Sagar 24 September 2025

Plot purchase on as is where is basis

Owner is selling NA plots which are not mortgaged itself, But land parcel for internal road and amenity,open space is mortgaged to private individuals. The owner is selling the plot in as is where is basis. If owner default in mortgage repayment, whether the purchaser of the plot and society formed afterwords will have the liability for this mortgage.

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Quick Summary

When buying a plot of land on an 'as is, where is' basis, it's crucial to understand the implications of existing mortgages on shared areas like internal roads or open spaces. While you may not be directly liable for the owner's mortgage defaults, purchasing a property with a defective title due to existing mortgages carries significant risk. It is highly recommended to seek legal advice from a local solicitor and ensure the seller clears all outstanding loans before finalising the sale deed to avoid potential disputes.

3 Replies

T. Kalaiselvan, Advocate (Advocate) 25 September 2025

The purchaser of the vacant plot cannot be held liable for the mortgage loan dues that the owner has to pay to the bank, however if there is any mortgage loan pending you may better ask the seller to clear the loan and then execute the registered sale deed or else you better do not venture into this risky investment which may attract dispute or litigation at a later stage

Dr. J C Vashista (Advocate ) 26 September 2025

You have stated, that, "........land parcel for internal road and amenity, open space is mortgaged to private individuals............" implies that title of the plot is defective (under mortgage).

It is better to seek professional opinion and advise of a local prudent lawyer with relevant land records for proper appreciation of facts.