Apeksha P (Home) 04 May 2023

Succession certificate is mandatory?

Hello Sir/Madam,

I'd like to know if a Succession Certificate is required when selling a property.

Recently my buyer asked to collect succession certificate from seller that's Me for loan amount transfer.

The following are the specifics of the case:

Property was purchased in my father and brother's names. As a result of Covid, he died in 2021, and the property was transferred to my name in 2022. Because we are three siblings, we agreed to release my two siblings' stakes and transfer them to me. we have made and agreement as well.

Now I want to sell my house to Mr.X. He has submitted all of the necessary documentation to SBI bank for loan approval. SBI issues a HOME LOAN-IN PRINCIPLAN APPROVAL letter, and the buyer submits stamp duty and enters into an agreement based on it.

Recently, an SBI official requested that the seller visit the SBI branch to complete the final procedure of signing in front of SBI personnel and verifying identification proof documents.

Now, SBI officials are requesting a succession certificate from the seller.

My question is, given that we have already submitted a death certificate and legally transferred property into my name. So, why is a succession certificate required?

and why SBI did not request this document earlier during the verification of all other property documents and before issuing the letter.

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1 Replies

RAKESH ISHI 04 May 2023

In your case, it seems that you have legally transferred the property into your name after the death of your father and brother, and you have an agreement with your siblings regarding the transfer of their stakes. This means that you are the rightful owner of the property, and there should be no dispute over the ownership of the property.

However, some banks and financial institutions may require a Succession Certificate as part of their due diligence process to ensure that they are lending to the rightful owner(s) of the property. This is because they want to protect themselves against any legal claims that may arise in the future.

In your case, it is possible that SBI did not request the Succession Certificate earlier because they may have overlooked it or they may have different internal procedures. Alternatively, they may have requested it now because they need it for their internal audit or compliance purposes.

In any case, if SBI is requesting a Succession Certificate, you may need to obtain one to complete the sale of the property. You can consult with a lawyer or a legal expert to guide you through the process of obtaining a Succession Certificate.