Hi I would like to understand the legal complications pertaining to a property situated in Bangalore. I'm in the process of acquiring space as a prospective tenant in the said building which is a non residential property. The Original Owner has pledged this property to a money lender who has loaned him approx 6 Crores. arising out of a transaction pertaining to another said piece of land to which the original owner of this non residential building had brokered for. it has come to my notice that a sale deed has been registered in the lenders name as a security. through an MOU stating that it is only pledged on behalf of the above mentioned transaction.and not sold which is unbelievable given the contradiction in the subject matter. now the owner claims he is still enjoying absolute position of the said non residential property as the lender has not honoured the full payment of loan. but the said transaction has occured in the period 2015-16 ever since then neither has the lender recieved interest nor has he fulfilled his obligation of paying the loan amount in full. The original owner has also neither moved court nor has he made an appeal to cancel the transaction since the past 3 years post the creation of the transaction he is under duress but he assures that he will clear the outstanding balance that was already accepted in part and will ensure that the property will be free from all encumbrances. now my understanding is that the lender has paid the property tax for 2 years beginning from 2016-17 to 2017-18 and the same is reflecting in the property tax receipt Also bringing to your notice is the fact the property tax has not been paid in full based on the assessment of the building since its completion from 2010-11 by the original owner it has been considered as a vacant land under residential category. I would like to know that the property is safe to be invested and what are the implications for me as a tenant under tenancy rights.
1) dont invest in property
2) sale deed has been executed in money lender favour by borrower
3) it cannot be said property is mortgaged when sale deed is executed
4) if at all you take property on rental basis insist on money lender consent in writing
The property is having very much legal hassles as far as the title is concerned. I don't think the investment is safe
See if already a sale deed is signed the owner has no absolute right and the property title is not clear and dispute may arise in same therefore it would not be safe to invest in such property. See if sale is valid then in that case the present person claiming to be owner has no right to give property on rent.
NO, property will certainly face litigation. Sale deed in lender`s name, sale to you will be illegal until sale deed not cancel by order of court.
Even owner cannot put on rent.
1. Well, the tenant if indicted by the owner of the property then previous or subsequent mortgage of the same property does not cause any adverse affect on the tenancy rights of the tenant.
2. In other words whosoever is the owner of the property at present is entitled to rent and ut alone can initiate proceeding for eviction of tenant.
3. SO as long as you do not receive any letter of Adornment nor any eviction proceeding is initiated against you continue the enjoy the property and deposit the rent to whom you were doing such so long.
Dear Sir,
Viewing from both sides the property is under danger and both have equal rights to claim the property and the litigation may go for years. Better not to invest.
No, looking at the situation explained by you I don't think the property is safe for investment.
