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: