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Ramesh (manager)     08 May 2011

PROPERTY UNDER BANK COLLATERAL

Hi,

I am looking out for a flat in chennai.  I came across a builder who has acquired a land on joint venture.  The history of the property is as below

The property belonged to the local cooperative society till 1924.  The society has sold it to Mr. Ram in 1924.  After the death of Mr. Ram , Mr, Laxman ( his son ) has acquired possession of the land.  In 1965 , Mr, Laxman  has sold the land to Mr. Kumar.  Mr. Kumar in turn has developed the land into plots and sold to different parties.  Mr. Arun  is one among them to buy 3 grounds.  After the death of Mr. Arun his sons along with the builder has made a joint venture to develop these grounds in flats.  My question is

We have the following documents

1. Sale deed made by Mr. Kumar to Mr. Arun

2. confirmation of Mr. Arun's legal heirs.

But, the document of sale deed made by Mr. Laxman  to Mr. Kumar in 1965 is not available.  Will that be a problem .  Will there be any problem if Mr. Laxman had gone for some bank collateral etc.  Since, he has sold it 46 years back.

Request your expert advice, whether i can proceed with buying this flat without this document

Regards

Ramesh

 

 



Learning

 6 Replies

adv. rajeev ( rajoo ) (practicing advocate)     09 May 2011

get the 14 years encumbrance certificate, there you will get about the encumbrance on the property.  And If you want to purchase the property give a public notice in a widely circulated paper calling for the objections form any other person  within a given time.  If no body comes then you can go for it.

1 Like

Narendra Sharma (Consultant)     09 May 2011

 

The document of sale deed made by Mr. Laxman  to Mr. Kumar in 1965 MUST BE available.  That MAY be a problem.  There will CERTAINLY be a problem if Mr. Laxman had gone for some bank collateral etc,  EVEN IF he had sold it 46 years back. BECAUSE, SALE DEED WILL CERTAINLY BE IN POSSESSION OF BANK by way of Equitable Mortgage. Ask the Bank for NOC etc under RTI Act.

YOU SHOULD NOT proceed with buying this flat without this document / NOC from Bank. 

Regards-N.K.SHARMA

Ramesh (manager)     09 May 2011

Thank you sir. But, Mr. Laxman has sold to Mr. Kumar about 17 acres of land in 1965.  Mr, Kumar in turn has made it into several plots and has sold it to multiple peoples.  And the flat that we are looking at is about 3 grounds in the 17 acres.  We have the layout of the plots etc.  Even in this case, will it be a problem for all the land owners of the 17 acres plot.

Moreover, we donot know whether he has gone for collateral.  In this case, how do we get a NOC from a bank. 

The EC from 1965 to till date is clear.

The Registrar office pertaining to that locality doesnot have the document as it has been damaged in their records and they could not retrieve it.

In this case how should we proceed

Narendra Sharma (Consultant)     09 May 2011

 

Even in this case, it MAY be a problem for all the land owners of the 17 acres plot. The property DISPUTES MAY GO ON FOR DECADES.

HOWEVER, AS the EC from 1965 to till date is clear, YOU MAY PROCEED.

Give Public Advt. as advised above, deliver a copy to all Deptt. concerned under Acknowledgment and keep all record in safe custody PERMANENTLY.

Ramesh (manager)     11 May 2011

Thank you sir.  As far as this area is concerned, it has several houses built in this layout.  Understand from the builder that - the legal heirs of Mr. Arun who have made the joint venture with the builder doesn't have the documents, as they came to know about this property only after their father's death ( they are NRI ) .  Hopefully, the neighbours in this layout should have it.  If they do have a copy, can we get it.  If they are not willing to give it, should we give advt. and proceed.  Please advise us .

Narendra Sharma (Consultant)     11 May 2011

 

YOUR CASE LOOKS STRANGE, AS NO ONE HAS DOCUMENTS BUT CONSTRUCTION IS GOING ON since long. Recently, 1,200 houses demolished at Jabalpur. FURTHER, "Minal MALL" demolished, and  40 houses are at the risk of shortly being demolished at "Minal Township" BHOPAL.

YOU should NOT proceed BY giving advt. YOU MUST BETTER FIND OTHER PROPERTY WHERE TITLE IS CLEAR. Regards-N.K.SHARMA  


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