santhosh.ganesh revankar 22 July 2023

Indemnity bond for purchase of property

I am planning to buy a property which is having 2 floors ground and 1st. The property was self acquired property from X to Y in year 1983 via sale deed registration. Y had 2 children's and he had gifted ground floor to "A" and 1st floor to "B" via registered gift deed in 2014. "A" has lost his gift deed so has a certified copy and also both A and B had lost the original sale or mother deed that was executed in 1983. "A" is a NRI and has given registered GPA to "B" and "B" will be executing the sale deed with me. I am planning to get a indemnity bond signed by "B" the GPA holder for the loss of property documents, so in future if any claims arise, he will be responsible for the claim.

Can I get a indemnity bond executed in this case?
If I execute a indemnity bond, then for how many years it will be valid?
Should I execute a indemnity bond or get a affidavit from the seller? what is the difference?

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7 Replies

kavksatyanarayana (subregistrar/supdt.(retired)) 22 July 2023

1.,2., and 3: Not necessary. If A NRI gives POA to B, B can sell the property of A.

Wuok Toud 23 July 2023

What is the validity of indemnity bond?

Arjun shikawath 23 July 2023

Sir, I think it should be "B" can sell to anyone.

Also, I have a doubt what if the GPA issuer files a case in future will it stand?

Also, please give us some knowledge on validity of indemnity bond whether limited for certain year or for life time?

Also what are those points 3?

Dr. J C Vashista (Advocate ) 23 July 2023

Pure hypothetical time pass question paper.

santhosh.ganesh revankar 23 July 2023

Dear everyone,

Since I am the purchaser and since the chain link documents are lost but certified copy is present, I just want to make sure no third party comes and inform me that I have the original copy and file a case against me.

So for my safety one of my friend suggested me this indemnity bond thing.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 23 July 2023

Even if you get an indemnity bond it cannot prevent a third party from making claims. Indemnity only means that if a third party claims rights to the property, the indemnity giver will help you to defend and bear related expenses as stated in the indemnity bond. Indemnity bond itself has no specific limitation period. But for third party claim for a property in alleged adverse possession, there is a limitation period according to the law on limitations. I think it is 12 years. But please check.