Letter of administration/ successioncertificate compulsory ?
Veeral Bhanushali
(Querist) 18 June 2020
This query is : Resolved
if the owner dies leaving behind a wife as a nominee and two children's, the query which arises from the following circumstances are as follows :-
1) Whether after the name being added of wife as Nominee by the society in share certificate, being a trustee can Nominee sale the flat to buyer with the consent of her children without incorporating their name in share certificate or making them confirming party in sale agreement ?
2) Whether Financial institutions without asking for LOA, Succession Certificate to prove the legal heirship can give loan to buyer ? basically Financial institution insist to provide this legal documents or else they done give loan, hoq to get ride of this scenario
3) Is it mandatory for society to emboid the name of all legal heirs along with Nominee before selling the flat to buyer ?
4) Whether Society can force to add the name of all the Legal heirs in share certificate before giving NOC for selling the flat to buyer ?
Note -
a) Will is not been executed
b) Already aware about the relation between Nominee and Legal heirs.
c) Any help given in earlier post and whoever is going to help by commenting, it is highly appreciated, Thank you !
Dr J C Vashista
(Expert) 19 June 2020
So many questions involved in your query.
1. Society shall tranfer share certificate in the name of nominee, without consent of other LRs of deceased member.
2. Financial Institution(s) shall definetly seek LoA / Succession Certificate.
3. Nominee can not sell the flat without consent and transfer of title of property in the name of vendor/wife.
P. Venu
(Expert) 19 June 2020
So many queries! However, you have not posted the material facts.
SHIRISH PAWAR, 7738990900
(Expert) 19 June 2020
Hello,
Society can transfer the share certificate as per nomination. There is no bar to consider others interest by the society. If you are aggrieved by the transfer of share certificate you have rights to challenge the transfer of society shares in the competent court of law. Society has no other obligation when nomination is provided.
Rajendra K Goyal
(Expert) 19 June 2020
You said:
1) Whether after the name being added of wife as Nominee by the society in share certificate, being a trustee can Nominee sale the flat to buyer with the consent of her children without incorporating their name in share certificate or making them confirming party in sale agreement ?
Reply:
Nominee is trustee of the legal heirs. The rights of the nominees will not prevail over that of the successors. In a situation where there is a nominee, the society will transfer the flat/shares in the name of such nominee and then normally leave it to the nominee to identify the legal heirs of the deceased to whom the flat/shares are to be transferred. Nominee is not the absolute owner of the property. To be on safe side, purchaser should ensure to get the property transferred in the name of all legal heirs before purchase.
Rajendra K Goyal
(Expert) 19 June 2020
You said:
2) Whether Financial institutions without asking for LOA, Succession Certificate to prove the legal heirship can give loan to buyer ? basically Financial institution insist to provide this legal documents or else they done give loan, hoq to get ride of this scenario
Reply:
Buyer should buy the property after names of all legal heirs are entered in the record, FI / Bank should not object to give loan if property purchased from all legal heirs.
You said:
3) Is it mandatory for society to emboid the name of all legal heirs along with Nominee before selling the flat to buyer ?
Reply:
It is not necessary for the society if nomination exists, it is legal heirs and the purchaser who should proceed to get this step completed.
Rajendra K Goyal
(Expert) 19 June 2020
You said:
4) Whether Society can force to add the name of all the Legal heirs in share certificate before giving NOC for selling the flat to buyer?
Reply:
Society may ask as the nominee is not the absolute owner of the property.
Raj Kumar Makkad
(Expert) 19 June 2020
1. The consent of the minor children hold no water. Mother requires permission from Civil Court under section 8 of Minority and Guardinaship Act seeking selling of the share of the minors.
Raj Kumar Makkad
(Expert) 19 June 2020
2. Financial institutions are very well within their approach as the nominee is not the owner of the entire property so LOA is required to be assessed the value of the property to be mortgaged with the banker or any other financial institution.
Raj Kumar Makkad
(Expert) 19 June 2020
3. Soceity is not concerned with the legal heirs. It can transfer the property even in the name of the nominee transfering the share in the name of the soceity record in the name of the nominee do no give a right of exclusive ownership to such nominee.
Raj Kumar Makkad
(Expert) 19 June 2020
4. Soceity while granting NOC shall have to mention the nomiinee of the deceased and not than that. If word legal heirs is to be got inserted then all 3 legal heirs shall have to be mentioned. Mother should not forget that she is owner to 1/3 share in the said property and she should not force the soceity management to issue a wrong certificate.
Rajendra K Goyal
(Expert) 20 June 2020
If the children are minor, order from court is required to sell their share. If the children are major, they should get their name entered in with the society as legal heirs and take part in sale process.
Rajendra K Goyal
(Expert) 20 June 2020
Banks are bothered regarding proper undisputed title of the property. They will decline if there seem to be any discrepancy in the documents. For loan to purchaser, sale deed should be from all legal heirs. Try to get legal heir certificate from Tehsil office.
Rajendra K Goyal
(Expert) 20 June 2020
Agree, society would transfer the property to nominee as per nominee registered with them. Yet it should bring the names of legal heirs on its record specially before giving NOC.
P. Venu
(Expert) 20 June 2020
The Society has no concern whatsoever with the property; its jurisdiction is does not go beyond the share in the Society.
Raj Kumar Makkad
(Expert) 22 June 2020
Role of the society is confined only up to the transfer of the property in the name of the nominee but such transfer do not give exclusive right of ownership to the nominee.
Raj Kumar Makkad
(Expert) 22 June 2020
A registered legal document or a court decree shall only be required in the matter intended by the author.
Guest
(Expert) 22 June 2020
Agree with Experts .................
