shankar (Emp) 11 July 2012

Reg: buying property

Dear Madam/Sir,

This is regarding the property I wish to buy. The documents are clean and uptodate. However the property is in te name of the lady who has gifted this to her 2 daughters who are aged 12 and 8.

Now since this is a gift deed she has done and right now they have acute problems related to the bank loan they need to cough up they are planning to sell the property. Can this be cancelled in court as they have become defaulters to the bank ? And if it is cancelled or if the court gets the permission to sell can I buy it ? What are the long term implications to me ?

Thanks,

Shankar

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5 Replies

Anjali (student) 11 July 2012

You have not specified that whether the loan is against the property in question. If it is not then, the guardian of minor can't sell the property for any other purpose except for the Benefit & welfare of children and that too by the permission of the court. If, they sell the property without courts permission then after attaining the majority the child can challenge the sale. However if they manage to get court’s permission then the sale will be valid.

shankar (Emp) 11 July 2012

Thanks for the response Anjali.

Yes the loan they have defaulted is for the house they have brought. They have not been able to pay up the loan for the last 4 months and have defaulted.

So in this case they are planning to go to court to obtain the permission/cancel the gift deed so that they can sell the property and pay up the balance loan.

Again want to be double sure latter the children cannot challenge this ? And there would not be any legal issues for me in case if I've to re-sell at a latter point in time ?

Regards,

Shankar

Anjali (student) 11 July 2012

Yes, the donee can revoke the gift deed. Once the gift deed is revoked and the same is duly registered the children cannot challenge it. But, they are defaulters and the property in question is the same, they cannot sell this property to repay the loan, as it is the security. Bank will auction it to recover the balance amount.

This property might get you in trouble. So before you buy it be sure that all points you have raise here are sought legally.

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com)) 11 July 2012

1. Dont buy a hypothecated property unless bank gives an NOC.

2. Since the property is held in minor's name - then in that case without court's permission the sale is voidable.

Tread with caution !

shankar (Emp) 11 July 2012

Thanks for all the great inputs.

So are you saying that if the bank NOC is there and the court gives permission then this can be bought ?

As per Anjali's response then she says I would have trouble because they cannot sell the property and close the loan. The reasopn for them cancelling the gift deed and selling the property is to get rid of the creditors.

Also I would be intrested if there is any trouble for me in case I buy it.