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Loan Against Property · Question
Short answer
A sale deed is the document by which ownership passed to you, so the lender reads it to confirm three things: that the seller had the right to sell, that the property described matches the one you offer, and that the transfer was properly executed and registered. Names, descriptions, boundaries, area and signatures all need to agree with your other papers.
The sale deed sits at the centre of what lenders call title verification. It is evidence that you hold the property, and the lender wants to rely on it because the property will be its security.
A lender, often through an empanelled lawyer, reads the deed for these points:
One deed usually is not enough. The lender also checks the earlier deeds, called the chain of title, to see that each owner before you held a valid right. A break in the chain, such as a missing earlier deed, raises questions that may take time to resolve.
Read your own deed first
Before applying, check your deed for typing errors in names, area or survey numbers. Corrections made through a proper rectification process are far easier to arrange before a lender finds them.
A deed that is unregistered, insufficiently stamped or inconsistent with property records may need to be corrected before the lender proceeds, and the lender decides what it will accept.
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