A long list of documents is a tedious nightmare which one might need while applying for a home loan. An identity proof, salary slips, employment proof, PAN card and credit statements are some of them. There is another pre-requisite for availing a loan: collateral security. One of the most common forms of collateral is the sale deed or the property title deed. A borrower may either submit this as a collateral or as a document mandatory for a home loan.

Generally, when banks collect documents from customers, these are stored in a central repository, usually handled by third-party agents. It is possible, then, that some documents may get lost or misplaced.

• In case the bank loses the original property title/sale deed, the customer/lender must demand from the bank a written acknowledgement of the same. He must insist that the bank file a complaint with the police, and give him a copy of the complaint.
• In case the bank refuses or delays the written acknowledgement, the customer must write a complaint to the bank. Attach with the complaint separate lists of original and photocopied documents, and the acknowledgement receipt received from the bank.
• In case of the absence of a response or an unsatisfactory response, the customer must approach the consumer court.
• To build a stronger case, get the incident published in leading newspapers- preferably one English and one vernacular newspaper.
• After having received written communication from the bank, the customer should file a police complaint stating the loss of original documents. Here, he must attach the list of documents submitted, acknowledgement from the bank, a copy of the complaint to the bank, and newspaper advertisements.
• There is an important difference between a 'lost' and a 'misplaced' deed. 'Misplaced' means that the document is in possession of the bank but has been wrongly placed. There is a scope of finding it at a later stage. 'Lost' means that the document is no longer in possession of the bank.
• The bank usually compensates the aggrieved customer as per its compensatory policies. But, if the matter moves to the court, then the judiciary will decide the compensation. Hence, as a precautionary measure, please verify such compensatory clauses with your bank in the initial stage itself.
• It is possible for the customer to obtain a true copy of the lost document. He must apply to the concerned sub-registrar's office where the original document was registered. After his application is assessed and verified, the personnel will issue a true copy of the document.
• In terms of compensation, banks can be asked to fulfil all formalities for obtaining the true copy. Alternatively, courts may direct banks to incur the cost of the required procedures.

If the original sale deed or pages from the deed are lost, the owner may face difficulty in selling the property. A potential buyer of that property may face difficulty in getting a loan for it. Keeping these in mind, courts direct banks to issue to the aggrieved customer an Affidavit cum Indemnity Bond (ACIB) as compensation in some cases. The ACIB compensates the consumers for the loss caused with respect to the property. For instance, the property may get sold at a lower price because of the absence of the original sale deed.