It is not necessary, co owners should present to take the delivery of documents but in case of death of either co owner and to avoid unwanted situation, bank can demand.

The objective is to avoid legal complications from claims by other legal heirs 

hence insistence on obtaining legal heir certificate on death of applicant 

1. The bank will return the original title papers to the applicant/registered owner only,

2. what is the status of the applicant, if he is no more, co-applicant/legal heir need to produce legal heir certificate to get the papers from the bank. It's the bank's duty to hand over the original title papers to the right person.

See in case of death of applicant as per rules of the bank bank can ask for legal heir certificate as bank can satisfy itself to handover the document. 

1.  It is a usual security precaution to hand over mortgaged property papers jointly to the joint borrowers, to avoid any future legal disputes.

2.  IF the co-applicant is alive, THEN you can take a authority letter or a Power of Attorney from the co-applicant and based on this the Bank would hand over the mortgaged property papers to you.

3.  IF the co-applicant is not alive, THEN you can also give a "indemnity bond" in banks favor, to indemnify the bank against any future legal disputes, by any known or unknown legal hairs.

Dear client 

It is duty of the bank to ask for the complete IDs and if co borrower is dead then only his legal representative can ask for the papers. As its his legal right. 

So get legal heir certificate issued from the authorities and deposit it in the bank. 

Hello, 

if the applicant has passed away then the bank will ask for the legal heir certificate in order to ensure that the property goes to the right person and the legal heir of the deceased person does not have any claim on the share of the co- applicant. 

Note: The advise has been rendered believing that the other co- applicant has left for heavenly abode. 

Regards 

Dear Sir,

Now-a-days it is very difficult to fight against bankers and they always change the rules while releasing the documents. You may approach the High Court or get Legal Heir Certificate as follows.

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FAMILY GENEALOGY FAMILY TREE IN KARNATAKA

(SUCCESSION CERTIFICATE MAY ALSO BE OBTAINED UNDER SECTION 372 OF SUCCESSION ACT)

http://www.nadakacheri.karnataka.gov.in/

Please go online and apply for this application.

The link is under "Nadakacheri" website. 

1- It will only cost you 15 Rupee Per Application.

2 - Ex : Lets say "dad" has passed away, and mom is applying for family tree certificate, you need to include mom's name and sibling's name while applying .
3 - You need to get the estamp paper number before you apply.
You can contact the Notary or Some typing location near notary, they will help you with the contents.The affidavits need signature from Mom and siblings.

4 - On the portal , you will find the documents to submit .

Voter card , Aadhaar card, Death Certificate, Pan Card, Rationcard documents should be enough for you to get this . You need to upload your mom's documents.

5 - On nadakacheri website, you will get attestation for the family tree. The attestation is done by the revenue officer.
6 - As all government departments work, you might have to pay something extra. 

7 - You might get the documents in a weeks time.

Food Office

45, Dharmaraya Swamy Temple Rd, Halsurpete, Nagarathpete, Bengaluru, Karnataka -2, India

1) Bank may be require legal heirs ship certificate because if other partner is deceased.

2) If you provide details to bank. Bank can handover documents papers to you.

Legal heir certificate required to hand over the documents if co applicant died. 

No they don't have any legal jurisdiction or right if loan is paid off.  Legal heirship can be only asked to prove the heirship