RELEASE OF TITLE DOCUMENTS AND OTHER RELATED DOCUMENTS IN CUSTODY OF KOTAK MAHINDRA BANK LTD TO THE LEGAL HEIRS OF THE MORTGAGOR

OBJECTIVE

In line with the Reserve Bank of India’s circular on release of title documents and other related documents (“Title documents”), banks are required to ensure time bound release of title documents upon closure or full and final settlement of the loan/s to the satisfaction of the Bank.

SCOPE

Loan account/s that have been fully closed or settled through a full and final settlement to the satisfaction of the Bank shall be eligible for release of the Title Deeds.

In cases where a mortgage has been created as security in more than one loan account, and any such account remains outstanding or active, the Title Deeds shall not be released or handed over to the legal heir(s) of the deceased.

ELIGIBILITY

Legal heirs of the deceased mortgagor, and/ or Surviving mortgagor are considered eligible to receive the Title documents.

Legal heirs shall be determined in accordance with the personal law governing the deceased.

PROCESS

The Bank, if reasonably satisfied regarding legal representation from the legal heirs of the deceased mortgagor or surviving mortgagor, shall release the title documents to the legal heirs or surviving mortgagor by procuring the following:

1. Application to RARD Customer Service Team/Resolution team which shall be forwarded to the Branch Resolution Team for further processing along with all the required documents
2. Death Certificate of the Mortgagor
3. Legal Heirship Certificate or Will alon-g with Indemnity and Declaration from the Beneficiary/s
4. Affidavit cum Indemnity from legal heirs of the deceased mortgagor and Surviving mortgagor
5. Identity proof/KYC of legal heirs of the deceased mortgagor and surviving mortgagor

** In case the property is jointly owned by the mortgagor and co-mortgagor, the title documents shall be handed over jointly to the legal heirs of the deceased mortgagor and the surviving co-mortgagors.

** If the deceased mortgagor is a Karta of HUF, co-parceners shall be the legal heirs

** If legal heir is a Minor, Natural Guardian or in absence of Natural Guardian to Court appointed Guardian as per Guardianship Certificate shall represent the Minor for all purposes.

** The Title Deeds may be handed over to the constituted Attorney of the Legal Heir(s) authorized by virtue of a Power of Attorney (“POA”) where any of the Legal Heirs is unable to visit for collection of documents. The POA should be duly stamped and notarized/registered as per applicable laws of state of execution in favour of the person who will be collecting property Documents.

If any POA is executed outside of India, the same is required to be attested by General Consulate of India/ High Commission of India/ Indian Embassy/ Apostilled and then sent to India. The same is required to be duly stamped as per the applicable laws of the state where it is first received.

EXCEPTIONS

However, the Bank may require legal representation for release of Title documents in the following circumstances:

1. Bank has reasonable reasons to doubt the genuineness of the claim
2. Dispute amongst legal heirs where all the legal heirs of deceased and surviving mortgagors do not provide indemnity and NOC
3. Critical or High Risk Cases which involve conflict of interest, litigations or possibility of litigations or dispute in succession as per the governing Act

In such scenarios, the following additional legal documents may be procured;

1. Succession Certificate
2. Letter of Administration
3. Order from Civil Court of competent jurisdiction
4. Survivor Member Certificate/Family Tree Certificate
5. Guardianship Certificate, if the legal heir is a minor

The above mentioned details are the broad guidelines and not exhaustive. Any other documents submitted by Borrower/co-borrower or any legal heir of Borrower/co-borrower or mortgagor, Coparceners in case of HUF, Guardian in case of where Legal heir is a minor which are not mentioned above, shall be subject to necessary allied checks and due verification from the concerned Bank authority. The final decision will be taken at the sole discretion of the Bank”