Gaurav 08 December 2015

Purchasing a property

I am about to purchase a property from sons when parents has died. There was no nominee and property is still in their name. Their sons has now got legal succession heir certificate which they say that gives them right to sell property. Now I have presented the file to govt. bank for loan. Response in a day or 2 is expected after verification by their lawyers.

1. Dose Legal succession certificate (varasnama) alone gives them the right to sell the property ?
2. Can I soly depend on verification done by lawyers of the govt bank like SBI/PNB ?
3. I have given some token. They are insisting for 10% bayana? Should I go forward ?

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6 Replies

G.L.N. Prasad (Retired employee.) 09 December 2015

In case of investment for permanent home, most essential this required is peaceful possession. It is always better to involve your own advocate, as fees charged may be small fraction to value of property. So get opinion from Advocate who is reputed.

Simple succession certificate is not enough. There should be a link document giving the seller a a good title, mutation in registers, having a legally valid document, tax paid receipts, Encumberance certificate are some of essential documents required. First let the seller mutate the property in one of the legal heir's name. Either they can all sign the sale deed or a legal heir having power of attorney on behalf of others is sufficient. NOC from Society if it is a flat etc. requirements are there. Go as per Advocate opinion and let him study the documents. (Succession certificate is different from legal heir certificate)

Gaurav 09 December 2015

Many thanks Prasad Ji...

Jatin Mittal (Corporate Lawyer) 10 December 2015

Hi Gaurav

Thats not sufficient proof of their ownership. Ask them to get the land mutated in their name on the basis of their certificate. Once the entry in mutation records is made, that becomes the conclusive proof of ownership. Further, the general market practise is that 10% of the amount is paid when the agreement to sell is made between the parties. Now it depends on the comfort level and trust between the parties. For any clarifications, feel free to write to me at mittaljets@gmail.com. No charges for consultation.

Gaurav 11 December 2015

Hello Mittal Ji,

Thanks for your advice, just mailed you details

T. Kalaiselvan, Advocate (Advocate) 18 December 2015

The legal heirship certificate should contain the names of all legal heirs including the widow of the deceased and the mother of the deceased (provided thy are alive) and all the legal heirs are to execute the sale deed document.

You may get a legal opinion from your side through a local lawyer before venturing into purchase.

Gaurav 19 December 2015

Thanks T.Kalaiselvan Ji, The property was in name of both mother & father (both died by now). They do not have grandmother alive. They have only two sons.The legal heir certificate contains names of both sons. Then their will be Mutation (in MCF) on both names and sale deed will be executed by both of them.