Right of guarantor
arpit mehta
(Querist) 04 January 2012
This query is : Resolved
WHEN GAURANTOR RIGHT PREVAILS OVER BORROWER...IN MY CASE I AM GUARANTOR AND I AM READY TO PAY THE MORTGAGE MONEY SUBJECT TO CONDITION POSSESSION OF PROPERTY...DO I HAVE THE RIGHT OVER THE PROPERTY IF I PAY THE AMOUNT...PLEASE REPLY..THNX
Adv Ankit Gupta, 09812153530,
(Expert) 04 January 2012
If this clause mention in agreement that u if u pay u will get possession over property than only u will get. other wise its ur duty to pay the amount in default of taker.
Devajyoti Barman
(Expert) 04 January 2012
Definitely not, guarantor only ensures payment of loan which does not mean the titile over the mortgaged property.
arpit mehta
(Querist) 04 January 2012
thanku mr.ankit gupta ji....but this point comes under which section...borrower fails to pay den if guarantor is ready to pay the amount then can the guarantor have right over the mortgage property...
arpit mehta
(Querist) 04 January 2012
look here i am the guarantor and i am intrested in the property so can i buy the amount of it if the borrower does not pay..
thnx mr devajyoti ji...bt plz i need ur help guys...
ajay sethi
(Expert) 04 January 2012
if as guarantor you have made payment on account of failure of principal debtor to make payment you will have to file suit fro recovery of money paid by you .
Adv Ankit Gupta, 09812153530,
(Expert) 04 January 2012
Sec 140 says that where a guaranteed debt has become due, or default of the principal debtor to perform a guaranteed duty has taken place, the surety upon payment or performance of all that he is liable for, is invested with all the rights which the creditor had against the principal debtor
Nadeem Qureshi
(Expert) 04 January 2012
Dear Arpit Mehta
as you are a guarantor in this matter, what are the term & condition between you & borrower, it is very important part.
bhagwat patil
(Expert) 05 January 2012
First you have to pay the amout to the lender, then sue the borrower for the said amount in that litigation you may add the property.
mahendrakumar
(Expert) 05 January 2012
just because you had paid the loan amount as a guarantor,you will not get the title of the property automatically.
if you had paid the amount solely,then,for the same you will have to file a civil suit.
Advocate. Arunagiri
(Expert) 05 January 2012
As a guarantor, if you settle the dues to the creditor, you will step into the shoes of the creditor.
What ever rights the creditor is having, you will enjoy the same.
Shailesh Kr. Shah
(Expert) 05 January 2012
you have no right on property.
Alternatively, you can ask borrower to register property in your name in lieu of discharge of his debts by you.
Deepak Nair
(Expert) 05 January 2012
A guarantor does not have a right on the property. You can definitely file a suit for recovery as advised by experts above.
vasant kulkarni
(Expert) 05 January 2012
IN SHORT ENTER IN TO SALE AGRREMENT WITH THE BORROWER ON THE CONDITION OF PAYMENT WILL BE DIRECTLY MADE TO BANK.HOWEVER THAT DOES NOT MEAN THAT,IT CAN BE DIRECTLY SOLD TO YOU.YOU WIL HAVE TO PAY PREVAILING MARKET PRICE TO BORROWER.
Deepak Nair
(Expert) 05 January 2012
Rightly explained by Mr.Kulkarni
prabhakar singh
(Expert) 05 January 2012
The law you are asking for is laid down in Indian contract Act1872 section 140 and 141.
Where a guaranteed debt has become due, or default of the principal debtor to perform a guaranteed duty has taken place, the surety upon payment or performance of all that he is liable for, is invested with all the rights which the creditor had against the principal debtor.
A surety is entitled to the benefit of every security which the creditor has against the principal debtor at the time when the contract of suretyship entered into, whether the surety knows of the existence of such security or not; and if the creditor loses, or without the consent of the existence of such security or not; and if the creditor loses, or without the consent of the surety, parts with such security, the surety, the surety is discharged to the extent of the value of the security.
prabhakar singh
(Expert) 05 January 2012
To enforce the right a suit would be required.
Jai Karan Nagwan
(Expert) 05 January 2012
If debtor is not paying back, get him declared insolvent under the law of insolvancy and take over the property is the best way to teach lesson to defaulter.
Devajyoti Barman
(Expert) 05 January 2012
Whatever you do, you can not become its owner.
So sooner you forget the property, it would be better for you.
Raj Kumar Makkad
(Expert) 06 January 2012
You have only liability and not right. Liability qua the repayment of loan amount and no right over the property as the same shall be released free from mortgage to true owner who so ever he may be.
V R SHROFF
(Expert) 06 January 2012
IN MY CASE I AM GUARANTOR AND I AM READY TO PAY THE MORTGAGE MONEY SUBJECT TO CONDITION POSSESSION OF PROPERTY...DO I HAVE THE RIGHT OVER THE PROPERTY IF I PAY THE AMOUNT...PLEASE REPLY..THNX
Ans:
You cannot pay conditionally. You are Bound to Pay.
You get Right to Recover thru Court, the amount paid by you, and can seek Attachment Before Judgement.
your " SUBJECT TO CONDITION POSSESSION OF PROPERTY.." do not work, and a useless demand.
[On auction, you can acquire this property possession. ]
RAJU O.F.,
(Expert) 13 January 2012
If the borrower failed to repay the loan you can issue notice to him and close the loan so as to invoke the right of subrogation to acquire the securities given to the bank.
