If original Dane deed and cancellation deed is Registered you can obtain certified copy from sub registrar office
2) you can cancel the deal as title is not clear and marketable and seek refund of money paid by you with interest
I am trying to get Loan Against Property on my home. But recently, through check by bank legal team that the property had been sold and then cancelled by the previous owner 6 years back. And he had bought on loan. Now although we have obtained the NO DUES Certificate from him. He has discarded the original sale deed and cancellation sale deed. Because of which the finance company is not processing my loan. I have two questions, what legal steps can i take against the previous owner and the builder who sold the property to us without informing about the earlier sale. And is there a possibility of any compensation we can get from the builder as we would have negotiated more in terms of pricing and so if the chain documents(previous owner sale deed and cancellation deed originals are not with him) Second, once the sale deed is cancelled who should have the original documents with them? The owner only or the builder? Thanks
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If original Dane deed and cancellation deed is Registered you can obtain certified copy from sub registrar office
2) you can cancel the deal as title is not clear and marketable and seek refund of money paid by you with interest
You issue a legal notice to your vendor to produce the original sale deed and cancellation deed. If he expresses his inability then you can ask him to give an indemnity bond after which you can issue a public notice about the missing documents and give 15 days time for the public to respond if someone has the original documents.
After that you can apply for certified copy of the original documents and submit it to the bank for process of loan along with newspaper cutting and the indemnity bond produced by the vendor.
You failed to obtain a proper legal opinion at the time of purchasing the property hence you cannot blame the vendor at this stage.
If you had Search Report Title and in the previous sale deed and cancellation deed for the same sale deed. the original seller should have the cancelled deed as property title is transferred on his name.
- The seller /builder is under the obligation to supply all the chain documents to the buyer
- Further, if the builder has concealed the truth facts of the property at the time of selling the property then the buyer can sue against him and also entitled to claim compensation.
- You can issue a legal notice to the said builder and if no positive response then file a compliant against him before the police official for the offence of cheating and breach of trust.
Dear Client,
You have a very serious problem in your case with the property chain documents missing, and there are legal remedies available against both the previous owner and the builder. You can file a notice against the previous owner asking for the original sale deed and cancellation deed or reasonable compensation for the inconvenience caused due to his negligence. If these documents are irretrievably lost, you can apply for certified copies of the sale and cancellation deeds from the sub-registrar's office where the property was registered, which should be sufficient for most financial institutions. As regards the builder, you may file a complaint for concealment of material facts and misrepresentation, since the builder failed to inform of certain important facts concerning the history of sale and cancellation of the property. You can claim compensation under consumer protection laws, since their lack of transparency is now causing you financial and legal difficulties. Legally speaking, once the sale deed has been canceled, the original documents are supposed to remain with the present owner of the property (you in this case); however, in cases where there are disputes, they may also be with the parties to the transaction or with the sub-registrar. Hire a legal expert who will, on your behalf, raise these issues and try to negotiate with the bank for the necessary compensation.
Hope that this helps you to solve your problem.
Thank you so much everyone for such detailed help. I shall take the necessary steps as suggested. My last query is after an update I got from the previous owner recently. He says that he has got the refund of stamp duty which means he has submitted the originals back to the registrar office. Can I ask the registrar to give me the originals? Or the receipt of the refund received by the previous owner will suffice the financial institute as the proof for cancellation deed and previous sale deed being submitted?
It is not necessary that he has to return the original documents to the registrar to cancel the same and get back refund.
The original documents if cancelled and refund granted then he should be in possession of the same.
You can get a certified copy of the cancellation deed.
Yes, if the previous owner submitted the originals to the registrar for a stamp duty refund, you can:
Request Certified Copies: Approach the Sub-Registrar's Office to obtain certified copies of the sale deed and cancellation deed. These are legally valid and should satisfy the financial institution.
Use the Refund Receipt: Submit the refund receipt as evidence to the bank, along with the certified copies, to demonstrate the originals were surrendered to the registrar.
Encumbrance Certificate (EC): Obtain an EC to confirm the property’s clear title and transaction history, which may also help address the bank’s concerns.
Certified copies are typically sufficient for legal and financial purposes. Consult with the bank to confirm their specific requirements.
Thanks for all the valuable answers. It did truly help me sort things out and get the true attested copy of the sale and cancellation deed and also receipt n acknowledgement from the previous owner of him submitting the original documents back for stamp duty refund. My last follow up question is about property tax. The builder has yet to provide us with the property tax bills or receipt. We had purchased the house in 2022 september. Can I go somewhere online and obtain it? How long does it take for property tax to generate and can I access it on my own? And is it legally right for a builder to keep the property tax bills for so long with him?
No he need to supply the same to you and you can still pay the property tax without the bill as you get the bills online or can also get duplicate bills from corporation
Builder has to provide the property tax bills to all the flat owners. You can request the builder to furnish copy of the assessment order issued by the assistant Commissioner, property tax for each and every flat in the building
2) you can approach the municipal Corporation and obtain the proper tax bills for your flat
If you have not paid the taxes then you have to contact the builder alone to get the receipts.
You cannot generate receipt which was already generated.
In any case you have to depend on the builder alone for all such further issues, if he is not cooperating then you can resort to legal action to procure them
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