Hi,
I am planning to purchase a property(independent house) in hyderabad and I am struck with some confusion because one of the link document is unregistered and I am not sure whether that will lead me to some troubles.
Below is the history of the property and the problem I am seeing.
1. In 1966, land of 10 acres was registered on person A
2. Person A died and his legal heirs (wife and son) registed a GPA in 1988 to person B to sell the land by dividing it into individual plots.
3. In 1992, person C bought one of the plot (200 sq yrds) in the layout through an UN REGISTERED sale deed (Notary on 100 Rs Stamp paper).
<He later wrote a affidavit in 2006 declaring that he is the sole owner of the property and he bought it through un registered document>
4. In 1996, person C sold the property to person D and registered the transaction.
5. in 2004, person D died leaving two sons and wife as legal heirs. One son and wife made a release deed transferring their 2/3 share to another son (person X) making him the sole owner of the property.
6. In 2008, person X has constructed a home and is staying there since then.
He has also acquired a bank loan for the house.
7. in 2015(Now), person X has put that property for sale and I am planning to buy it.
I have below questions which are troubling me ever since I am thinking about it.
1. Is there any risk in buying this property because of the unregistered sale deed which happened close to 20 years back? if Yes, why did banks give loan?
2. If there is slight risk, is there anything that I can do now to remove that risk?
Any response and guidence is highly appreciated.
