How do I get property documents from bank when one owner out of two has deceased? home loan repaid

Once the home loan is repaid, close your home loan account through your internet banking or visit your bank and close the loan account. You need to carry the last 6 months’ loan statement and ID proof to close the loan account in bank. The presence of borrower(s) in the bank is not mandatory when closing the loan account.

Once the loan is closed, the bank emails the Loan Closure letter or we can collect hardcopy of Loan closure letter from bank

The next step is to collect property documents from bank, we need to furnish following documents:

• Loan Closure letter
• Death Certificate
• Family tree Certificate
• Affidavit and Indemnity bond from family members
• ID proofs

Legal heir must present in bank for document collection. If legal heir is minor, the legal guardian shall represent for document collection.

The bank verifies the above-listed documents and hands over the property documents including reconveyance deed. We must register the Reconveyance deed in registrar’s office.

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Let me share my similar experience, where one of the co-owners of the property was deceased. We followed below steps to collect the property documents and register the Reconveyance Deed

In March 2013, my client Mrs.Celine and her husband Mr.Sandeep borrowed a home loan of Rs. 21,75,137 from Federal Bank Limited to purchase a 2BHK flat in Bangalore. Mrs.Celine and Mr.Sandeep registered the Memorandum Of Deposit of Title Deeds (MOD) in sub-registrar office in Bangalore. Refer to the below MOD:

In December 2023, Mrs.Celine and Mr.Sandeep repaid the home loan and collected the loan closure letter from Federal Bank home branch in Bangalore. Refer to below closure letter

The Federal Bank told us to collect back property documents in 20 working days (we deposited the following property documents with bank at the time of MOD registration in March 2013. We need to collect these documents in 20 working days)

• Sale Deed
• Encumbrance Certificate

Due to personal reasons, Mrs. Celine and Mr. Sandeep cannot able to collect property documents in 20 working days

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In February 2024, Mr. Sandeep died due to health issue. His wife Mrs.Celine obtained the below death certificate

One of the co-borrowers Sandeep is deceased, his legal heir must submit Death certificate and family tree certificate to the Bank, to collect back the property documents

We already have death certificate which we shared above for your reference. We applied for a family tree certificate in Nadakacheri office in Bangalore and we received below family tree certificate in 7 working days

If you refer to the above Family Tree Certificate, Late Sandeep's legal heirs are his wife Mrs. Celine and his minor daughter. Mrs.Celine is the natural & legal guardian of minor daughter so she represents document collection

Mrs.Celine submitted the following documents to bank to collect back the property documents

• Mrs. Celine's ID proof
• Death Certificate
• Family Tree Certificate

The bank validated the above documents and handed back the following property documents

• Sale deed
• Encumbrance certificate

Also, the bank handed over the Reconveyance Deed to remove the home loan registered in sub-registrar office. Refer to the below Reconveyance deed image:

After collecting documents from the bank, I reached home

The next day, when I was filling out the application on Kaveri Online Services for Reconveyance deed registration, I realized that the bank had given reconveyance deed in the name of Mrs.Celine and Mr. Sandeed (refer to the first paragraph in above reconveyance deed, highlighted in bold text)

We know that Sandeep is deceased, the bank should give the Reconveyance deed only in the name of Mrs. Celine or the bank should mention in reconveyance deed that Late Sandeep has passed. Upon realizing this mistake, we approached the bank for correction.

We visited the bank and requested the staff to provide a revised reconveyance deed by removing Sandeep’s name, the bank was not revising the deed despite our repeated insistence. The bank told us that once the deed is issued, they may not modify it. To escalate this matter, we wrote an email to branch office and I was hoping that this email would reach senior manager for resolution. Refer to the email below

Even after waiting for 3 working days, we haven’t received response from bank

Instead of waiting further, we came up with an alternative idea. Let me share below for your reference

Although the bank has given the Reconveyance Deed in the name of Mr.Sandeep who is deceased and Mrs. Celine who is the surviving member, we filed Reconveyance Deed application only in the name of Mrs.Celine (we ignored Mr. Sandeep's name in Reconveyance Deed application).

In the below application on Kaveri Online Services, you can refer CLAIMANT 1 OF 1 which means only one applicant

At the end of the application, there is a section called “Upload Deed Document”, we uploaded the above Reconveyance deed here

In another section called “Upload Annexures”, where we can upload the supporting documents, we uploaded Sandeep's Death Certificate and Family Tree Certificate, to let the sub-registrar's office know that Sandeed is deceased. Refer to the below upload sections

As I expected, our application was approved in a day, we paid the government fee of Rs. 575 and booked the slot for registration. Refer to the below slot confirmation

As per our registration slot, Mrs. Celine carried the following documents to sub-registrar office

• Printout of Application summary report
• Reconveyance deed (Shared the image above)
• Death Certificate
• Family Tree Certificate
• ID proof (Aadhaar)

We submitted the above-listed documents to the registration counter and completed our registration in 20 minutes. We didn’t face any questions or objections from the staff at the registration counter. Below is our registered Reconveyance Deed

Although there are two names’ Mrs. Celine and Mr. Sandeep in above Reconveyance Deed, only Mrs.Celine was present in sub-registrar office for registration of Reconveyance Deed

As mentioned above, we filed a Reconveyance Deed application only in Mrs.Celine’s name, hence only Mrs. Celine's name is shown in Encumbrance Certificate (EC). We highlighted in below EC for your reference (late Sandeep’s name is not shown in EC)

Note:

• When you are in bank to collect the property documents and Reconveyance Deed, please check your Reconveyance Deed for any corrections or mistakes before you leave the bank because few banks don’t encourage corrections once issued
• Don’t accept the Reconveyance Deed in the name of deceased person because deceased person cannot present in registrar's office for registration of Reconveyance Deed
• I would like to share one more experience that I encountered with a financing company, this information may help you to be proactive when you deal with lender at the time of document collection

A lender has not returned the property document because he was not able to validate the death of the borrower despite submitting a death certificate

We would like to mention that Validating the death certificate is so simple and easy, we just need to take mobile phone and scan the QR code mentioned in Death certificate, we highlighted the QR code in the death certificate below for your reference

Once we scan the QR code, the page directs to the government website for data validation

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We assist with document collection and reconveyance, please Whatsapp to +91-97424-79020

Thank you for reading and have a great day!