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Buying a property with sale deed not having mortgage loan closure details.
11 months ago
I'm planning to buy a BDA property which is not having mortgage loan closure details of previous owner in sale deed. But the previous owner has closed it and related release documents are present with the seller.
Our advocate says it's not advisable to buy such property. Is it fine to go ahead? Is it mandatory to mention mortgage release document in sale deed ?
A.Dear Client,
In case of laon on a mortgage of property, a Deed of Mortgage is executed between the mortgagor and the Bank(Mortgagee) and registered with the Registering Authority and on closure or forecloser of said loan a Deed of Release is executed between the same parties and registered again with RA declaring therein that the loan has bee repaid and the property is now encumbrance free.
Therefore, in the absence of the Original registered Deed of Conveyance of the property which was mortgaged with the Bank and the original Deed of Release of mortgage, it is not advisable to go ahead with the deal.
In case of laon on a mortgage of property, a Deed of Mortgage is executed between the mortgagor and the Bank(Mortgagee) and registered with the Registering Authority and on closure or forecloser of said loan a Deed of Release is executed between the same parties and registered again with RA declaring therein that the loan has bee repaid and the property is now encumbrance free.
Therefore, in the absence of the Original registered Deed of Conveyance of the property which was mortgaged with the Bank and the original Deed of Release of mortgage, it is not advisable to go ahead with the deal.
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A.Dear Sir,
If it was under mortgage then closure details of previous transaction is necessary. Please find out whether such mortgage was only by way of deposit of title deeds. In such case get an endorsement from the concerned Banker that entire mortgaged amount was repaid.
If it was under mortgage then closure details of previous transaction is necessary. Please find out whether such mortgage was only by way of deposit of title deeds. In such case get an endorsement from the concerned Banker that entire mortgaged amount was repaid.
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