• Question about debt and real estate transaction

Hi,
I lent some money to person A (have promissory note). Person A is claiming he can't repay the money. Person A has already registered all his properties on his wife's name. We are planning to arrange to buy one of the properties owned by his wife by paying him the difference.

The question is, if his wife also has some debts, with promissory notes, can the owner of the promissory note (or debt owner) litigate the property we bought from her?

Thanks.
Asked 4 months ago in Property Law from United States
Religion: Hindu
1) wife has not mortgaged the property

2) she is at liberty to sell the property 

3) even if borrower has promissory notes he cannot set aside sale once regd sale deed is executed in your favour 

4)at most he can move court and seek injunction restraining lady from selling the property 
Ajay Sethi
Advocate, Mumbai
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Well, the effective way to enforce the debt is to keep the property under charge in the nature of mortgage which is mostly done by way of depositing with title deeds.
So if the wife has her original title deed with her then even if she has taken loan the same is not secured and the property would not be immediately encumbered.
So you can proceed to buy the property provided the title is otherwise clean which can only be established by perusing necessary title deeds which are absent here.
Devajyoti Barman
Advocate, Kolkata
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you can take search in court records as to whether there is any pending litgation in respect of the property 

2) you can also take search in sub registrar office as to whether title is clear and marketable or not
Ajay Sethi
Advocate, Mumbai
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The personal property of the debtor can be attached on court orders in execution proceedings if the civil court passes a decree in favour of the lender and against the borrower. You should find out if there is any civil suit pending against his wife, more specifically if a civil court has ordered injunction against sale of properties by her. Your title will be defective if you purchase a property the sale of which has been barred by the civil court through injunction. Engage a local lawyer to find out the status of any pending case. 
Ashish Davessar
Advocate, Jaipur
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Dear Querist
It will be better to get inspection of property documents from registrar office and also execute a declaration from her that this property is free from all legal issues and charge. 
Nadeem Qureshi
Advocate, New Delhi
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The question is, if his wife also has some debts, with promissory notes, can the owner of the promissory note (or debt owner) litigate the property we bought from her?


The borrower's wife if agrees to sell the property by adjusting the loan amount and taking the balance amount, then it is a perfect sale and cannot be disputed provided she executes a registered sale deed in favor of the so called lender.
If she has personal loans on her own name on the basis of promissory note, then the lender cannot claim her property for the repayment of loan without approaching court with a suit for recovery of money and filing an application for attachment of her properties before judgment for the purpose of security. 
Then also the property already sold or alienated by her cannot be attached, thus it is first come first served basis.
T Kalaiselvan
Advocate, Vellore
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How can I make sure that the property isn't in any litigations already and I would be able to register the property without issues?

You have to get the property documents and other relevant papers properly scrutinised by a local lawyer and get his opinion on this. 
T Kalaiselvan
Advocate, Vellore
14008 Answers
127 Consultations
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