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Lost allotment & possession letter

(Querist) 18 April 2014 This query is : Resolved 
Hi I have applied for a home loan.But due to the lost original allotment & possession letter bank is asking for the following.

1.Indemnity from customer
2.Paper publication in a National English daily and a vernacular
3.No claim certificate from Advocate
4.Indemnity for Lost allotment letter by Seller

While I understand the need for point 2&4 I am not sure what are point 1&3 about. Please guide me whether I should go for this property or not.

Note:-Seller has a policy general diary for the missing documents.
Dr J C Vashista (Expert) 18 April 2014
These are the basic legal requirements in favour of lender for recovery of money advanced to customer, you are to submit the same otherwise,banker will refuse.
Devajyoti Barman (Expert) 18 April 2014
Yes, do what the bank is saying. There is not harm in giving those to bank.
malipeddi jaggarao (Expert) 18 April 2014
No.1 is indemnity from customer i.e., from you to the Bank. That means if in future any problem relating to the title of the property arises and it affects the recovery of the bank loan, you will personally make good of the money irrespective of the marketability/realization of the mortgaged property. It is justified.
No.3 No claim certificate from advocate - since the original allotment and possession letter is lost by the seller, the advocate will verify the records of the Housing society/association whether somebody claimed this property in the absence of original papers. This is also justified.

But these steps of bank are to protect its interest in recovery. I do not believe that somebody who owns the house lost the original allotment letter and possession letter. The prospective seller might have dealt with these documents by rising some loan or used for other purpose. According to me, better you avoid purchasing of such properties.
Sudhir Kumar, Advocate (Expert) 18 April 2014
you are lucky that bank is giving loan without original letter with these papers.
T. Kalaiselvan, Advocate (Expert) 18 April 2014
It is better to avoid purchase the property which lacks even the basic requirement for purchase, who knows that the property might have been mortgaged based on the original documents with somebody. Consult a local lawyer, take his opinion and proceed further.
ajay sethi (Expert) 18 April 2014
furnish documents sought by bank .
Rajendra K Goyal (Expert) 18 April 2014
Ask for getting duplicate / certified copy of the lost documents.

The documents required by the Bank need to be given for getting sanction of loan.

Confirm whether any mortgage has been created on the basis of original documents.
Surrender K Singal (Expert) 21 April 2014
Police (x-policy-x)general diary need not assure you; Requirement by the lender Bank are in your favour too;
kamalesh (Querist) 21 April 2014
Thanks to all for the valuable suggestions.I have decided not to go ahead with this property.
ajay sethi (Expert) 21 April 2014
thanks for your appreciation
malipeddi jaggarao (Expert) 22 April 2014
You are welcome.
Surrender K Singal (Expert) 22 April 2014
Jai Shree Ram !
kamalesh (Querist) 22 April 2014
I would like to know if builder(Sapoorji pallonji) gives a NOC regarding no mortgage letter was issued to the seller(or any bank) using allotment letter & possession letter, then would that be 100% safe to go for this. This is what the lender bank is saying.

Note:-The sale deed is clear & original as well as the search report from the date of possession till date.
kamalesh (Querist) 23 April 2014
Dear experts please give your suggestions to my query above.
ajay sethi (Expert) 23 April 2014
you can never be 100%safe . show all documents to local lawyer and go by his advice
Dr J C Vashista (Expert) 25 April 2014
I agree with Mr. Ajay Sethi.


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