Lender loses property documents: Apply to sub-registrar for title copies

Before you can do so, the bank must issue a non-traceable certificate, file an FIR, and publish a public notice in newspapers on your behalf

The Coimbatore District Consumer Disputes Redressal Commission recently directed a housing finance company to pay ₹10 lakh in compensation to a borrower for losing original property documents submitted at the time of availing a home loan. Here are the steps borrowers can take if a lender misplaces their property papers.

 

Precautions During Submission 

Borrowers must submit ownership documents, including the agreement to sell, title deed, possession letter, NOC from the builder or society, approved building plan, encumbrance certificate, and tax-paid receipts when applying for a home loan. These are held as collateral.

 

Property documents can get lost for various reasons.