Annexure – 36 Title Opinion

Points to be noted by IOB Panel Lawyer: Branch to give a copy of this with the
Title Opinion Format to the Panel Lawyers while requiring Title Opinion

1. Identify the owner of the property and get his full particulars.

2. Find out the nature of his right. The owner’s right may be absolute,
conditional or limited. It is always advisable to deal with absolute rights.

3. Trace the title of the owner for at least 30 years in case of advances above
Rs.1 Crore. The title of the owner may be by purchase, by inheritance, by
partition, by gift, by settlement or by grant.

4. Ask for and see all the documents in original.

5. If there are any conditions in the documents, examine the conditions, and if
the conditions restrict or prohibit the transfer or alienation, do not proceed.

6. Find out the extent of the property and see whether it tallies with the one
mentioned in the documents. Verify the survey number, location and
boundaries.

7. Examine the sketch or plan of the property.

8. Verify with the revenue records and confirm that the owner is in possession
of the property and has paid all the dues and taxes applicable.

9. See if necessary orders for conversion is obtained in case the land is sold as
house sites in case the property is assessed as an agricultural land.

10. Verify the documents with the Encumbrance Certificate obtained from the
SRO concerned. EC should be obtained for at least a period of 13 years.

11. If there is a building, see whether proper planning permission has been
obtained. Also verify the completion certificate and latest tax receipt.

12. All documents examined, should be original to ensure that the owner has
a clear title and that there are no encumbrances on the property such as lien
or mortgage or any other charge. Non-availability of any original document
should be taken seriously. If the originals might have been lost by
misplacement, fire, or by some other means, ask for an affidavit, from the
owner to the effect that the original title deeds are really lost and that he has
not created any charge, or deposited it with anybody. A paper publication
can also be given and a Police Complaint could have been lodged. In such
cases, lawyer should confirm that the loss of the original title deed will not
affect the good and marketable title of the present owner and if such property
is taken as security by the Bank.
 Format of Title Report (Revised):
TITLE REPORT - ANNEXTURE TO THE LAWYER'S covering letter with Certificate of Title

1. Name of the borrower :

2. Name of his/her father/husband :

3. Whether borrower is the owner of the :

property, if not, who is the owner and what
is his/her relationship to the borrower

4. The status of the owner of property – :

whether individual, HUF, Firm or Private
Ltd. Or Public Limited Company or One
Person Company or Limited Liability
Partnership

5. Whether the Owner of the Property is a

Minor? If so, whether the permission of the
city civil court or a district court or a court
empowered under section 4A of the
Guardians and Wards Act, 1890 to
mortgage the property?

6. Whether the property proposed to be

mortgaged is owned by a Trust? If so,
whether the Trust Deeds permits such a
Mortgage? Whether permission from Court
or any other Authority is required for such
Mortgage?

7. Description of property :

Sl.No Extent Survey Situated in Boundaries

No. (please give
door/plot No.
name of street,
village and
Dist.)

8. Property is within the Registration District of &

sub-registration District of

9. List of Title documents originally produced :

and proposed to be deposited with Bank–
please also state whether the documents
produced are original/ or Certified copy of
the Registered Deed, photocopy etc.
10. Property Card is in the name of:

Whether latest tax/kist receipts have been

produced? For how many preceding years
tax/kist receipts are produced?

11. List of further documents called for and :

verified before rendering opinion

12. History of title based on documents of title :

(for atleast the past 30 years from the date
of giving the title report)

13. Whether the mortgagor is intending to

mortgage the lease-hold rights of the
property? If so, what is the residual period
of lease?

Wether specific NOC from the lessor is

submitted?

14. In whose name the patta stands – In the :

name of the present owner or predecessor
in title?

15. Details of encumbrances, if any and if so, :

how they are discharged (EC for minimum
of 30 years to be verified in case of
advances above Rs.5 Cr. and EC for
minimum of 13 years to be verified in case
of all other advances)

16. Whether any minor interest :

litigation/attachment/ charge is involved in
the property as evidenced in the title
deeds/documents/EC?

17. In case of Agricultural Lands, whether :

Chitta 10(i) extract / Adangal or any such
equivalent Revenue Record Extract as per
the respective State practice verified?

18. If property is building, is the plot in :

approved layout?

19. Has the building been constructed after :

approval of plan by relevant authorities and
assessed to tax?
20. Is there any excess/ vacant land attracting :
provisions of the applicable Land Ceiling
Acts?

21. Is the property affected by Urban Land :

Ceiling and Regulation Act, if so, whether
permission of relevant authority been
obtained for creating encumbrance?

22. Is the title and possession of the party to :

the property clear, absolute and marketable
and valid mortgage by deposit of title
deeds could be created:

23. The list of additional documents like "Nil" :

E.C. for subsequent period / affidavit
indemnity required to be obtained by the
bank

24. Any other remark which the lawyer :

rendering title deed opinion wishes to make
that may be relevant for the Bank to decide
on the acceptability of the referred
immovable property as Security

25. Whether there is any indication or doubt to :

show that the land belongs to Govt. or it is
under acquisition proceedings of the
Govt.?

26. Is there any bar for mortgaging the lands as :

per any local law?

Eg. Prohibition for offer of agricultural

lands as security for borrowing outside the
State or Commercial / Non agricultural
borrowings

27. Whether the bank has right to enforce

SARFAESI after creation of mortgage by
deposit of title

28. Whether the immovable property offered as

security is properly demarcated

29. Whether the property is identifiable

(Yes/No)

30. If the referred Immovable Property is

accepted as a Security by the Bank,
subsequent to mortgage by Deposit of Title
Deeds, what are the procedural formalities
 to be completed by the Branch and the
respective timelines? Please advise.

[For Example: Registered Memorandum,

CERSAI Registration, R.O.C. Charge
Registration etc.,]

31. Certification: I personally visited the Registrar Office, searched the records
and ensured the correctness of the entries in the Register and there is no
omission of any encumbrances in the EC.

32 I also certify that the said deed dated ………… has been registered in the
Sub- Registrar Office in the name of the owner Shri …………….. and the
document is genuine and can be acted upon.

33. I certify that the documents listed by me in Column 9 and 23 above are
perfect evidence of title to the immovable property proposed to be offered
as security.

34. I have carefully gone through the original title deeds and other documents
of the immovable property proposed to be offered as Security before giving
my report on the title to the property as mentioned above.

Signature of the Advocate

Note to the Branches:

1. Flow of title to the proposed mortgagor from the parent documents has to
be ensured.
2. The proposed mortgagor’s name as appear in the title deed should tally
with the name appearing in the latest tax receipt, Electricity Bill, Water Tax
Bill, Patta and identity proof produced by the proposed mortgagor.
3. Legal opinion given by our panel advocate has to be perused carefully and
ensured whether advocate has mentioned the perusal of all the
documents given by the branch and also mentioned the nature of
documents whether original , certified copies and copies of the relevant
documents.
4. In case if he has not perused the documents given by the Branch or wrongly
mentioned as copies against the documents which is given original for his
perusal, supplementary opinion is to be obtained from the advocate after
furnishing the original documents available with the Branch.
5. Normally encumbrance certificate has to be obtained for the last 13 years.
However, in cases, where the immediate prior/parent document is dated
 prior to the period of 13 years covered by the EC, then Encumbrance
Certificate has to be obtained from the date of the parent document and
all the documents appearing in the Encumbrance Certificate has to be
scrutinized in order to ascertain clear and marketable title of the property
free from any encumbrance.
6. If parent deed is not given by the proposed mortgagor, the reasons for non
availability of the parent deed to be ascertained from the mortgagor and
also to verify in the legal opinion whether advocate has discussed about
the non availability of the parent deed and whether the reasons cited by
our advocate is acceptable and reasonable one.
7. If advocate has not given any reasons, then Branch should advise the
advocate to cover this aspect in his opinion about non availability of parent
deed and get supplementary opinion from the advocate.
8. It is to be verified as to whether the title deed standing in the name of the
proposed mortgagor is reflected in the encumbrance certificate.
9. Please ensure whether the advocate has given opinion as per our format
and he has filled up all the columns in the opinion to be verified. If any
column is left blank, advocate has to be advised to submit supplementary
opinion covering all the columns.
10. Please ensure the legal opinion is obtained from the approved advocate,
directly by e-mail followed by obtention of signed copy of the Legal
Opinion.