Mod cancellation happened after 4 years

Pankaj (Querist) 19 June 2023 This query is : Resolved
Hello,
I am planning to buy a resale flat From B .
Flat was purchased by A in 2008
Multiple loans taken by A on this flat and all those reflecting in EC - 2012, 2013 and 2015
A sells flat to B in 2017 - this sale deed is reflecting in EC
What’s alarming is MOD charge is cancelled in 2021 in name of A and new MOD charged in B
Despite all loan cleared by A ( B paid some amount to A and cleared loan of A in 2017)

How is it possible that sale deed happened in 2017 and MOD of A was cancelled in 2021? Reason being given by B is that due to system issue MOD cancel of A didn’t happen in 2017.. neither banker followed up nor B bothered and then one fine day in 2021 they did MOD cancellation of A and created charge of MOD of B whilst loan of A was cleared in 2017 itself and B also started availing loan in 2017 . How is this possible pls explain as I am planning to buy house from B . Is this Foul play ? Or this error of MOD cancellation forgotten is possible ?

Note banker of both A and B is same

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Quick Summary

A buyer is concerned about a property where the original owner's mortgage (MOD) charge was cancelled four years after the flat was sold to the current seller. Although the original owner's loans were cleared before the sale, the MOD cancellation and a new charge in the seller's name only occurred much later. The buyer is worried this could indicate foul play or a genuine banking error and is seeking advice on whether to proceed with the purchase, suggesting precautions like newspaper ads and obtaining a 30-year EC.

kavksatyanarayana (Expert) 19 June 2023
It seems to be a mistake of the Bank and also A. But actually, the registration to B couldn't be done. That's why in some states there are instructions to Sub Registrars that before proceeding to admin a sale or transfer document, they shall verify EC and if they satisfy then they may register it. However, you may obtain an affidavit regarding the property from the banker as well as from the party A.

Pankaj (Querist) 19 June 2023
Is this mistake possible as a genuine case . Also if I get affidavit from banker . Is it possible that property is pledged elsewhere in form of loan / revenue dept / IT dept etc during 2017-2021. Should I put newspaper ad in this case to avoid any future liability.Also MOD was not charged on party B in 2017 . Isn’t this alarming

Pankaj (Querist) 19 June 2023
Can I proceed to buy with this lapse in MOD cancellation ? Any obligations or future complications for me ?

kavksatyanarayana (Expert) 20 June 2023
No you must take precautions before purchasing. You get an ad in newspaper and obtain EC for 30 years. Do not go ahead. This transaction is very difficult and better to try another one.

T. Kalaiselvan, Advocate (Expert) 20 June 2023
You must exercise abundant precautionary measure while purchasing an immovable property to avoid the litigation that may arise in future.
All your doubts can be cleared only after proper scrutinisation of the documents related to the proeprty and any opinion given based on your information alone would be a misleading information.
Therefore you may better obtain a proper legal opinion from an experienced lawyer in the local and proceed only if recommended.

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