• Sale agreement lost by home loan lender

I have purchased a new flat from a builder for which I had taken a home loan from a bank. Following the booking of the flat, I had signed a sale agreement for the undivided share in the property, construction agreement and Tripartite agreement with the bank (lender), and these documents were retained by the bank in view of the loan. The flat was registered about a year ago and the bank also retained the registered sale deed following registration. I recently fore-closed the loan by paying all dues. While collecting the original documents, the bank returned the sale deed, construction agreement and tripartite agreement but is unable to trace the registered sale agreement which the bank seems to have lost. 
How important is the sale agreement for the undivided share of the land once the sale deed has been registered? 
If I have to sell the flat in the future, will the buyer want the original sale agreement document or will the sale deed suffice? 
Will I be able to claim compensation from the bank for the loss of the land UDS sale agreement, if so to what extent of the value of the land?
Asked 2 years ago in Property Law
Religion: Hindu

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14 Answers

1) sale deed supersedes sale agreement

2) ask bank to lodge FIR about loss of original agreement

3) issue public notice about loss of original documents

4) seek compensation from bank for loss of original documents

Ajay Sethi
Advocate, Mumbai
75897 Answers
4536 Consultations

5.0 on 5.0

Dear Sir, once the sale deed registered in favour of you there is no necessity to the sale agreement because of sale agreement contents reestablished in the sale deed. If you want initiate legal action against bank for misplace/loss the UDS sale agreement of yours, you have every right to question and get the same, you have to ask in writing, if failed, you have to issue a legal notice for the same to the bank, if not satisfactory reply from the bank you have to initiate for compensation in this regard before jurisdictional civil court/consumer court, but chance is very less, just you have to try for the same. All the best.

C. V. Jadhav
Advocate, Bangalore
543 Answers
17 Consultations

4.7 on 5.0

1. You need to ask the bank to lodge an FIR for lost document

2. Also get issued a public notice informing public about the lost document

3. Take an indemnity plus declaration from bank that in the event the document is traced, it will return it you and will not use the same for any purpose

4. Also write to the banking ombudsman about the bank's negligent act

5. Buyer will need all original title deeds when property is sold by you

Yusuf Rampurawala
Advocate, Mumbai
5216 Answers
33 Consultations

5.0 on 5.0

Dear querist,

Since you have the sale deed with you, it is not not going to matter much, if you have the sale agreement. Sale deed is requitise during sale of property, whereas Sale agreement is just a way of finalizing the interests of both parties before closing the deal.

Still, you can issue a legal notice to the bank asking them to lodge a FIR for the loss of your property documents as well as issue public notice as to the loss of the said documents. Also, get a declaration signed by the bank admitting that they were in possession of the sale agreement and had lost the same and shall be held liable, if you face any losses due to their act or commission.

You can also file for damages in civil or consumer court against the said bank.


Siddharth Jain
Advocate, New Delhi
5491 Answers
61 Consultations

5.0 on 5.0

The state commission directed the bank to return the original deed and also pay compensation of Rs 10 lakhs within one month, or along with 12% interest, if delayed. In case of failure, to return the title deed the bank was ordered to issue a written certificate about the loss.

What you should do when there is loss of original property documents by the lender?

If there is a loss of original property documents by the lender, it is their sole liability to obtain authentic duplicates or a certified copy of the same. An FIR needs to be filed by the lender, and the entire process and all costs are to be borne by the lender.

To understand clearly, let’s go through a case study on loss of original property documents.

Case Name : Secretary/Manager, Mayyanad Regional Co-Operative Bank V/S Ebrahimkutty

Appeal Number : First Appeal No. 288 of 2014.

Date of Judgement/Order : 20/02/2017

Courts : National Consumer Disputes Redressal Commission (NCDRC)

Ganesh Kadam
Advocate, Pune
10167 Answers
91 Consultations

4.9 on 5.0

Dear Sir,

The movement sale deed is registered, the sale agreement will lose its significance. Further you can get the certified copy of it. Better take undertaking from the Bank that was misplaced by them. Further they lodge a police complaint for having lost the document and police give copy of FIR. These two documents supports the certified copy sale agreement.

Kishan Dutt Kalaskar
5493 Answers
185 Consultations

4.8 on 5.0

See in case the sale deed is registered, the sale agreement is of no use further a certified copy of sale agreement can be obtained from the sub registrar office where it was registered.

Sor sell agreement is just future contract in which seller agrees to sale for some consideration when sale is completed, amount.is received and sale deed is executed work of sale agreement is over, sale deed is valid document for title and when you will further sell your property the buyer will only ask for registered sale deed not sale.agreement. As agreement is already completed sale deed is registered.

See you can ask competition from bank for there negligence but since no prejudice to you is caused on loss of sale agreement as sale deed is there a minimal compensation can be give just for deficiency in service and negligence of bank.

Further ask them to give a public notice and fir for loss so that it is not misused and ask them pay compensation for there negligence.

Shubham Jhajharia
Advocate, Ahmedabad
24932 Answers
99 Consultations

5.0 on 5.0

One of the core legal documents that evidence the proof of property sale and transfer of ownership between the seller and the buyer is the Sale Deed. After the registration of sale deed before the registrar office, the sale agreement has no validity. Even though it is the duty of the bank to give back all the documents which they kept their custody for loans .ask bank to lodge FIR about loss of original agreement and seek compensation from bank for loss of original documents.

Ajay N S
Advocate, Ernakulam
3455 Answers
68 Consultations

5.0 on 5.0

Firslty, please ask bank to have a copy of the same for you from the registrar’s office.

Secondly, yes, it is very important to have an original one with you.

Thirdly, in future you may be wanting it time and again in any manner either for selling purpose or otherwise.

Sanjay Baniwal
Advocate, South Delhi
5261 Answers
12 Consultations

5.0 on 5.0

It hardly matter. Chill don't worry

Arun Kasana
Advocate, Delhi
32 Answers

Not rated

Dear Client,

Sale deed is suffice, still file complain against the bank.

Seek compensation under consumer court.

Yogendra Singh Rajawat
Advocate, Jaipur
19394 Answers
25 Consultations

4.5 on 5.0

A. Registered Sale Deed will be prevailed or superseded over the Sale Agreement. Sale Agreement does not convey of title and no right will be transferred based on Sale Agreement.

B. However, you can claim the compensation from the bank under the Gross Negligence committed by the bank under the deficiency in Service with in the purview of the Consumer Protection Act, 1986.

C. Registered Sale Deed is the Title Document and this is the document only is required to establish your right in future Exa: Bank Loan, Selling Flat etc.,

D. You can apply certified copy in respect of Sale Agreement from the Sub Registrar office as this documents registered If you want to get Sale Agreement copy for any reason. And get the letter from the bank towards lost of original sale agreement copy for future correspondence if it is required.

B.T. Ravi
Advocate, Bangalore
924 Answers
89 Consultations

5.0 on 5.0

An agreement to sell is a contract between the buyer and the seller of a property.

What is the clause in the contract about the UDS?

You will be having a photocopy of the sale agreement?

Is the sale agreement executed by a registered document?

If so you can obtain the certified registration copy.

The bank has to initiate process for obtaining certified copy since the loss is due to bank's mistake.

The bank has to indemnify you about the future legal issues in this regard.

The UDS cannot be denied due to loss of original sale agreement.

You cannot claim compensation from bank for the loss of this original document

T Kalaiselvan
Advocate, Vellore
65860 Answers
860 Consultations

5.0 on 5.0

This is my request to you:

1. You must file an FIR before the police station after you realised that the UDS agreement is lost;

2. Let the police investigate and file charges against the bank if there was any malice;

3. Ask the Registrar to give you another duplicate copy of the UDS agreement;

4. You can also file a consumer complaint before the consumer forum for deficiency of services by your bank;

5. It is important that you take immediate action against the bank since UDS agreement is very vital for future sale.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
3 Consultations

5.0 on 5.0

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