Legal Report

HomeLoan DocumentationLegal Report

Legal Report

A Legal Report is an official opinion prepared by a lawyer/advocate after verifying the legal status of an asset, property, company, or transaction.

  • In property loans - Banks ask for a Legal Scrutiny Report (LSR) from empaneled advocates to ensure the property has a clear and marketable title
  • In corporate/business cases - A legal report may cover company compliance, contracts, or litigation history.

In short: A legal report certifies whether an asset or entity is legally safe and dispute-free for purchase, loan, or investment.

1. Property Legal Report (Legal Scrutiny Report - LSR)

  • Most common in home loans and mortgage loans.
  • Advocate examines title deed, encumbrances, approvals, chain of ownership.

2. Company Legal Report

  • Prepared during mergers, acquisitions, or investments.
  • Covers compliance with Companies Act, RoC filings, pending litigations, contracts.

3. Litigation Legal Report

  • Court/lawyer-prepared report on the status of ongoing or past cases.

4. Contract/Agreement Legal Report

  • Lawyer reviews lease, franchise, partnership, or loan agreements to ensure legality.

5. Due Diligence Legal Report

  • Comprehensive check of property/company/individual before major deals.

For Property Legal Report

  • Title Deed / Sale Deed / Gift Deed.
  • Encumbrance Certificate (EC).
  • Previous chain of documents (last 30 years, if available).
  • Property tax paid receipts.
  • Khata/Patta/Mutation extracts.
  • Approved building plan / layout.
  • Identity proof of owner.

For Company Legal Report

  • MoA & AoA (Memorandum & Articles of Association).
  • Incorporation Certificate (CIN).
  • PAN, GST, and other registrations.
  • Audited financials.
  • Shareholding details.
  • Contracts, licenses, litigation records.

For Contract / Agreement Legal Report

  • Original contract/agreement draft.
  • Supporting KYC and business documents.

  • Individuals - Buying/selling property, applying for home loans, inheritance claims.
  • Businesses/Companies - During mergers, acquisitions, loan applications, contract signing.
  • Banks & NBFCs - To ensure mortgaged property has a clear and marketable title.
  • Investors - Before investing in startups/companies or property.
  • Government/Authorities - For land acquisition, compensation, and compliance.

  • Ensures Clear Ownership & Title Protects buyers/lenders from disputed or fraudulent property deals.
  • Mandatory for Loans Banks require a legal report before sanctioning home loans, mortgage loans, LAP
  • Prevents Legal Disputes Identifies pending cases, encumbrances, or unregistered deeds.
  • Helps in Business Deals Ensures company or contract is legally compliant before investment.
  • Adds Legal Authenticity Since it's prepared by an empaneled lawyer/advocate, it carries legal weight.
  • Government/Tax Compliance Helps in mutation, registration, inheritance, and tax filings.
 
     
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