Does the Sub-Registrar Office allow Buying of a land that is already mortgaged to a Bank? I mean do they register a property even though it has a bank mortgage?
I recently bought 2.42 acres of agriculture land in the district of Krishna Giri in Tamil Nadu, out of this 2.42 acre land 12 cents is under bank mortgage, the land owner says he and his other relatives took a Tractor, that was 5 years ago and as they haven't paid the installments properly the Bank took back the Tractor.
5 Years passed since he mortgaged this property.
At the time of buying this land, the owner told us that he will clear the mortgagee for us and also in the Sale Agreement in which the Owner signed there is a point clearly mentioned that the property being sold to us is clear without any legal issues and if there are any issues that come up in future then it is the responsibility of the owner and their legal hiers to clear them up for us.
The 12 cents was owned by the father and the rest of the 2.30 acre was owned by his 2 daughters. Now we own the land. The land registration has happened in my name.
But when we took the Encumbrance certificate for the 12 cents land it shows that there is mortgage during year 2007.
As per the money we paid, The cost of the 11 cents comes to Rs.30,000/- where as the cost of the tractor is 5 Lakhs. But the bank already took the tractor 4 years ago.
The registration happened successfully in the sub-registrar office. The sub-registrar office didn't put any restriction to buy this 12 cents that was already mortgaged to a bank.
The Encumberance Certificate says:"
04/07/2007 Mortgage without possession for every Rs.100 or part thereof upto Rs.1000 Rs.562000"
Now I am worried if there will be any problem in future from the Bank.
What I could do now.?
1) First of all I am wondering how the Sub-Register Office register our sale agreement even though the land was already mortiguaged?
2) As the owner took this tractor along with his relatives in a share basis, means those relatives also put their properties in morteguage for this tractor too. Now in order to clear the title for the 12 cents land that has been sold to us, what could we possibly do? Can I take the owner to the bank and pay some money to the bank to get this cleared?
