Absolute ownership of property
M Kumar
(Querist) 12 July 2013
This query is : Resolved
A property is mortgaged to Bank and later on sold by Bank through public auction after acquiring the property under SARFESI Act. However an agreement for sale was entered by the defaulter with someone else prior to the mortgaging the same to the bank. The agreement for sale was registered 10 days prior to the mortgage and more than three years old. As per one of the clauses of agreement, the period of agreement will automatically increase till the availability of clear title to be provided by the owner. Considering the above clause, the agreement for sale is still valid. Bank has already sold the property through public auction and claiming that it has absolute ownership of the property. Please advise whether Bank claim of absolute ownership with respect to the property is correct or the party who entered into the agreement for sale with the defaulter/original owner of the property can also claim his right on the property?
Khaleel Ahmed Mohammed
(Expert) 12 July 2013
If the agreement of sale was registered 10 days before to the mortgage. How the encumbrance issued?It is totally misguided by the defaulter of the loan to deceive the bank.When the bank issued the notice of auction the agreement holder would have raised objection and approached to the Bank DRT. Bank claim is absolutely correct regarding the ownership of the property.
M Kumar
(Querist) 12 July 2013
Thanks for the reply Sir. Agreement for Sale is registered which figured out when title search for the property is taken out by the auction winner for taking part loan from other bank. When Bank was informed about the same, they simply informed that they were not aware about the registered agreement for sale at the time of mortgaging the property. Can the party who has entered into the agreement for sale with the defaulter, harass the purchaser and take "Status quo" stay from the court? Further in future, will the existence of agreement for sale in the records create problem in getting the clear title clearance certificate during the sale of property by the purchaser to any other person?
Khaleel Ahmed Mohammed
(Expert) 13 July 2013
The agreement holder can not harass the purchaser at any time. His plea can not be entertained against the purchaser.The title of the purchaser is perfect.
