31st March 2011
Dear Forum Members
I am raising my query for and on behalf of my friend "X"
"X" acquired a small piece of land near Chennai, He had paid the entire consideration and the sale deed has been registered in his favour. "X" is a married person survived by his wife and a 17 year old daughter.
"Y" is a friend of above "X". Mr.Y is in construction contract business and he had suffered some losses. "Y" was in need of some money and he approached a individual financier for loan. The financier agreed to give the loan provided "Y" provides some security. Towards security for the loan borrowed by "Y", the land document of Mr.X was delivered / deposited with the financier. It appears that Mr.X (owner of the land) has also signed some papers with the financier.
Mr.Y (borrower) has not serviced the loan properly and had defaulted in payment of interest and repayment of principal to the financier. Now Mr.Y is also not traceable.
Unexpectedly Mr.X had died yesterday (30.03.2011). Before dying Mr.X had informed about this transaction to his wife and daughter who are unware of this issue all along these days. The lady is a house wife and daughter has just written her plus two exams. Mr.X is the sole bread winner of the family who was in service of a small private company. The family is now left in dark.
My query in this connection is what will happen to the propery owned by Mr.X, the documents (sale deed) of which is available with the financier. Whether the title to the property will automatically devolve to the wife of Mr.X. Can the financier claim the title to the property just because he is having the title deeds with him. What are the legal aspects of this issue.
I request the forum member lawyers to answer my query.
with regards
Muralidharan
