My father expired on 2nd september 2013 due to debt burden. He is a jewelry store owner and all the jewels in the store got sealed and kept in custody. My father has a flat and there is a loan on it. We are three in the family- 2 sons and mother.We decided to sell the flat since there is no any notice from the court. can we sell the flat? and we are using the money to dispose some part of debts incurred by my father. will we face any legal issues after we sell the property?
Asked 3 years ago in Property Law from Vijayawada, Andhra Pradesh
1. Yes, you can sell the flat with consent of the bank as its sues will have to be set off from sale proceeds.
1. Apart from the consent of bank you do not have any legal hurdle to sell the flat.
1) you can sell the flat after obtaining consent of bank to repay your bank loan
1. If the Flat has been mortgaged with the Bank, you can not sale it without the written consent of the Bank,
2. Bank also will not give you the consent unless you clear off its dues,
3. So, talk to the Bank and make the Bank third party in the sale agreement as per which the buyer will first pay off the Bank's dues for whcih the Bank will release the mortgage of the flat to enable you to sale the same to him.
1. If the flat has been mortgaged with bank it is practically impossible to sell it as mortgage of this nature is generally created by depositing with the bank the original title deeds of the property. Unless and until you have the title deeds in your possession no prospective buyer will agree to purchase the property.
2. Even if the title deeds are in your possession the prospective buyer, if he carries out due diligence test, will come to know that there is an outstanding loan, in which event he will not purchase the property if he is not willing to repay the outstanding loan to bank.
3. Ask the prospective buyer if he is willing to pay off the loan to bank. If he agrees you may propose this to bank whereupon bank may allow you to sell the property after the principal amount of loan along with interest thereon is repaid.