Property transfer and mortgage
2 years ago
Mr X bought a flat in Pune which has a joint ownership of Mr X and his father in 2019. Mr X took a education (global e advantage) loan from SBI against that property as mortgage. Mr X father died in 2021 and now SBI denies to proceed with money disbursement and have asked Mr X to transfer the ownership completely to his name or his mother's name instead. Now my question is
1. Can SBI deny the loan disbursement due to the reason that his father is no more, though they have all the papers of the property and also all members of family are ready to sign NOC
2. What is the process to transfer property from his father name to his mother's in Pune ?
3. Does the legal heir certificate from other state is valid in Pune for this transfer ?
4. Can this process be done in Tehsil office or is it necessary to move to court ?
SBI or any bank has no right to make such demands. They have to get some documentation from him to grant the loan and if he gave it and meet all other requirements, he may get the loan. He and his mother acquire the right to his father's property after his death. Please find a lawyer for knowing more details
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Lucem Leg
Responded 2 years ago
A.Dear SIr,
Banks have the right to deny for the loan disbursement because your father has expired and there was a joint ownership. Whenever the bank see these kind of cases they deny to disburse it until and unless the legal issue gets resolved. For that you firstly have to get succession certificate or legal heir certificate from the concerned court to show the legality to the bank after which the bank will disburse the said issue. The bank need the full ownership rights on the surviving member so it can be mortgaged legally.
For succession certificate or legal heir certificate, you will have to apply to the concerned court of your jurisdiction. It is necessary to get the property transfer in your name.
1. You may approach the higher authority of the bank as until and unless you do not provide the succession certificate or legal heir certificate, the bank will not disburse the said loan.
2. You may contact the local lawyer of your area concerned.
3. Yes the legal heir certificate is applicable to everywhere in India.
4. Through Tehsil office, the process can also be initiated.
Ayantika Mondal @ Prime Legal
Responded 2 years ago
Bank can't compel anyone to transfer the property to any person's name. They have to get proper documentation for rendering the loan. You and your mother acquire right on your father's property after his death. You can get a legal heir certificate from any state. Please contact a lawyer for knowing in detail.
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Jagannath S Pawar
Responded 2 years ago
A.Dear Sir
Bank is rightfully denying loan disbursement because of Legal issue involved in the subject property as father who is joint owner has expired. Only keeping papers with them.is not sufficient for them without full or adequate rights and title rest with the borrower. They are rightly demanding transfer of ownership from dead person to the existing ones.
NOC and keeping papers with the bank is not sufficient. They need ownership in surviving person so it can be mortgaged lawfully to them.
Legal Heirship or Succession certificate as case may be would b required from District Court or High Court as the case is.
Courts are only authorized to grant Legal Legal heir or Succession Certificate which can be submitted for transfer of ownership.
My answers are as follows:
1. Can SBI deny the loan disbursement due to the reason that his father is no more, though they have all the papers of the property and also all members of family are ready to sign NOC
Ans: You may approach higher officers or banking ombudsman.
2. What is the process to transfer property from his father name to his mother's in Pune ?
Ans: You may check with local lawyer or online.
3. Does the legal heir certificate from other state is valid in Pune for this transfer ?
Ans: Please check with local lawyer.
4. Can this process be done in Tehsil office or is it necessary to move to court?
Ans: Through Tehsil office it can be done.
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