Indemnity Bond in Case of Loss or Non-production of Title Deeds
KNOW ALL MEN BY THESE PRESENTS that I, AB (VENDOR) of etc. hereby hold and firmly bind myself unto CD ……… (purchaser) of etc. in the sum of Rs. ………… of good and lawful money to be paid to the purchaser, his heirs, etc., for which payment to be truly and faithfully made, I bind myself, my heirs, executors, administrators and representatives.
Sealed with my seal this ……………… day of ……… 19 ………
WHEREAS by an agreement dated etc. and made between the parties hereto, it was witnessed that the said AB (vendor) agreed to sell and the said CD (purchaser) agreed to purchase subject to a good and marketable title being made out All That Piece or Parcel of land, hereditament etc. fully mentioned and described in Schedule A hereto as an estate in fee simple and free from encumbrances, attachments, trust and lien, etc. at and for the sum of Rs. ………… AND WHEREAS in course of the investigation of the title of the said vendor it appeared that certain documents, namely, the documents mentioned or described in Schedule ‘B’ to these presents which are essential and necessary links in the chain of title were reported as missing not being in the possession of the vendor or anybody else on his behalf to his knowledge and it is not further known up till now in whose possession or custody and power the same were or are or likely to be at present. And whereas in answers to the Requisitions on Title the vendor has declared them as lost or mislaid and not pledged or deposited anywhere as security for any debt or claim and whereas the said purchaser on such declaration and assurance of the vendor as aforesaid has agreed to complete the said purchase upon the said vendor executing the conveyance of the said premises in favour of the said purchaser with all usual covenants including the covenant as to indemnity but nevertheless and in addition thereto upon the vendor entering into the above-written obligation conditioned as hereinafter expressed for the protection and indemnity of the purchaser. Now the above-written bond or obligation is conditioned to be void only in either of the cases following, that is to say:
1. In case all the said documents be hereafter discovered anywhere and shall be delivered to the said purchaser or his heirs, executors, administrators or assigns free of any costs, charges and expenses on that account and be effectually discharged from any estate, right, title interest or claim, demand etc. whatsoever if any in, to or upon the said premises acquired by any third party or parties adverse to or in derogation of the title of the said purchaser, his heirs, executors, administrators or assigns under or by virtue of the said documents or any of them.
2. Alternatively if for a period of 12 years or more from the date of these presents the purchaser, his heirs, etc., shall peacefully and quietly hold, possess and enjoy the said lands, hereditaments and premises, etc., without any claim, demand, interruption or disturbance whatsoever by any person or persons claiming any right, title or interest in the said property under or by virtue of the said documents or any of them, otherwise the same shall remain in full force and virtue and the said AB (vendor), his heirs, executors, administrators shall at all times hereafter remain liable for and shall fully and effectually indemnify and keep indemnified the said CD (purchaser), his heirs, executors, administrators and assigns against all loss and damage, costs, charges and expenses which he or they or any one of them may be put to or reasonably incur or suffer by reason thereof the said documents not having been delivered to the purchaser simultaneously with the completion of the said purchase.
Schedule of the property sold
Schedule of the title deeds not delivered
Signed, sealed and delivered
at ………… in the presence of: AB