I am planning to purchase a property in Gurugram, Haryana. The seller says that he has taken a loan from Axis Bank and original papers are with the bank. Should I enter into this transaction? I want my lawyer to inspect the original documents. Since the bank will definitely not release the original papers before the loan is fully cleared, how will my lawyer inspect the original documents as part of due diligence? I have also heard that bank legal departments are not cooperative in such matters and in some cases they even misplace the original documents. Legally speaking, in the rare scenario that the bank misplaces the original documents ( even though they will have to issue a certificate confirming the loss in writing) , what is my position vis a vis my title documents- with the main point of concern being that I should have clear and marketable title and complete documents at the time when I sell the property in future? Will the future buyer or their lawyer accept such a certificate from the bank ? Kindly clarify the legal position in such a scenario- this is a major transaction for me and I can’t take any chance with the title documents. Thanks
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1) seller must be having letter from bank mentioning the list of original documents in its possession
2) ask the seller to request bank to fix date and time for inspection of original documents
3) bank will grant the request
4) if bank loses original documents it had to lodge FIR about loss of original documents,obtain certified copy of documents,issue public notice about loss
5) it would be accepted by the buyer
Yes, Bank missing certificate is legal document and you can get certificate copy from sub registrar office with help of seller performing missing sale deed FIR and two newspaper advertisement.
If the vendor has obtained home loan from the bank then without discharging the loan amount the bank will not release the original title documents held in its deposit.
The vendor will be having the copy of the documents deposited by him with the bank for availing the home loan.
In that you can find that if the original title documents are held by bank, then obtain a certified copy from the registrar's office and forward the same to your lawyer for obtaining the legal opinion.
It is the duty of the vendor to provide the original title document, he cannot claim excuse that the bank has lost it hence he cannot produce the same.
The registrar will not register the sale deed on your name if the original title document is not presented before him.
If the bank is reporting loss of the original title document held in their deposit then they have comply with the procedures as per law to provide the prescribed certificate to the registrar in order get the property registered by furnishing the certified copy in the absence of the original document as per due process of law for loss of original documents.
Dear client Unless the property is subject to any litigation or exercise of mortgage rights by the bank, it is safe to buy a resale property pending mortgage. However, the buyer needs to insist on the closure of loan and a no dues certificate from the bank prior to purchasing the property
Bank will certainly show the originals to you. Execute a triparted against involving bank, pay some token amount. Settle the consideration offering to clear the bank due and remaining, if any to seller. Register the sale deed with seller and bank. Such deals are quite common.
you can plan a visit to the said bank and request the same on behalf of the said seller for inspection of the said papers.
Ask the bank to let your lawyer peruse the documents in their possession in their presence at a date convenient to all. Insist on the bank issuing you a certificate listing all the documents, mentioning whether original or copy, held in their custody, besides obtaining copies of such documents duly attested by them.
