Does RBI require lenders to verify the title?

Yes, for housing finance companies. Para 190 of RBI's directions for housing finance companies, updated on 1 October 2026, requires a system to verify that title documents are genuine, especially for large loans. Where a borrower submits a legal certificate or valuation certificate, the lender must verify it directly with the authority that issued it.

Can I get a loan for a house in an unapproved layout?

RBI says no loan should be given on property in an unauthorised colony until it has been regularised and the development and other charges are paid. In Andhra Pradesh, the AP DPMS 2.0 portal lists the Layout Regularization Scheme and shows approved layouts and LRS layouts under Masters on its permits page.

Why does the bank pay the loan in stages?

RBI's master circular on housing finance for banks, dated 1 April 2025, says disbursal of housing loans to individuals must be closely linked to the stages of construction. Upfront disbursal is not allowed for incomplete, under-construction or greenfield housing projects. Housing finance companies follow similar rules under their own RBI directions.

What is CERSAI and what does a search show?

CERSAI is a Government of India company that runs the central register of security interests under the SARFAESI Act. It also records attachment orders and court orders. The public can search the register for a fee of Rs 10 by asset details, or by borrower PAN, date of birth or name.

How much of the price will a bank lend?

RBI's 2025 master circular caps a bank housing loan at 80% of the property cost up to Rs 75 lakh, and 75% above that. Banks must leave stamp duty and registration charges out of the cost, except where the house costs Rs 10 lakh or less. Your bank may lend less than these caps.

What extra checks apply to a flat in a new project?

RBI's directions require housing finance companies to take RERA into account and to ensure the borrower or project has all government and local body permissions. RBI also asks banks to ensure that builders name the bank to which the project is mortgaged and give that bank's NOC for selling flats. Check the APRERA page and AP DPMS permit as well.

Topic guide

Home Loan Legal Check in Andhra Pradesh

A home-loan legal check in Andhra Pradesh is the lender's review of the title, approvals and existing charges on a property before it releases the loan. RBI's directions for housing finance companies, updated on 1 October 2026, require them to verify title documents and to check any legal certificate directly with the authority that issued it. RBI rules for banks and housing finance companies bar loans on property in unauthorised colonies until it is regularised. They also require a sanctioned plan before a construction loan. In Andhra Pradesh, the records behind this check are the Encumbrance Certificate and the 22-A prohibited property search on IGRS, and the Adangal and 1-B on Meebhoomi. For a new project, add the project page on rera.ap.gov.in and the building permit on AP DPMS 2.0. A CERSAI search, which costs Rs 10, shows security interests already registered on the property.

Definition

Home Loan Legal Check: The title and approvals review that a bank or housing finance company carries out before it lends against a property. It confirms that the seller or borrower holds title, that the property is free of registered charges and that the building has the required permissions.

When you need it

When you apply for a home loan or a plot and construction loan, and before you pay the seller more than a token advance. Running the same checks yourself shows early whether the lender is likely to object, for example to a missing building permit or an unreleased mortgage.

Steps

Collect the seller's title deeds and link documents, and get an Encumbrance Certificate from IGRS for the period your lender asks for.
Search the survey number or door number in Prohibited Properties on registration.ap.gov.in.
For land, check the ROR-1B and Adangal on Meebhoomi after an OTP login.
For a project flat, find the registration on rera.ap.gov.in and open the project page with a mobile OTP.
On AP DPMS 2.0 (portal.apdpms.ap.gov.in), open Development Permission, choose Permit Search, select the ULB or authority, and enter the permit number or project name.
On cersai.org.in, open Public Search, then Asset Based Search, choose Immovable, enter the captcha and search for existing security interests.
Check the property tax dues on the city's eMunicipal site through cdma.ap.gov.in.

What you need to search

Title deeds and link documents, with document numbers and years
Survey number or door number, and the khata number for land
APRERA registration number, for a project
Building permit number and the ULB or authority that issued it
Property tax assessment number
Sanctioned plan, and the completion or occupancy certificate for a finished building

Fees

CERSAI search: Rs 10 per search, excluding tax. Payment by UPI is accepted.

Home Loan Legal Check fee. Source: www.cersai.org.in, as of 2026-10-22.

CERSAI search: Rs 10 per search, excluding tax. Payment by UPI is accepted. (source: https://www.cersai.org.in/CERSAI/feestructure.prg, as of 2026-10-22. Verify with sub-registrar.)

How to read it

Read the lender's legal opinion against the records. The chain of title it describes should match the Encumbrance Certificate. For land, the last buyer should be the pattadar in the 1-B, and for a building, the owner in the tax assessment. A mortgage in the Encumbrance Certificate or a security interest in CERSAI must be released before the new loan. For property under construction, RBI requires the loan to be paid out in stages linked to construction.

Red flags

The property is in an unauthorised colony or a layout that has not been regularised
There is no sanctioned plan, or the building does not follow it
A finished building has no completion or occupancy certificate
The builder's brochure does not name the bank to which the project is mortgaged
The builder asks for the full loan amount upfront for a flat that is still being built
An unreleased mortgage in the Encumbrance Certificate or a security interest in CERSAI
The survey number is on the 22-A prohibited property list

Questions

Does RBI require lenders to verify the title?: Yes, for housing finance companies. Para 190 of RBI's directions for housing finance companies, updated on 1 October 2026, requires a system to verify that title documents are genuine, especially for large loans. Where a borrower submits a legal certificate or valuation certificate, the lender must verify it directly with the authority that issued it.
Can I get a loan for a house in an unapproved layout?: RBI says no loan should be given on property in an unauthorised colony until it has been regularised and the development and other charges are paid. In Andhra Pradesh, the AP DPMS 2.0 portal lists the Layout Regularization Scheme and shows approved layouts and LRS layouts under Masters on its permits page.
Why does the bank pay the loan in stages?: RBI's master circular on housing finance for banks, dated 1 April 2025, says disbursal of housing loans to individuals must be closely linked to the stages of construction. Upfront disbursal is not allowed for incomplete, under-construction or greenfield housing projects. Housing finance companies follow similar rules under their own RBI directions.
What is CERSAI and what does a search show?: CERSAI is a Government of India company that runs the central register of security interests under the SARFAESI Act. It also records attachment orders and court orders. The public can search the register for a fee of Rs 10 by asset details, or by borrower PAN, date of birth or name.
How much of the price will a bank lend?: RBI's 2025 master circular caps a bank housing loan at 80% of the property cost up to Rs 75 lakh, and 75% above that. Banks must leave stamp duty and registration charges out of the cost, except where the house costs Rs 10 lakh or less. Your bank may lend less than these caps.
What extra checks apply to a flat in a new project?: RBI's directions require housing finance companies to take RERA into account and to ensure the borrower or project has all government and local body permissions. RBI also asks banks to ensure that builders name the bank to which the project is mortgaged and give that bank's NOC for selling flats. Check the APRERA page and AP DPMS permit as well.

Sources

AP DPMS 2.0 - Directorate of Town and Country Planning (Permit Search)
Fee source — as of 2026-10-22

Last reviewed 22 Oct 2026 by LawyerDesk Team

Quality check: 9 of 6 required sections filled. General information only, not legal advice.

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