RBI has notified banks, non-banking financial institutes, housing finance companies, asset reconstruction companies, and others to release all the documents of properties of buyers in just 30 days.
RBI has asked all the regulated entities to release the actual documents of the property of buyers within 30 days and remove charges when the registry is done. This is to be done only after the full settlement of the loan account.
RBI said,”Regulated Entities (REs) must release all movable/immovable property documents upon receiving full repayment and closure of loan account. However, it has been observed that the REs follow divergent practices in releasing such movable/immovable property documents, leading to customer grievance and disputes.”
Buyers will have three options for collecting their property documents from banking outlets or even from where their loan account has been serviced or any office of RE, wherever their property documents are available. Buyers can select any of these options according to their choices and preferences.
If the sole borrower and joint borrowers are no more, then REs can return the property documents to their legal heirs. Furthermore, if borrowers haven’t got their property documents even after 30 days, then RE will have to explain the delay and the solution.