Bank is absolutely correct legal heir certificate would not suffice
2) obtain letters of administration or succession certificate from court in name of legal heirs
3) it would not take more than 6 months
Transfer of agreement of flat booked by unmarried male.
My younger brother booked a flat with private builder taking housing loan from HDFC. Now he was passed away in 2014 leaving his mother and married elder brother in family as father has already expired in 2013. Legal heir certificate has been issued by SDM on recommendation of Tehsildar in the name of his mother and Brother (my self). Since mother is also dependent on me we wish to transfer the agreement of booked flat in the name of both because only I am in capacity to repay the loan. Builder has issued NOC to bank informing that transfer of agreement be done in the name of both (Mother and brother). Now we approached bank for loan repayment showing all documents including legal heir certificate death certificate and NOC issued by Builder, but the bank is asking succession certificate from court of low telling the legal heir certificate is not valid for this purpose. What should I do now please suggest.
Asked 8 years ago in Property Law
Religion: Hindu
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5 Answers
1. The bank is right as you are not the legal heir of your younger brother as on his death only his mother being the class-I heir is her sole legal heir.
2.So succession certificate issued by the civil court will be made in the name of your mother only and not in your name.
3. Thereafter only you can apply for repaying the loan with the consent of your mother and other brother.
The bank is wrong in insisting succession certificate for transferring the immovable property.
The legal heirship certificate will be sufficient for the purpose.
However please be aware that your mother alone shall be the successor to yor decesed brother as class I legal heir.
You will come under class II legal heir category. The class II legal heir will come into picture only when there is no class I legal heir surviving the deceased unmarried male.
You can get a proper leg heirship certificate, approach the bank once again with a written application , get his refusal in writing and then escalate the matter with his higher officer or the top management after which you can initiate a legal action against the bank manager for refusing the service to the customer without observing the rules meant for this purpose.
He should not treat this loan transfer as movable property but he should treat this as immovable property only.
bank's this demand is unlawful because certificate issued by the SDM is proper and valid in law as a succession certificate. no need to file a declaratory suit. you should convince the bank to get advice from its panel advocate regarding validity of this certificate.
if bank insists to produce certificate from the court, you should file a declaratory suit and get declaration that you are the legal heir. you should make concerned bank as a defendant in this suit. therefore such order shall be binding on the bank.