What If The Sale Deed Is Loses By Your Bank?
Sale Deed is Loses By Your Bank- The sale deed/title deed, the original property documents, are kept by the bank as collateral when residences are bought with the aid of housing financing organisations. When the credit is paid back, the consumer receives these documents back. Given that home loans have a long term, the typical loan repayment period is between 10 and 30 years.
These documents are deliver to the bank’s central repository, which is typically found nearby the institution’s headquarters but is typically manage by a third party. There is still room for error because sending and maintaining the security of these papers requires a lot of human interaction.
Are you searching for new projects in Borivali?
Officials from the local branch gather the paper and mail it to the main archive. Mumbai serves as the primary headquarters and central repository for the majority of Indian banks. Since central repositories are frequently manage by outside parties, their location could change throughout the term of the mortgage.
As a result, many instances where banks admitted to missing or misplacing the document have come to light.
Kolkata-based Mukesh obtained a 13.5 lakh rupee home loan from SBI. He was inform that the bank was unable to locate the papers after he paid the debt and request the original property documents from them.
National Consumer Disputes Redressal Commission (NCDRC)
In January 2022, the National Consumer Disputes Redressal Commission (NCDRC) ordered the bank to pay Rs 5 lakh as compensation for losing the ownership deed, providing Mukesh with some comfort after many years.
In February of that same year, the supreme consumer forum fined ICICI Bank Rs 1 lakh as a’stern counsel of caution’ for losing Ramesh sale deed, an Alwar resident, and ordered it to pay the harmed party Rs 1 lakh in compensation.
What should the consumer do if the lender loses the sale deed or is unable to locate the documentation is the dilemma that arises. Before learning how to obtain a copy of the original selling deed, we must first know what to do right away to locate the deed in a less traumatic way.
What rights does the borrower have if the bank loses property papers?
On September 13, 2023, the Reserve Bank of India (RBI) publish a notification requiring banks to return property papers to borrowers and eliminate charges that have been lodge with any registry within 30 days after the loan account’s full settlement. If this is not done, the bank would be charge a fine of Rs 5,000 every day. You can receive duplicate or certified copies of your moveable or immovable property documents from the bank if it misplaces the originals. In this instance, too, the bank would pay Rs 5,000 for every extra day of delay and will also cover any related expenses.
Records of real estate transactions to the rescue
There is no need to panic or lose sleep, to start with. The transaction is document in the sub-registrar’s office, where the deed was registers, and a new copy will be sent. It wouldn’t be difficult to obtain a second copy of the original sale deed as long as you follow the correct method and have all the documentation to support your claims of losing the property documents. The bank would be order to pay you back in the consumer court after being found responsible for causing you this hardship.
The bank is in charge of locating the deed
If the bank is unable to deliver your original property documents, it is entirely its responsibility to restore them, with all associated costs.
What must you do?
Understand the wording
The issue—they won’t be able to return your documents—may be expresses by the bank in a variety of ways. Be aware of the language they use for your own benefit. Has the purchase agreement gone missing? The sale deed is it lost? The documents are they untraceable? Each of these terms has a unique connotation. And the customer might experience a range of legal consequences depending on the phrase chosen. A misplaced sale deed indicates that there is still a chance to find it. Whereas a lost sale deed indicates that all efforts to locate the document have failed.
You can only file a consumer court petition when the bank admits that the sale deed is “lost” or has become “non-traceable”. If the document is only “misplaced” and might be found, this is not feasible.
Make a written complaint & receive a written response.
As soon as you learn that a document has been lost or misplaced. Request an acknowledgment letter with the bank’s seal and signature. Make a written request for the acknowledgement letter.
Verbal promises to recover lost papers shouldn’t be taken into account. This formal recognition would support your claim if you go to the consumer court to seek relief. As a result, the bank would be hesitant to provide a letter of acknowledgement. However, you must persist.
Lodge an FIR
Place a first information report (FIR) at the police station that has authority over the region using this acknowledgement letter.
Keep in mind that the purpose of a FIR is to gather evidence. If you lose government-issued documents, you must formally report the loss.
To begin the process of obtaining a copy of the sale deed from the sub-registrar’s office, submit a copy of this FIR to the bank. Send a copy of the FIR to your housing society at the same time to request a duplicate share certificate. After the bank receives these documents from you, request a receipt. The bank would then begin its procedure from here.
What will the bank do?
The loss should be cover in three newspapers
The bank will inform the public of the document loss in three daily newspapers—two English dailies and one regional paper—providing all the pertinent information. If someone has, by chance, locate the documents, they are kindly ask to return the notice. They normally give the public between 15 and 30 days in which to return the records or voice any concerns they may have.
Approach the sub-registrar’s office and issue an indemnification bond
In the event that the public does not respond, the bank will draught an indemnity bond outlining the contents. And supplying copies of the FIR, share certificates, newspaper prints, etc. With all of these papers and the necessary fees. The bank will go to the sub-registrar’s office and ask for more copies of the selling deed. Following that, a copy of the sale deed would be issue.
What happens if the bank declines to assist?
Your request for a written acknowledgement of the document loss may be denied by banks. A borrower can appeal to the consumer court in such a case. Keep all the supporting documentation, such as evidence of the full loan payback and the bank’s failure to return the original sale documents, in order to make a compelling argument. These days, EMIs are taken online, so it would be simple to demonstrate this.
To move the state and apex forums, keep in mind that you must first contact the district consumer forum. This could be a lengthy process, but it will undoubtedly be worthwhile. The aforementioned case studies show that the court would most likely rule in favour of the consumer.
You’re looking for Projects in Vasai we have the Best Properties In Mumbai Like Ready to Move:https://navimumbaihouses.com/properties/search/vasai/
If you want daily property update details please follow us on Facebook Page / YouTube Channel / Twitter
