Loan Against Property · Question

What happens to the original property papers while the loan runs?

Short answer

The lender normally keeps the original title documents in safe custody until the loan is repaid in full. You usually receive a signed acknowledgement or checklist of everything handed over. You keep using the property, but you cannot sell, lease or take another loan against it freely, because the lender holds the papers and a recorded charge. Ask for custody details in writing.

In more detail

Holding the original documents is part of how a lender protects its security. Without the originals, a borrower cannot easily sell the property or create a competing charge, and the lender keeps the evidence of title.

What happens in practice

Handover: you deliver the original deeds and related papers to the lender, which lists them in a receipt or a document checklist.
Custody: the lender stores them, often in a central or branch vault, sometimes through a custodian.
Copies: you can keep certified or photocopies for your own records, and you may request copies for specific needs.
Use during the loan: if you need an original briefly, for example for a court filing, the lender may release it against an undertaking, subject to its own policy.
Release: when the loan is closed, the papers are returned, which is covered in a separate answer on getting documents back.

Protecting yourself

Never hand over papers without a written, itemised receipt. Compare the list with your own record of what you gave, including every page or annexure. Keep the receipt safe, because it is your evidence of what the lender holds.

Do not accept a vague receipt

A receipt saying only "title documents" is hard to rely on later. Insist that each document is named and described, and that the lender signs and dates the list.

If the lender has created a charge by depositing title deeds instead of registering a deed, the custody of originals is even more important, because the deposit itself is what creates the security. The glossary covers this as an equitable mortgage.

Also ask what happens if documents are lost or damaged while in custody, and how the lender would help you obtain duplicates.

Key points

Lenders normally keep original title papers until the loan is fully repaid.
Get an itemised, signed receipt that names every document handed over.
Keep your own copies, and ask how an original can be borrowed temporarily, if needed.
Ask what happens if the lender loses or damages a document in custody.

Who this applies to

Borrowers about to hand over title deeds to a lender.
Owners worried about their ability to sell or lease while the loan runs.
Families who keep ancestral papers in a single bundle.

Last reviewed 3 October 2026

This answer is general information, not advice on your particular case. Terms, eligibility, and requirements change, so check the current position with the relevant institution or authority. Lalsar Holdings' financial advisory and financing work is advisory and facilitation only. Lalsar Holdings is not a lender. Sanction and disbursement of any credit facility is at the sole discretion of the partner bank, NBFC, or financial institution involved, subject to their own eligibility criteria and credit policy.