Hi, I am about to buy a house(already built house), We did agreement from seller. Now we came to know that seller has cheque bounce cases in the court and lot of personal debts outside . But the property wise it is looking good : - Since last seven years the original property documents of the house is with LIC (Seller got loan from LIC with the property documents ) Note: Even i am applying loan with LIC to buy that property - Encumbrance certificate shows last purchased by the present seller name since 2004 and no court attachments as of now. My questions: 1) Let me know can we proceed with the registration since property wise it is looking good . 2) In future our property will not be in trouble because of his cases and debts ? Is there any chance after registration they can attach the property ? 3) What are all we need to make sure before registration to be in safe side in future. 4) How can i find if they are any present cases on the property in the court ? ( note : In EC it is not showing any legal cases as attached )
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
1) you can enter into registered sale deed for purchase the property
2) since the property is mortgaged to LIC and loan is being taken from LIC only you should not have problems in purchase of the property because of seller other debts
3) ask seller to furnish details of cases filed against him and orders passed by court till date
4) regd sale deed would contain indemnity clause to indemnify you against any claims made
Thanks for your Quick reply it is very helpful and has given me confident to buy the house . I have below doubt. 1) EC is the only place where we can find the active court cases if any on the property? Is there any way to find if any court cases on the property ?
1) you can take search in civil court records in your city
2) it would contain details of cases filed and orders passed if any
3) also obtain from seller on affidavit details of various cases filed against him and orders passed therein
1. Why are the documents with LIC? If the property is still under mortgage then it cannot be transferred by him without the consent of the mortgagee.
2. If the attachment has not yet taken place and also there is no injunction against the sale of property by him then he can pass a valid title to the buyer.
3. Ascertain if the civil court has ordered injunction against him.
4.Conduct due diligence to ensure that the title is free and marketable.
1. Cheque bounce cases has nothing to do with the property.
2. You must ensure that if he had any other personal loan on the basis of the photocopy of the property documents with private financiers, who for recovery might have filed a suit by attaching the property. This you need to confirm from your reliable source while verifying the vendor's character and antecedents.
3. Since the property is under mortgage loan with LIC, you have to get NOC from them before buying it or even making a payment towards advance for the sale consideration.
Without confirmation from LIC and also without the vendor producing the original documents, you cannot proceed with the registration of sale deed in your favor.
4. If at all there are chances that the vendor has availed loan from some private financiers, they may try to attach the property through money recovery suit, but you cannot find an entry to this effect in the encumbrance certificate.
5. What prevents you from taking a proper legal opinion about this property from an experienced lawyer in the local because you may land in trouble when you proceed on the basis of your own thinking that you know everything about this hence you dont need to spend on legal opinion by a lawyer.
1) EC is the only place where we can find the active court cases if any on the property? Is there any way to find if any court cases on the property ?
From EC you cannot find the pending litigation on this property.
You have been misguided that EC will reveal all the details of the property.
People are more cleverer than what you can imagine about them.
When a person is habitual in borrowing he will borrow from many people by cheating some or all, thus there is no guarantee about any adverse development in this regard that may emerge and endanger your investment in this property.
Even your advocate in the local may not be able to find out the external liabilities that might have incurred against this property, hence it is your prudence which will save you now or never.