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Karthik   21 November 2020

Past sale deeds reqd for home loan

I'm about to purchase a resale house property and one of the requirements for home loan is past sale deeds. The seller, who is the legal heir to the owner of the property, has the registered release deed and the previous sale deed (ie how her mother bought it from the previous seller). Any sale deed prior to that is not available. From a home loan perspective, is it sufficient to just provide these two deeds (release deed & sale deed). Will the absence of previous sale deeds pose any challenge in securing a home loan or even registering the property?


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 8 Replies

Kishor Mehta (CEO)     22 November 2020

It is the usual practice to submit copies of chain of past sale deeds, to register the flat to the names of the purchasers, with the Society. Requirement of the past sale deeds depends on the procedure of the Bank that offers the mortgage.
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SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     22 November 2020

It depends upon the Financial Institution/Bank from whom you wish to avail the Housing Loan. Each organization has its own set of rules to safeguard their own interest. In any case, the title shall be traced for the last 13 years. Therefore, if the documents stated by you are covering how the title passed on person to person in the last 13 years, it would be enough.

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G.L.N. Prasad (Retired employee.)     22 November 2020

The sale deeds, link documents must convince the Bank's Counsel as he alone is having a say on studying documents.

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Karthik   22 November 2020

Thank you all for your guidance. A quick follow-up: will that pose a challenge when it comes to registering the property? How much past should one go and fetch the sale deeds associated with the property? Kindly clarify.

G.L.N. Prasad (Retired employee.)     22 November 2020

It all depends on Bank's Counsel and in general last twelve years' possession and enjoyment with such original title deeds and other certified copies of link documents, EC, Revenue records, tax paid receipts are sufficient.  (DEVIL-TFormalities-Documents, Encumbrance certificate, Valuation certificate, Insurance, Legal opinion, Tax paid receipts)

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Kishor Mehta (CEO)     22 November 2020

In order to register a document with the Registrar of Stamps, you do not require a chain of previous documents. Only the last ownership registered document will suffice.

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G.L.N. Prasad (Retired employee.)     22 November 2020

The ultimate purpose of the query is: From a home loan perspective, is it sufficient to just provide these two deeds (release deed & sale deed). Will the absence of previous sale deeds pose any challenge in securing a home loan or even registering the property?"

 

P. Venu (Advocate)     23 November 2020

Yes, registration does not require any such documents. As to requirements of financial institutions, the best course is to ascertain from the institution concerned.


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