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Sadashiv Vaidya   10 March 2026

Deceased brother house mortgaged to myself against loan and poa

I had loaned X amount to my youngest brother (ladies tailor by profession) in Bhopal in year 2000 for purchase of a 600sqft plot and further loan of XX amount to build a 2BHK house on it. I had made loan agreement and power of attorney for the subject loan with my brother and countersigned by his wife. The loan was for 15years period. But due to poor economic conditions of my brother, he never paid any loan instalment or the interest. The POA and Loan Agreement states that I am empowered to sell the house and recover my due Loan amounts.

He was married to daughter of his maternal uncle from 40gn village from Maharashtra and lived with his wife  and 2 children there until 2006 when his wife threw my brother out of this house due to their quarrels as she doubted him, and then forcefully occupied the house. I helped to let my brother work in my shop on rental in Bhopal since 2013.  My brother was in legal battle with his wife since then for divorce (living separately since 2006 till 2026), maintenance issues etc. while the 2 children were living with his wife. His Divorce application was about to conclude in Bhopal civil court in March’2026 as ex-party.

My brother passed away natural death due to cardiac arrest in Feb’2026. My brother’s wife have two (2) adults sons, eldest son is married. Younger son staying with mother at the subject house.

My query is as follows:

Q1. Will my deceased brother’s wife will automatically become owner of the said house as she was legal wife and now widow?

Q2. And can her two sons name can also be conditionally added to transfer deeds if applicable, should she choose to get remarried? She has done lots of illegal activities and frauds like getting water, electricity connection, forged document to get ration cards, BPL cards for such benefits etc.

Q3. Can I claim my dues as out of court settlement by returning the Loan Agreement and power of attorney and to avoid any further dispute. Or, should I approach court!?

Q4. Or, can I put condition to her for returning loan agreement documents, to include her 2 son’s names and if she gets remarried, her name/claim form the said house will be null and void thereafter, through affidavit or such legal documentations? I want to help my brother’s two(2) sons to get their legitimate shares / rights in the property.

Please advise. Thank You!



 5 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     10 March 2026

The wife and children of your brother have equal rights over the property. After the demise of your brother, the Power of Attorney is not valid.  Did the wife and children of your brother know about the loan and POA?  Does your brother sign the loan agreement with two witnesses?  Is it on a stamp paper?  The loan amount period has also lapsed.  So you cannot claim it legally.  You request them amicably to repay your loan amount.

 

1 Like

Dr. J C Vashista (Advocate )     11 March 2026

There are multiple issues involved in your queries such as limitation for recovery, authorisation to lend money, acceptance  by LRs of  deceased borrower etc. etc.

Q 1 The widow with all LRs of deceased shall have their right in the properties left behind by deceased as per succession / testamentary deposition.

Q 2-4. Subjective academic and hypothetical queries. 

Show relevant documents to a local prudent lawyer for proper analyses of facts, professional advise and necessary proceeding.

1 Like

Sadashiv Vaidya   11 March 2026

Thank You sir...greatly appreciated for your prompt response.

A1. Yes. Wife and her children know about the loan and PoA.

A2. Yes. My deceased brother had signed the loan agreement and PoA with Two(2) witnesses, one being his wife, and other one is my brother-in-law(alive).

These papers are signed on Legal Stamp Paper duly notorized as well, and were presented in family court during course of trial of divorce matters of my deceased brother/his wife.

Thanks for your advice ... Sairamji!! 

T. Kalaiselvan, Advocate (Advocate)     11 March 2026

1.       As the court has not passed divorce decree as on the datge of his death, his wife will remain his wife, it means she has full rights as his wife over his properties left behind upon his intestate death.

2.     His children are his legal heirs hence they are also entitled to a share as  a right.

3.    The power of attorney stands cancelled upon the death of the principal and if the loan agreement expiry date is beyond three years as on date then you may not be able to recover that too, hence better consult an advocate and clarify the limitation aspect.

4.     You said that youjr brother's wife has countersigned the loan agreement, it is not understood that what type of counter signature or what do you mean by counter signature.

1 Like

Shweta Bharti (--)     17 March 2026

 

Hello, Sadashiv.

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