What is a Notice of Intimidation (NOI) and its charges for home loans?

The Notice of Intimation (NOI) has become a crucial component in home loan procedures, particularly since it was mandated on April 1, 2013. Despite its importance, many borrowers remain unaware of its role. This document serves as a formal intimation to the Registrar of Assurances that a property has been mortgaged. Its primary purpose is to safeguard against property fraud, prevent duplicate registrations of the same property, and ensure that multiple loans are not secured on a single asset. In essence, the NOI acts as a legal safeguard, enhancing transparency and accountability in real estate transactions.

Understanding the NOI process and its implications is key to a seamless and legally compliant home loan experience. It explains the notice of intimation, meaning and its crucial role in safeguarding both lenders and borrowers. By understanding NOI’s intricacies, homeowners can navigate the complexities of mortgage transactions with greater confidence and clarity.

Table of Contents

• Notice of Intimation
• Why is NOI Important in Home Loans
• Legal Provisions: Section 89B & 89C Registration Act Explained
• State-Wise Filing Rules & Stamp Duty Rates
• Who Files NOI? Borrower vs Bank Responsibilities
• Document Required for NOI
• Procedure for Filing NOI
• NOI Filing Routes: Online vs Physical – Pros & Step-by-Step
• Penalties & Risks of Missing the 30-Day Deadline
• NOI Charges Breakdown: Stamp Duty, Notice Fee, CERSAI & Handling

What is Notice of Intimation (NOI)?

Notice of Intimation (noi full form) is a legal document that plays a vital role in the home loan process. This document is essentially a letter of intimation of mortgage, officially informing the relevant government authority about the mortgage created on a property. It is a statutory requirement in many jurisdictions and is crucial for maintaining transparency in property transactions.

How does NOI work?

NOI comes into play when a home loan agreement is not registered. In such cases, the borrower must submit an NOI within 30 days of receiving the first loan disbursement. It’s the borrower’s responsibility to ensure this submission, vital for maintaining the mortgage’s legality. The NOI serves as a record of the loan agreement and ensures that the lender and borrower are on the same page. It also helps to protect the borrower from any potential misunderstandings or discrepancies that may arise in the future.

Applicability and Exemptions of NOI

Interestingly, NOI doesn’t apply if both parties, the borrower and lender, mutually agree on the loan terms. However, in most cases, the borrower is required to register this agreement within 30 days, with the lender submitting the NOI to the Sub-Registrar’s Office under the property’s jurisdiction.

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Why is NOI Important in Home Loans?

The primary purpose of NOI in a home loan is to record the mortgage in public records. This ensures that any future transactions involving the property acknowledge the existing mortgage, thereby protecting the lender’s interests. It is primarily the borrower’s responsibility to file the NOI. Failing to do so can lead to penalties, making it a crucial step in the loan process. Additionally, the lender may require a borrower to provide proof of NOI if they make any changes to the terms of the loan.

e-Filing for NOI

Deposit of Title Deed Notice for NOI through e-Filing – Since April 1, 2013, borrowers have had the option to file NOI online, as per Section 89B of the Registration Act. This process involves submitting the necessary title documents electronically, an efficient way to prevent fraud and ensure transparency. Electronic filing eliminates the need for manual paperwork, which requires manual data entry and is more prone to mistakes. Furthermore, e-filing ensures that all documents are kept secure and confidential, reducing the potential for fraud.

Legal Provisions: Section 89B & 89C of the Registration Act

The legal foundation for the Notice of Intimation (NOI) lies in Sections 89B and 89C of the Registration Act, 1908, as amended by the Maharashtra government. These provisions were introduced to enhance transparency and security in property-related transactions, particularly those involving home loans.

1. Section 89B mandates that if a home loan agreement is not registered (which is often the case when only the sale deed is registered), the borrower must file a Notice of Intimation with the Sub-Registrar within 30 days of the loan disbursal. This filing acts as an official declaration that the property is under mortgage.
2. Section 89C empowers the Sub-Registrar to accept and record this intimation, thereby creating a public record of the mortgage. This helps prevent fraudulent activities such as double mortgages or the sale of the same property to multiple buyers.

State-Wise Filing Rules & Stamp Duty Rates (e.g., Maharashtra GRAS)

The process and charges for filing an NOI vary across Indian states. In Maharashtra, filing is regulated through the Government Receipt Accounting System (GRAS) portal.

1. Maharashtra Stamp Duty on NOI: ₹100
2. Registration Fees: ₹1,000
3. Platform for Payment: https://gras.mahakosh.gov.in
4. Other states may not require NOI filing if the mortgage deed is registered; however, it’s essential to confirm with the local Sub-Registrar’s office.

Some states integrate NOI within the registration of the mortgage itself, while others, such as Maharashtra, treat it as a separate compliance requirement.

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Who Files NOI? Borrower vs Bank Responsibilities

Borrower Responsibility: In most cases, the borrower must file the Notice of Intimation.
Bank Involvement:

• Some banks assist by preparing required documents or guiding through the process.
• In a few cases, banks may file on behalf of the borrower (with authorization), but the liability still lies with the borrower.

Required Documentation for NOI

The NOI must be accompanied by the duly filled and signed application form, documents in support of the loan application, and evidence of payment of processing fees. The documents must be in English or Hindi and verified to be true.
The following documents are required for NOI filing:

1. eSBTR or Stamp Papers for 0.2% of the loan amount, authenticated by the bank.
2. Passport-sized photos of all borrowers.
3. Photocopy of the accepted sanction letter.
4. Copies of PAN cards of all borrowers.
5. Recent Index – 2 copies.
6. Notice of Intimation with a Rs. 100 stamp paper or franking.
7. Self-attested identification by a bank representative.
8. List of deposited documents (Photocopy).
9. Original letter from the bank with routing information.

The Procedure for Filing NOI

The process for filing a NOI in-home loan involves submitting the required documents to the designated government office within a specified period from the date of mortgage creation. The documents typically include the loan agreement, a copy of the mortgage deed, and the NOI itself.

1. The first step involves paying the Stamp Duty, a tax levied on property transactions as per the Indian Stamp Act of 1899. This should be done immediately after purchasing the property.
2. The next step requires attaching passport-sized photos of the lender along with their signature or fingerprint, adding authenticity to the document.
3. The third step involves getting the Stamp Duty authenticated by a relevant bank official, enhancing the document’s credibility.
4. The final step is to submit both the original and a photocopy of the NOI to the Sub-Registrar, ensuring all legalities are adequately covered.
5. If Stamp Duty is paid on another document, an additional fee of Rs. 100 is charged for the NOI, accompanied by an authenticated copy of the other document.

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NOI Filing Routes: Online vs Physical – Pros & Step-by-Step

Online Filing (e.g., Maharashtra)

Step 1: Visit the GRAS Portal.
Step 2: Choose Department: Inspector General of Registration (IGR)
Step 3: Select Payment Type: Notice of Intimation.
Step 4: Fill in property and borrower details.
Step 5: Pay the required fees.
Step 6: Submit documents (loan sanction letter, PAN, Aadhaar, index copy) at the Sub-Registrar Office or upload if applicable.

Physical Filing

Step 1: Prepare required documents: Loan agreement, sanction letter, KYC, etc.
Step 2: Visit the Sub-Registrar Office within 30 days of loan disbursement.
Step 3: Pay fees in cash or a demand draft.
Step 4: File NOI physically and receive acknowledgment.

Penalties & Risks of Missing the 30-Day Deadline

Failing to file an NOI within 30 days of loan disbursal can lead to:

1. Legal Non-Compliance: Violates Section 89B of the Registration Act.
2. Lender Risk: The mortgage may not be enforceable in the event of default.
3. Increased Fraud Risk: The property may be fraudulently sold or mortgaged again.
4. Penalty Imposition: Some states may impose penalties or late fees.

NOI Charges Breakdown: Stamp Duty, Notice Fee, CERSAI & Handling

Charges Associated with NOI

Noi charges for home loans are Rs 1000, regardless of the loan amount. Additional document handling charges of Rs 300 apply for physical filings. In the case of e-filing, these fees are paid through the Government Receipt Accounting System (GRAS). The charges are applicable even if the loan is not sanctioned. The fees are non-refundable and must be paid within 15 days of filing the NOI. The fees must be paid in a lump sum.

FAQs About Notice of Intimidation (NOI)