What to do when I realize I was cheated in property deal
Querist :
Anonymous
(Querist) 11 July 2010
This query is : Resolved
I bought a flat through a real estate agent at Thane in 2007.All documents were given, but at the last moment, the seller said he had lost the original deed and gave a FIR,an indemnity bond and certified true copy. The Society cleared NOC and transferred the property to my name. Now, in 2010 July, I have come to know that this property was mortgaged with HSBC bank in Year 2006. The seller continued paying the EMI and stopped only a few months back.Now,the seller has moved from Thane to some place in West Bengal.
What am I supposed to do now? What are the consequences?
A V Vishal
(Expert) 11 July 2010
You have not mentioned whether you had given a public notice while intending to purchase the property. However, since the Police FIR and indemnity bond are with you, you need not panic. I suggest you to try to locate the vendor and ask him to settle the issue in case he is untraceable file or does not co-operate file a criminal complaint for cheating and breach of trust. File a case for stay of action against the property by the bank and for performance of the indemnity by the vendor also.
S. Bharath
(Expert) 12 July 2010
Mr. Vishal has prescribed the correct steps to be taken immediately.
Raj Kumar Makkad
(Expert) 12 July 2010
In similar cases generally sellers are not traceable so no use of FIR or civil suit for the enforcement of indemnity bond arises without having correct address of the seller/opposite party whereas bank is not bound by indemnity bond entered between seller and buyer without its knowledge so no stay order can be granted by any civil court in favour of buyer against bank authorities for taking the possession of the mortgaged property especially the jurisdiction of the civil courts has specifically been barred under the provisions of SARFAESI Act.
So I suggest the buyer to fight on various counts at the same time. If the arrears of the bank is marginal money then he should clear it after issuance of a public notice in the leading local newspaper.
Querist :
Anonymous
(Querist) 12 July 2010
Thank you.
To answer-I had not given any public notice while purchase of the property.
But, if the property is already mortgaged, how can the Co-op society give NOC for sale.
Is there any law that states that banks have to inform the Co-op society if a certain flat is mortgaged with them?
Uma parameswaran
(Expert) 13 July 2010
Not given a public notice is not a big lapse in the conveyance.
Yes.The bank has to inform the Co-op society.With out clarification Co-op society have no right to give NOC. You can take legal action against the Co-op society and the Bank.
