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.
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
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 the 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
- 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 to 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 we 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 be present in registrar’s office for registration of Reconveyance Deed
We assist with family tree, document collection and Reconveyance deed registration, please write to us pgnproperties@gmail.com or WhatsApp to +91 – 97424-79020
Thank you for reading and have a great day!