Apply to office of sub-registrar for title document copies

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 of a home loan.

- SANJEEV SINHA

Here are 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 get lost due to a variety of reasons. "They could get misplaced, damaged due to improper storage, or get lost due to fire and other natural calamities," says Raoul Kapoor, co-chief executive officer (co-CEO), Andromeda Sales and Distribution.

Borrowers must retain attested copies. "Get a written acknowledgement from the lender listing each document submitted," says Adhil Shetty, CEO, BankBazaar.​com.

Lender liable to penalty

Lenders must remove any lien and return the original property documents within 30 days of loan closure, according to Reserve Bank of India (RBI) rules.