Venkateswaran Krishnan (Mgr) 07 July 2013

Certified copy of title deed

I am planning to purchase a property from a seller. The settlement deed through which he got the property from his mother in 1999 is there in original. However, the original sale deed through which his mother purchased the property in 1973 is not there. The seller says he has lost this document and only the photocopy is there. He says he will obtain a certified copy from the SRO now. My questions are

1. Will any public sector bank like SBI grant me a loan based on a certified copy.

2. Is producing the certified copy an appropriate step. What if the original is not actually lost but has been mortgaged / given as collatoral to somebody else.

Thanks,

Venkat

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2 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 08 July 2013

Certified copy can be accepted. And also obtain Encumbrance Certificate from sub-registrar office to enable the property whether it is mortgaged or not.

Ajit Singh Cheema (practising Advocate) 08 July 2013

pointwise reply :

1)Normally the Banks donot entertain loans against certified copies,the answer to the question has been given in your second question,If the owner says he has lost the title deeds there is presumption that the property has been mortgaged somewhere else.

2) The certified title deed should not be compared with original as for as the security part is concerned.The bankers rightly donot entertain loans against certfied copies as the originals may have been mortgaged equitably ,The charge of Equitable mortgage is not reflected in the non encumberance certificate issued by the revenue Authorities.