In case originals of the title deeds are misplaced by the owner of a property, how should the purchaser protect himself?
This is fairly common. If the originals are found to be lost or misplaced or destroyed, the owners should be called upon to give a suitable indemnity against any loss or damage that the buyer may suffer in the event of any third party making a wrong claim to the property. There is also another reason for caution: A seller, sometimes, cannot produce the original title deeds because he has deposited these with a bank or financial institution to create a mortgage on the property. This is known as a mortgage by deposit of title deeds. It does not require a registered deed, like other forms of mortgage, and is a preferred means of creating a security, for this very reason. A property, which is mortgaged, continues to carry the burden of the mortgage even after it is sold until the mortgage is redeemed. So check on this before signing up for the property.
