Legal advice on mortgage
s mohanraj
(Querist) 21 November 2013
This query is : Resolved
Sir,
I purchased a house in Chennai with loan from HDFC and registered in Nov, 1995. EC taken before purchase was clear. After registration, I submitted the original sale deed to HDFC. Vendor gave a folder containing copies of past sale deeds dating back to 1959.
Recently when I went through documents in folder, two original sale deeds preceding the registered deed against my name were not available.
On checking, I found that vendor had taken a loan of 150000 from a small time finance company against promissory note in Mar, 1995 against a mortgage of these title deeds and registered the deposit of title deeds with sub registrar. As mentioned earlier, this was not reflected in EC.
I have been in peaceful possession of the house since Nov, 1995 and have been paying property tax etc. regularly.
I tried to trace the vendor and mortgagee for removal of the encumbrance. I came to know that the mortgagee finance company closed long back in the 90s itself. I am not able to locate the vendor also.
Under these circumstances
Are there any legal remedies to remove the encumbrance.
Will there be any issue if I try to sell the property. If a prospective buyer goes for legal opinion, what kind of advice will he be given.
Will prospective buyer get a loan from any private of public sector bank.
Regards,
ajay sethi
(Expert) 21 November 2013
please note that original chain documents of title are always demanded by any prospective purchaser before purchasing property .if previous original documents are missing prospective buyer will not purchase the property .
BAALASUBRAMANNYAMM
(Expert) 21 November 2013
If we take a loan from a bank and execute a mortgage deed/deposit of title deeds, the deed of mortgage should be cancelled after closing the loan account, by executing a separate deed of cancellation, wherein the bank and the Lonee should have to register the deed before the sub-registrar, where the mortgage deed was executed. Until and unless, a deed of cancellation was executed by both the parties, the said entry has been reflecting as long as you are taking E.C.
V R SHROFF
(Expert) 21 November 2013
Need to register the m deed before the sub-registrar, where the mortgage deed was executed.
