• Correct procedure regarding release of property documents

Greetings to you all...

I'm in the process of selling my house in Bangalore...
Regarding the receipt of an advance and the release of documents for scrutiny, I am hearing different versions...
Some say an advance is collected and the original papers should be presented...
Some say only copies have to be presented...
And some say the originals are only shown to the buyer, without copies presented...

Keeping the safety of the seller and buyer in mind, what would be the correct procedure to follow ?

I am anxious because of this article...

http://timesofindia.indiatimes.com/city/bengaluru/Fake-papers-of-his-own-property-confounds-realtor/articleshow/39739351.cms

Thanks and regards...
Asked 1 year ago in Property Law from Bangalore, Karnataka
Religion: Christian
1. When you accept an advance amount and that should be minimum 10% of the total sale value of the house, you have to give only xerox copies of the documents.   However you can give one or two original documents like Encumbrance Certificate, Allotment letter etc... You can show all the original papers to the prospective buyer at the time of agreement of sale.
2. It is true that some unscrupulous people misuse the documents to their advantage and therefore unless  & until you are sure of the transaction and having received substatial advance money only, you can handover some original documents.
3. All the remaining original documents be handed over to the buyer, on the day of registration of Absolute Sale Deed,  after you are satisfied about the transaction and having received the entire money.
Shashidhar S. Sastry
Advocate, Bangalore
1242 Answers
59 Consultations
5.0 on 5.0
1) you should offer inspection of the original documents 

2) let the buyer be satisfied that title is clear and marketable 

3) if flat is in cooperative housing society then seller can obtain NOC from society for sale of flat . society will not issued NOC if flat is mortgaged as no third party rights can be created without bank consent 

4) you can furnish details of CTS no , name of parties etc so that purchaser can take search at sub registrar office and check whether title is clear and marketable . 
Ajay Sethi
Advocate, Mumbai
23325 Answers
1220 Consultations
5.0 on 5.0
Hi, Don't handed over the original documents to any body you can hand over the original documents only when you completed the sale transaction and after receiving the full amount.

2. If prospective seller wants to verify the documents you can furnish the xeorx copies of the documents and it is practice also.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
You should give the copies of the original documents for inspection only. The prospective buyer is shown the copies and original for comparison. The buyer should not be allowed to retain the copies as on the basis of the copy of the original document a forged deed can be drawn up. This is why it is imprudent to hand over the copies, much less original documents, to the seller.
Ashish Davessar
Advocate, Jaipur
18167 Answers
449 Consultations
5.0 on 5.0
You could provide them a copy of the documents and allow them to inspect the original records 
Siji Malayil
Advocate, Bangalore
7 Answers
0 Consultations
Not rated
1. Do not show or handover the originals,

2. Handover the photocopies but concealing the signatures,

3. Under no circumstances give your photographs or allo him to take your photograph,

4. Keep copies of his PAN card and Voter ID card,

5. Keep an amount as deposite which will be forfieted if the buyer refuses to buy the property showing no reason, after collecting the property documents,

6. Inspite of the above precautions, there will be attempts of cheating which you shall have to face/contest as they come.
Krishna Kishore Ganguly
Advocate, Kolkata
12127 Answers
233 Consultations
5.0 on 5.0
according to section 55 of TPA the seller is bound to produce to the buyer on his request for examination all documents of title relating to the property which are in the seller’s possession or power.

but this liability is limited to buyer only, not for all expected buyer. You should give photocopy of the document and let him to verify it from the registrar office.

you should consult a lawyer and give him right to talk with expected buyer. if deal comes to finalise then you should produce original documents an and take earnest money from him till the date of registration. must fix a date for registration, it shall not be exceed more than 2 months 


Shivendra Pratap Singh
Advocate, Lucknow
2760 Answers
41 Consultations
4.9 on 5.0
A. Don't get confused, once you entered into the Sale Agreement, you are eligible to have advance amount, then you have to give one set xerox copies to the purchaser for title verification.

B. Secondly, after the scrutiny of the xerox copies, you have to submit original verification for theirs counsel if he wishes. After the original verifications, you have to get back the original documents for your safe custody

C. Thirdly, you have to produce all the original documents in respect of your property at the time of registration of Sale Deed i.e, once you received the total consideration amount and at the time of Registration.
B.T. Ravi
Advocate, Bangalore
736 Answers
30 Consultations
5.0 on 5.0
1) you have adopted the correct procedure . offered the purchaser inspection of originals . 

2) if purchaser is interested he can deposit advance money and then take copies of title deeds . 

3) if buyer is genuinely interested he would accept your offer . 

4) he can easily take inspection at sub regsitrar office whether title is clear and marketable . 

5) you should not have xerox copies of your sale deed circulating in the market . it can be misused 
Ajay Sethi
Advocate, Mumbai
23325 Answers
1220 Consultations
5.0 on 5.0
1. Neither original nor copies should be given for retention before the agreement is made. The due diligence, which the buyer is entitled to carry, can be done by his legal team by comparing the copies with the originals, whereas to carry out the process of verification neither the original nor the copy is required. 

2. You can offer to bring the original and copies to the office of his lawyer as lawyers do not go to the residential houses of people to perform their work. The process of comparison can be completed within 2 hours. Thereafter, verification can be carried out independently by them after noting the required details from the original document.
Ashish Davessar
Advocate, Jaipur
18167 Answers
449 Consultations
5.0 on 5.0
1. No problem will come from anybody if every citizen bwecomes honest. But the thing is not so. There are huge nos. of cases where the title deeds have been forged alongwith the signature. In fact I am fighting one such case before the DRT, Kolkata,

2. To protect you from being cheated, the do's and dont's have been enumerated in my earlier post,

3. The said legal team can obtain the certified copy of the title deed from the Registrar's office easily to ascertain the ownership of the property,

4. Originals should not be given at any cost. If they are asking for the original then be careful since it is not the practice. After collecting the original from you they can deposit the same with any Bank and create mortgage on your property against loan taken by them without your knowing about it. They may simply say that the originals have been lost and lodge a police complaint. After few years, when they will stop paying the EMIs, the Bank will take possession of your property and recover its dues by selling of your said property,

5. Collect advance amount from them and handover photocopies of the original.

Krishna Kishore Ganguly
Advocate, Kolkata
12127 Answers
233 Consultations
5.0 on 5.0

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