Loan/morgage of property
Querist :
Anonymous
(Querist) 08 May 2010
This query is : Resolved
A has taken a personal loan of rs 100000/-from b and signed and execute registered gpa,will,reciept,and notarised agreement to sell (property belongs to a)and handed over all the title documents to b as a security of said loan amount.
Please provide the legal opinion,or what is legal effects of aforesaid query.
Guest
(Expert) 08 May 2010
That's all! The property of 'A' now belongs to his creditor! He has signed all the things essential (GPA, Will (!), Receipt and also Sale Agreement) to convey proper title of the property to the creditor. This is the modus-operandi of a particular trader community at Tamil Nadu to acquire property through cheap modes (more than 1/3 of Chennai's posh residential areas belongs to them through this methodology!). If the person who has taken loan does not act properly, he will definitely loose his property.
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