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Mihir..... (Wealth Manager)     23 June 2016

Mortgaged property sold

Mr. A purchased a property by availing housing loan from a bank. After few years, Mr. A sold off the property to Mr. B without disclosing any details regarding the mortgage. Mr. A received the money and did not repay the loan to the bank. However, Mr. A continued to pay EMI for a year and then stopped. Mr. B demanding original documents from Mr. A but gave excuses. Now bank sent a notice for sealing the property. Society too did not inform Mr. B about the mortgage.


What are the options with Mr. B ? Mr. B does not want to lose the property and also cannot wait for 10-12 years of litigation. Mr. B wants to transfer the loan into his name, put the property on rent and then pay up the EMI. Can Mr. B do that?




 4 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     23 June 2016

Mr.B is having option only to obtain property papers by reliving mortgage from the Banker thrugh Mr.A. There must be understanding between Mr.A and Mr.B in writing the agreement. Banker action is right in this regard. So Mr.B must be allert to get the papers.















Kumar Doab (FIN)     23 June 2016

'Buyer Beware'.

B has grossly erred and was negligent.

B should have conducted due diligence in the matter.

Is it stated in sale deed that 'There is loan/mortgage on the prtoprtty being sold'?

B must atleast now show all docs on record to a very able counsel than proceeding on his own.


Mihir..... (Wealth Manager)     25 June 2016

Mr. A did not disclose the mortgage details in the sale agreement. Mr. A declared that the property was not under any loan/mortgage.

Upon investigation, Mr. A was involved in some questionable fast money growth scheme in which he incurred a loss and which is why he sold this property and did not repay the loan to the bank. Mr. A has also received few Income tax notices. Therefore, recovering any amount from Mr A will not be easy. Which is why Mr. B does not see a quick solution from a litigation.

Mr B was also not informed by the society regarding the loan from the property.


Kumar Doab (FIN)     25 June 2016

These are liabilities of A.

B must atleast now show all docs on record to a very able counsel than proceeding on his own.

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