Bank asking for court consent from seller to give loan
Manish
(Querist) 17 October 2017
This query is : Resolved
Dear Experts,
I'm living in Bangalore and planning to buy an 2BHK apartment here in Bangalore.
The current owner has taken up the loan for this property..
I've also applied for the same bank and its approved.
Now when we both parties go to bank for disbursement, bank is asking seller to get court consent from the seller from whom he has brought the property. The current seller bought this property from his sister and the property was in name of sister and two minor children. The agreement b/w them clearly says that "this agreement is made b/w Mr Ramurthy and Mrs Priya, Ms anchal and Ms ruchi where in Ms Anchal and Ms Ruchi are represented by Mrs Priya, natural gaurian"
My question
1) Is this document really required? What is the importance of this document?
2) If a previous registration is already done ,so will it hurt me as I'm doing a transaction with Mr Ramurthy not with his sister and daughters.
3) Should I go to different bank?
Regards,
Manish.
Guest
(Expert) 17 October 2017
Any Transaction related to the Properties of Minors Would be Legally valid only with the Consent of Court
Guest
(Expert) 17 October 2017
Bankers are very much Right in demanding the same
Guest
(Expert) 17 October 2017
More over it would also ensure your Legal Safety.
Manish
(Querist) 17 October 2017
Thank you Mr. Narsimha.
But what surprises me and made me request this advice is that the same back at first place has given loan for the same property, without this document. So can this is consent be substituted with affidavite?
Guest
(Expert) 17 October 2017
A Mistake should not be repeated and it could be the negligence of legal opinion given while sanctioning that first loan.
Guest
(Expert) 17 October 2017
Obtaining the Consent Of Court would be the Valid Legal Remedy.
Guest
(Expert) 17 October 2017
Your problem seems to be purely hypothetical academic query, if you have not asked your bank about the reason for requisition of court permission? If asked, to get appropriate advice, you should have specified here the reason quoted by the bank.
Guest
(Expert) 17 October 2017
The property seems to be disputed one. Better get fully satisfied about non-encumbrance and to avoid any future legal problem before entering in to transaction .
Manish
(Querist) 17 October 2017
Dear Mr Jigyasu,
I checked with bank and as mentioned by Mr Narsimha ,its the bank who has missed out collecting it at the first place.
Dhingra ji,
Yes its seems to be disputed,as after taking everyone's expert advice I spoke to the seller and he says the property was in name of brother in law and sister with kids. Brother in law passed away ,and the bank confiscated this property along with three other properties in name of his broterh in law and the seller bought this particular property from his sister outside the auction , directly from bank .
Guest
(Expert) 17 October 2017
You may discard the transaction, if title is not clear.
Manish
(Querist) 17 October 2017
Dhingra ji,
The title is clear. The property is in name of Mr Ramurthy and the khata is also in his name only.
Guest
(Expert) 17 October 2017
If title is clear, what is disputed, if the title of the seller is clear and with what specific reason the bank asks for permission from the court?
Manish
(Querist) 17 October 2017
Dhingra ji,
It seems like the bank is safeguarding themselves. With little knowledge, I understand the bank forgot to take it at the first place (as pointed by Mr Narsimha too) ,and now the legal team wants it as any property with minors attached cant be mortgaged without Court consent ..So can i go ahead with the deal?
Guest
(Expert) 17 October 2017
Not your understanding, but the purpose of asking by bank should be quite clear. No specific advice possible unless the things are quite clear.
Better discuss at length with some local counsel by showing all the case relate papers.
Rajendra K Goyal
(Expert) 17 October 2017
You asked:
1) Is this document really required?
Reply:
Yes, the document is important. For selling property of a minor, orders from court is required.
You asked:
What is the importance of this document?
Reply:
Share of minor if sold without court orders may be challenged by the minors after attaining majority.
Rajendra K Goyal
(Expert) 17 October 2017
You asked:
2) If a previous registration is already done ,so will it hurt me as I'm doing a transaction with Mr Ramurthy not with his sister and daughters.
Reply:
Title with the seller is challengeable / defective, try to get the property with clear title to protect your interest.
Rajendra K Goyal
(Expert) 17 October 2017
You asked:
3) Should I go to different bank?
Reply:
Your priority should be to remove the defect, it would be in your interest.
Guest
(Expert) 18 October 2017
Sorry it seems some transcation on Minor property is done without court consent .
Title is not clear , minor after attending majority can contest all and bank and all will raise hands.
See Bank show they are reliable geniune etc. to common man ,inside many frauds and irregularities also takes place , Some time to meet target also officers do stupid things .
See doing registration paying stamp duty (its tax) is one thing but if two people do some wrong deed without proper procedure then all is illegal.
ANY PROPERTY OF MINOR ONLY COURT CAN ORDER SELLING OR ANY TRANSACTION ON IT WITH DUE PROCEDURE OF LAW NOBODY ELSE
Rajendra K Goyal
(Expert) 18 October 2017
Nicely explained by the expert Madhu.
Try to avoid the deal.
Guest
(Expert) 18 October 2017
@Rajendra K Goyal,
Your statement, "nicely explained by the expert Madhu", very clearly reveals that you have made earlier 3 posts with purely vague and irrelevant advice.
Manish
(Querist) 06 November 2017
Dear Experts,
Now the landlord has come up with "Power of attorny" being held by his sister to sell .Please share insights on this.
Rajendra K Goyal
(Expert) 06 November 2017
Who, why, when gave the POA and whether it is registered?
No opinion possible without going through the document and other related documents.
