• Mortgaged property cooperative bank and EC time lines

My father( passed away in 2010) had purchased some agricultural lands down South in Tamilnadu near Sattur in 1995. We found a buyer and gave an EC which was taken in 2007 from 1987 i.e 21 years. The buyer went ahead and took an EC from 1975 to 1986 where some of the Survey Numbers were shown to have been mortgaged from 1975 to 1979. We found out that these loans were from a cooperative bank and have been waived off by the government. My question is since the land was sold to us without any discharge of the mortgage (we were not aware of it since the EC taken that time was after the mortgages were taken), is it necessary to go back so many years and go through the hassle of getting the mortgage released. Are there any risks to the buyer if we sell it based on the EC from 1987. Isnt there a min number of years for EC that is acceptable for sale of Agricultural lands. The person who sold the lands is willing to sign any document if it can help sell the lands.
Asked 2 months ago in Property Law from Chennai, Tamil Nadu
Religion: Hindu

There is no need to get the mortgage released by the coop bank now that its debt itself is time-barred. However, it has to be ensured that no suit is pending against the mortgaged property and there is no attachment as on date.

Swaminathan Neelakantan
Advocate, Coimbatore
460 Answers
2 Consultations

4.9 on 5.0



though a good time has elapsed still it will be better if you may get the mortgage released. The same will though not make any difference now.



Anilesh Tewari
Advocate, New Delhi
15920 Answers
235 Consultations

5.0 on 5.0

It is always advisable to take detailed title search of the property 


2) if you sell the land to purchaser you must execute indemnity bond to indemnify him If any claims are made for said land in question 

Ajay Sethi
Advocate, Mumbai
62506 Answers
3809 Consultations

5.0 on 5.0

If he is ready to sign take a registered indemnity bond from him stating that any charge,  lien or mortgage will be his liablity and he will make good any loss in future. 

Prashant Nayak
Advocate, Mumbai
9226 Answers
15 Consultations

4.8 on 5.0

If buyer is ready to purchase from you after executing indemnity then you can proceed. 

Mohammed Mujeeb
Advocate, Hyderabad
7695 Answers
3 Consultations

4.5 on 5.0

A mortgage is always a mortgage and a liability to repay on the part of the borrower.  It shall be lawful to discharge the mortgage money and enter into sale.




High Court of Madras 

Rajaganapathy Ganesan
Advocate, Chennai
1399 Answers
8 Consultations

4.9 on 5.0

1. ideally the mortgagee should be made a confirming party in the sale agreement to be signed between you and the buyer

2. however if the mortgagee is not available then if you can get hold of the mortgagor then he can sign as confirming party stating that the loan availed by him from the co-operative banks stand duly discharged

3. also the notifications or circular or order under which the said loans came to be waived can be attached to your sale agreement

4. this would give adequate protection to the buyer

5. a public notice can also be issued informing about the waiver of loan transactions touching your property and also informing them about the intended sale and inviting objections against such sale

Yusuf Rampurawala
Advocate, Mumbai
4022 Answers
17 Consultations

5.0 on 5.0

Generally when sale agreement is taking place related to a plot, it is better  to have at least 30 years of EC .In your case,as you are having more than 30 years of EC,it is sufficient.But as you mentioned that the particular land is under mortgage for certain period,it is better to take  release certificate from the bank,if it's possible.As it's a very old transaction ,it's bit difficult to find it.But make a try.

Seshukumar Kuchibhotla
Advocate, Hyderabad
57 Answers

Not rated

The mortgage loans availed on the landed property have to be discharged or there should be an endorsement that the loan have been waived hence there is no due against this property and the same should be reflected in the the register held by the regeneration department so that it can appear in the EC accordingly.

You may ask your vendor to get a No due certificate from the bank and also to execute the entry before the registrar so that the problem is solved instead of stretching the issue by asking irrelevant questions on this, because rule says that the property should be free from encumbrance whereas this appears to be an encumbrance hence the buyer may hesitate to buy to avoid risking his property being attached by the bank at a later stage

T Kalaiselvan
Advocate, Vellore
52562 Answers
632 Consultations

5.0 on 5.0

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