Dear Lawyers, I need your legal opinion in reaching to a judgement of the purchase of a property. I have booked a Villa in NCC Urban Green province (https://www.nccurban.com/ongoing-projects/ncc-urban-green-province.html) and was doing my due diligence before the sale agreement is finalised. My Bangalore lawyer pointed out the NCC while buying the land did not obtain the family tree from the seller, which the builder did confirm. The builder do the the EC for the land and sale deed but no details about the Family tree. Does it mean that the property is at a risk of future litigation. Is it safe to buy the property, if the loan is sanctioned by SBI for my unit or do you still see possibility of legal complexities in the future. The indemnity clause highlights the below The below reference shall be used for Schedule B & Schedule C Schedule B is Site Described - This is in accordance to the Property Layout Schedule C is Villa described - This is in accordance to the Villa plan The ‘VENDORS’ hereby undertake that they have not entered into any agreement, arrangement, writing, contract or commitment or any obligation in respect of the schedule ‘B’ & ‘C’ properties, or any part thereof in favour of any other person till date. The ‘VENDORS’ do hereby assure and keep the ‘PURCHASER’ indemnified against all or any claims, trespass, encroachments, aggression, acquisitions and any other kind of adversities that may occur during the existence of this agreement to sell. The ‘VENDORS’ jointly assure the ‘‘PURCHASER’ that the schedule ‘B’ & ‘C’ properties are free from all encumbrances, charges, lien, mortgage, lease, injunctions, attachments, claims, and free from all differences and disputes as on date Please help me here with your valuable suggestions as I am investing my lifetime savings into it. Thanks
Every detail from the origin of property is must to verify title. Without it, purchase is not advisable. You cannot take advantage of such under taking against claim from familiarity members. Buyer must be beware before purchase.
Once property sold, only purchaser suffers. Such undertaking takes years to enforce through court. But your had earn money will stuck.
Mere because SBI has granted loan does not mean title is clear and marketable title to property
2) you should act as per your lawyer advice as he has taken search in sub registrar office
3) since family tree is not enclosed there may be other legal heirs who may claim share in property at later date
It is better to incorporate the following lines suitability in the indemnity clause .
THE VENDOR AND ALL HIS HEIRS , EXECUTORS AND ADMINISTRATORS SHALL AT ALL TIMES HEREAFTER INDEMNIFY AND KEEP INDEMNIFIED THE PURCHASER , HIS HEIRS AND EXECUTORS ,ADMINITRATORS AND ASSIGNS AGAINST LOSS , DAMAGES, COSTS, CHARGES AND OTHER EXPENSES IF ANY SUFFERED BY REASON OF ANY DEFECTS IN THE TITLE OF THE VENDORS OR ANY BREACH OF THE COVENANTS HERINUNDER CONTAINED.
Existing clause has some legal loophole which may create some ambiguity and disputes in some rare circumstances.
Further to my reply, please note the following.
1. Family tree is not certified by any govt. Authorities. So it's importance is less in law.
2. Insist for recording the history of previous ownership in the deed itself. Also check the previous deed for such history of ownership.
It will serve some meaningful purposes.
Family tree does not serve any legal purposes in reality.
Also issue a paper publication inviting any claim objection to the sell of the property from any person having any lawful right interest to the said property.
If the above Averments are there then they need to indemnify you in case of contingency
By the bank sanctioning the home loan, it cannot be said that the property is flawless.
If your advocate has pointed out some requirement it becomes the duty of the vendor to produce the reasonable requirement of the document required to be perused/scrutinised.
Since you have stated that it is your lifetime savings, why dont you exercise more caution in this regard.
You may follow the advise rendered by your advocate to enable him to recommend the safe buying
You have to approach a Good Lawyer with documents provided by the Vendor and after going through the same the Advocate will advise you, if any further documents required from the Vendor.
Don't be hurry in purchasing any property without proper scrutiny of documents by a Good Lawyer
If the seller had acquired the property by way of succession (from his ancestors), then the family tree of the seller was mandatorily to be furnished to NCC, who would then see if there was any minor interest or any other persons interest in their family.
If the property was the self acquired property of the seller, then his family tree would not be required. In any case, if the outer limit of 12 years from the date of purchase has been completed, nobody can object to it after the lapse of this period.
Also as per the clauses mentioned in the sale deed, the vendor becomes responsible for any disputes over the subject property. Hence in my opinion it would be safe to proceed to purchase the property.
1. Yes you can go ahead with purchase if vendor is ready to Insert indemnity clause in the sales deed and agreement.
2. It can save you from any claim from legal heirs of seller as you can claim the losses from builder in case of any litigation.
