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Handing Over Original Property Documents To Bank for loan


25-Jul-2024 (In Property Law)
I want to sell my property and the buyer will pay part consideration during registration and balance will be bank loan .Now buyers bank all the original property documents to be handed to them at the time of loan application and later on they will make the balance payment is that the correct process ? If i do not have the originals with me and if there is some issue in disbursement then I don't have anything to witheld possession of the buyer in the property . I am willing to show them originals for document verification and later on across the table I will receive balance cheque and handover all the original documents. will i get bank confirmation letter for handing over original documents ? Please advice as i am confused how to deal this .
Answers (3)

Answer #1
434 votes

when you take a home loan, the bank usually keeps the original property documents (like the sale deed, title deed, and agreement) as collateral until the loan is fully repaid. Once you've cleared the loan, you can get them back by submitting a formal request letter to the bank manager. The letter should mention your loan account number, closure date, and contact details, and clearly request the release of property documents. It's also a good idea to ask for a No Due Certificate and a final statement of account for your records.

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Advocate Chikirsha Mohanty

Adv. Chikirsha Mohanty

LawRatoDelhi | 200+ Answers
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Answer #2
718 votes
This is my response to you: 1. You take a sworn affidavit on stamp paper wherein the buyer holds the whole responsibility regarding the original documents and will return the same to you if there is any problem; 2. Technically speaking you should have executed an Agreement to Sell on stamp paper and notarized the same; 3. Then after this you should have executed the Sale Deed and got that registered; 4. Make an affidavit or make an MOU to secure yourself.
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Advocate Gowaal Padavi

Adv. Gowaal Padavi

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Answer #3
707 votes
As per your query Handing Over Original Property Documents To Bank for loan? If you want to sell your property and buyer will pay part consideration during registration and balance will be bank loan. And all documents are have to submit before the bank in this situation you hav to mention all these things in writing while registration. And also have to take assurance and carrect information from bank time bound payment of amount. Also put condition while registration of purchase and sale that without full payment property will not transfer in the name of buyer
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