates, and agreements.

  8. Ensuring that all financial transactions related to the project are transparent and comply with all applicable laws and regulations.

Overall, the developer, promoter or builder must ensure that all legal formalities are complied with to ensure that the project is legally sound and there are no disputes or legal issues that may arise in the future.

Checklist for Bank Loan Application by Developers, Promoters, and Builders
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