Guidance on property documents

reply17 3 Oct 2013, 17:04

When I went through property dosuments, to buy 2 bhk flat on resale, I found that the owner had mortgaged the property with an individual from whom he had taken a loan. The owner has also made a Power of Attorney in favour of that individual. The owner now intends to sell the flat, how should I take care of getting clear title of the property??

3 Replies

prudhvi 4 Oct 2013, 14:37

HAI,

YOU CAN DO ONE THING . THE PROPERTY WHICH YOU WANT TO PURCHASE FIRST PAY THE MORTIGAGED AMOUNT AND RELEASE THE DOCUMENT FROM THE MORTIGAGER. AND BUY THE PROPERTY WITH THE REMAINING AMOUNT FROM THE OWNER

reply17 4 Oct 2013, 16:51

Thank you for your reply.

I intend to buy the property on bank loan. Bank wont approve loan until title is clear, right? Is there any other way? Can power of attorney be made void?

AnonymousLLB 4 Oct 2013, 19:28

This is easily done:

1. If the creditor has a PoA in his favour, he will sign the sale deed “on behalf of seller”. Else, it will be the owner.

2. You will need to discuss with the owner and creditor, whom you will address the payment to. Also, record this understanding in the sale deed.

3. The bank will ask for a 13 year title search to be conducted. You should get in touch with a trusted real estate lawyer for this.

There are a few documents (MoU, sale deed) that will need to be drafted, and a few formalities (loan approval, execution, registration). Your lawyer will be able to handhold you through all this. There are also a few precautions you should keep in mind - if your lawyer is sufficiently experienced, he should be able to help you with those.

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