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.