• Title deed stolen and privately mortgaged

A's husband B steals the title deed of an apartment owned by A. 

B takes the title deed and gives it to C a money lender for 25 lakhs at 3% interest. C also prepares a sale deed in which is given that A sells the apartment to C.  

A gets to know of this 8 years later(now).  B has not been in touch with A for a very long time. 

A had rented out the apartment soon after purchase that is 10 years ago.  

The present situation of  documents with A: 

The electricity bill and Property tax are in the name of A. 

The Rental Agreement is still in the name of A. 

The EC checked a few months ago is clear. 

A wants to sell the apartment now. 
 C knowing this blackmails A that that C can 

The questions:
1. C has the original title deed and a sale deed that states the property has been transferred to C.  But no proper registration in Registration Office had been done and every other document shows A as the owner.  Does the kind of private mortgage done by C have any value?  In other words,  can A or A's property  be harmed through C in any way now? 

2. If yes, how?  

3. And what can A do to be safe in selling the property? 

Thanks.  Any queries and answers appreciated.
Asked 10 months ago in Property Law from O' Valley, Tamil Nadu
Religion: Other
1. This sale has no value. THE A should immediately file a civil suit for declaration of the subsequent sale as sham and void transaction and for setting aside the same.
2. Seek injunction as well.
3. Before the litigation settles the title of A straight ,A will not be in a position ot sale due to lack of prospective buyers.
Devajyoti Barman
Advocate, Kolkata
5207 Answers
54 Consultations
4.9 on 5.0
The mortgage cannot be created without the consent of the mortgagee. For the sale of the property the owner has to execute the sale deed in favour of the prospective buyer. The remedy to be adopted by A is filing of a lawsuit for judicial declaration of her ownership to the property. Unless and until the civil court declares the mortgage and subsequent sale deed as illegal the two instruments will stand their ground. C can take possession of the property if there is a mortgage or sale in his favour, to preempt which A can seek a stay against dispossession.

Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
1) if title deeds have been stolen by husband has the wife filed police complaint against husband ?

2) has public notice been issued for loss of title deeds? 

3) if property has been mortgaged to C then C can create problems in sale of property by A . 
obtain injunction restraining sale of property by A 

4) A can obtain certified copy of title deeds from sub registrar office 
Ajay Sethi
Advocate, Mumbai
23240 Answers
1219 Consultations
5.0 on 5.0
Hi, As per law "A" is the absolute owner of the property, Now the problem arise about the originals of the documents is with "C".

2. A, can lodge a police complaint stating that she lost the original documents and also make a paper publication to that effect.

3. With the help of the police complaint and paper publication, through certified copies of the documents you can sell the properties to any body of your choice. 
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
1. C has the original title deed and a sale deed that states the property has been transferred to C.  But no proper registration in Registration Office had been done and every other document shows A as the owner.  Does the kind of private mortgage done by C have any value?  In other words,  can A or A's property  be harmed through C in any way now? 
If A is the owner of the property and have not signed the alleged sale deed or any mortgage papers, it  is a case of forgery done in connivance of C by B.
It is not binding on A.
A can lodge a criminal complaint against C if he is not returning the original title documents to her.
A can implead her husband B also in the criminal complaint for forgery and cheating offences.
A can very well sell the property to anyone of her choice, C cannot put any restriction nor can  can obtain any injunction order against this.
If C resorts to any illegal activity , A can make a fresh complaint on C for this too.
T Kalaiselvan
Advocate, Vellore
14026 Answers
127 Consultations
5.0 on 5.0
1. The mortgage is a bad mortgage since A is the title holder of the property who has not handed over the Title Deed to C and also that it is required that a letter of deposit of the title deed is taken from the mortgagor by the mortgagee as an evidence that the mortgagor /title holder has deposited the title deed of his/her own wish and has not been deposited by anybody who has stolen it,

2. No. The property of A can not be mortgaged by B to C,

3. A should lodge a police complaint stating that her title deed has been found to be stolen and deposited by her husband to C for taking loan. She then can collect certified copy of the said title deed and sell her property.
Krishna Kishore Ganguly
Advocate, Kolkata
12113 Answers
231 Consultations
5.0 on 5.0
1) you don't have original title deeds of the property . Before any person buys property he would want original title deeds inspection . Hence C is threat for sale of property 

2) any purchaser will want to know whether police complaint had been filed and public notice issued regarding theft of originals 

4) settle with C and then sell property or proceed legally against husband and Lender 
Ajay Sethi
Advocate, Mumbai
23240 Answers
1219 Consultations
5.0 on 5.0
1. Has C registered the sale deed transferring the property in his name by forging the signature of A? If yes, then the buyer will find out about this sale while searching the registry office. EC record, rental Agreement etc are not the evidence of ownership but registered deed is,

2. The future buyer can certainly file a suit against A for selling the property to him/her though it was standing in some one's name. Actually the Registrar will not register the said sale deed if the sale deed in favour of C has been made registered with A's forged signature. The future buyer can lodge a police complaint or file a criminal case also against A for cheating him/her,

3. No. If the sale deed in favour of C has been registered, A shall have to file a declaratory suit praying for a declaration that the said sale deed bears forged signature of A for which it should be treated as invalid and praying for a direction upon the Registrar to cancel the said Sale Deed. After that A can sell his property and register it in favour of the new buyer.
Krishna Kishore Ganguly
Advocate, Kolkata
12113 Answers
231 Consultations
5.0 on 5.0
1. A's objective is to not have the property in any long litigation process as A wants to sell the property as soon as possible but safely as well for future buyers.  So is C's blackmailing any real threat to the property? If yes, how? (Although I have received some answers for this question , I'd just like to make sure) 
C will certainly pose threat to the disposal of the property because he has lent the money on the basis of mortgage loan.  Though the loan was granted on the basis of forged documents, C possesses the original documents, so without original documents A cannot sell the property.  However A can give a criminal complaint with the police that the C is possessing her original title deed due to the fraud played by her husband who stole them for his own wrongful gains, hence seek their help to retrieve it.  Obtain an acknowledgement from police and apply for certified copy of the registered title document from registrar's office and proceed with the  disposal as per proposal by providing the acknowledgement of police for the complaint to make sure that this document is held by a third party illegally for which legal actions are going on.  This step will help to prove the genuineness while selling the property.




2. Can the future buyers of the property file any suit against A if they are approached by C and shown the original Title Deed and Sale Deed between C and A? 
The above suggested step will help to avoid such unpleasant situations. 




3. Is it just fine for A to go ahead with the sale of the property after a police complaint and public issue of lost Title Deed? (The title deed was stolen many years ago)
Since the mortgage or subsequent sale deed with the C reportedly executed by B fraudulently forging A's signature, moreover the document is an unregistered one, the suggested steps which is in the form of your question No.3, will help you to convince the buyer about the status of original title document to prompt him go ahead with the purchase.
T Kalaiselvan
Advocate, Vellore
14026 Answers
127 Consultations
5.0 on 5.0
Here A is the absolute owner of the property C has no valid document to show that he is the owner of the property. The best option is make a paper publication stating that A had lost the original document and declared it a s irrecoverably lost from her and try to sell the property to others . If any person has complaint against this come with in 14 days. If C will come then she A, can lodge a police complaint against B and C .Also file declaration suit  and also seek injunction against them 
Ajay N S
Advocate, Ernakulam
1915 Answers
19 Consultations
5.0 on 5.0
1. No sale deed is valid unless it is registered by paying the required stamp duty,

2. So, A should now file a missing diary regarding non availability of the title deed or lodge a police complaint against B for stealing her title deed,

3. After that A can sell her property,

4. C can not do any thing legally since it was a bad mortgage and also as A has never sold her property to C giving him rights to further sale the property.
Krishna Kishore Ganguly
Advocate, Kolkata
12113 Answers
231 Consultations
5.0 on 5.0
1) equitable mortgage of title deeds did not require registration 10 years back 

2) unregistered sale deed is not admissible in evidence . 

3) get hold of original title deeds then sell the property . 

4) you can  issue public notice of loss of originals , file police complaint against husband and money lender 
Ajay Sethi
Advocate, Mumbai
23240 Answers
1219 Consultations
5.0 on 5.0
Title deed is not mere a paper,it has value in the eye of law. Original title deed is the important document in a sale .If the original of Title deed is not in your hand it may leads to litigation. So first you have to declare the original is lost from your hand or it may fraudulently pick up your husband and handed over to C with out your consent. So settle this issue you first. 
Ajay N S
Advocate, Ernakulam
1915 Answers
19 Consultations
5.0 on 5.0
A cannot dream of selling the property the title of which is not in her favour anymore. The sale deed executed in C's favour has to be declared as illegal by the court before A can sell it. Only a foolish prospective buyer will agree to purchase the property on the basis of a true copy, and even if A succeeds in finding such a buyer the title will not pass as it basic law that no seller can convey a title better than his own title. So A should file a lawsuit against B and C to cancel the sale deed.

Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
The title to a property flows from the title deed and not the property tax receipt and the electricity bill. Police has no role to play in this. A lawsuit is required to be filed by A and C to get the sale deed declared illegal. This apart, a criminal complaint for forgery and cheating can also be filed against C and B.
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
You have been suggested many ways to safely handle the issue but you are not understanding them.
Well, please note the following:
 
1) Lodge a complaint with the police against C for retaining your original title documents on the basis of some fraudulent transactions made in collusion wit your husband B and threatening you with dire consequences if you insist him to return them.



2)  Obtain an acknowledgement on the complaint made, apply for certified registration copy of the title document from the registrar's office afresh stating the reason that the documents are held by C on some fraudulent means.


3) On the basis of the certified copy of the title deed, you may inform the buyer the facts and go ahead with the sale of the property.



4) The buyer after buying the property faces any litigation due to this, you may step in to solve the issue legally.



Since the mortgage that took place forging your signature on the fabricated documents, it is a fraud played on you hence the same is not binding on you.  Moreover since the same is an unregistered one, it has no legal validity.
T Kalaiselvan
Advocate, Vellore
14026 Answers
127 Consultations
5.0 on 5.0
Hi, you can intimate the real facts to the buyer normally person who has capacity to face the consequences will buy the property Ex: Real estate agents etc.

2. You can also lodge a police complaint against C who keep the original documents and request the police to get back the  documents in your hand. Try both ways.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
1) A can furnish indemnity bond

2)it would be harmful to A as A has agreed to indemnify purchaser in case any claims are made 

3) A would have long drawn legal battle ahead if C  issues you and the purchaser legal notice  and files suit against A and the purchaser 
Ajay Sethi
Advocate, Mumbai
23240 Answers
1219 Consultations
5.0 on 5.0
Can an Indemnity bond be used in this situation by A?
What type of indemnity bond, what are the contents.?



In other words,  after obtaining True Copy can A sell the property,  having an indemnity bond with the buyer so that there is little doubt about title?
The sale deed itself indemnifies the buyer about the relief measures that can be taken by him against the vendor, hence a separate indemnity bond need not be executed for the property proposed  to be sold through a true copy rather certified registration copy of the registered sale deed. 



If C ever approaches the buyer with the stolen Title Deed and the  Sale Deed (unregistered),  and the buyer intending to extract money from A, threatens A that A will be dragged to court based on the indemnity bond,  what steps can A follow to safeguard themselves and  the property from getting into litigation?  
The buyer cannot initiate any action against the vendor until there is a court case in this regard, even if there is court case, he can very well defend his case by sailing with the vendor, however if is demanding money for wrongful gains, the vendor has to deal with him accordingly.
T Kalaiselvan
Advocate, Vellore
14026 Answers
127 Consultations
5.0 on 5.0
1. Look there is no bar to the sale of a property on the basis of a true copy but a prospective buyer has to be a moron to purchase a property on the basis of a true copy knowing that the property is mortgaged. Furthermore, a mortgaged property cannot be sold without the consent of the mortgagee.

2. The title will remain defective unless the mortgage deed and sale deed which have been executed are declared as illegal by the court.

3. You should instead of finding shortcuts should file a lawsuit to challenge the mortgage and sale deed.
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0

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