• False non-encumbrance certificate

Sir/Madam,
I recently bought a plot of land with a one storey building which is being used for commercial purposes. The previous owner duped me into believing the property had been vacated/was being in the process of being vacated at the time of sale. He had also obtained a non-encumbrance certificate, enabling him to proceed with the sale. Although I now have possession of around half of the property, the remaining 2 tenants are refusing to leave. What is my legal position? Whenever I had gone to visit the property prior to the sale, I found the shutters closed. I later came to know that the owner and the tenants were collaborating in this plan.
Asked 7 years ago in Property Law
Religion: Hindu

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3 Answers

You ought to have conducted due diligence to ensue the title of the property was free and marketable.The tenant becomes a tenant jnder the new.buyer after the sale, so unless there is anything in agreement to sell which indicates that the seller had promised that he had vacant possession of the property you do not have a cause of action against him. Consult a lawyer with a copy of the sale deed and agreement to sell.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1) it is necessary to peruse your sale deed entered into with the seller to advice

2) in sale deed if builder had mentioned that he would deliver vacant possession of entire property and he fails to do so seek refund of your money with interest

3) also file complaint of cheating against seller

4) obtain copies of rental agreement signed by seller with the tenants

5) contact local lawyer

Ajay Sethi
Advocate, Mumbai
94720 Answers
7532 Consultations

5.0 on 5.0

Check there is a valid agreement of rent created by previous owner with tenants. If so ask the prior owner to solve the problems and provide the possession of the two shops. If he is not ready and willing you have to file a case of cheating against prior owner. Also thoroughly read the sale deed, what is mention about the possession of the two shops?

The status of tenant becomes a tenant after sale of the property. If the shops are continuously closed and nothing kept inside the shop room then break open the lock and take the possession.

Ajay N S
Advocate, Ernakulam
4073 Answers
111 Consultations

5.0 on 5.0

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