Problem for blood relative in case of bank defaults
6 months ago
I have a joint property with my brother. He has some unsecured loan in his name. He has defaulted on his loan. He is unable to pay his bank loan. Now he wants me to buy his 50% claim on the property.
Can I take his property?
Since I am his blood relative, I am afraid in future court may take this property for recovery?
Will my 50% share on the property is also under stake?
A.Dear Client,
The act of giving up one’s rights and claims in a part of a property in favour of another is referred to as relinquishing rights. A right cannot be given up without compensation; this compensation may take the shape of cash, a trade in goods, or a family arrangement. The “Deed of Relinquishment,” which must be signed by all parties, witnessed by two witnesses, and registered, is another requirement for giving up ownership of immovable property in favour of a co-owner. So, you can accept the proposal of your brother following the above procedure. But the real problem lies next if, on receipt of consideration money against the transfer of 50% share in the property to you, your brother escaped the repayment of his loan. Being a defaulter of a loan, a borrower can neither purchase nor sell a property even if he is a defaulter of any unsecured loan especially when the cause of action has already arisen out of default. So, to safeguard your interest, you need to make out a deed of family settlement putting a condition that your brother should write off his debt first before the execution of the Relinquishment deed in your favour and the entire debt amount shall be remitted out of the agreed consideration money to the lender directly by you on behalf of your defaulter brother and on receipt of an NDC/NOC from the lender/Bank, the proposed Deed of Relinquishment shall be executed by him in your favour and get the said family settlement deed registered under Registration Act, so that in the case on repayment of debt, your brother changes his mind and denies to execute the Relinquishment Deed in your favour, you can take legal action against him under the Specific Relief Act, 1963. In the case of an unsecured loan, if the lender brings a lawsuit against the willful defaulter under the Code of Civil Procedure, 1908 and receives a favourable order against the borrower/defaulter of the loan, the Lender must enforce the judgment through execution proceedings and if the borrower fails to comply with the court's decision, the court may, upon the lender's appeal, seize the borrower's assets/properties. So, considering the merits and demerits/pros and cons of the proposal of your brother and the apprehended consequences, get in touch with an Advocate for guidance and steps.
The act of giving up one’s rights and claims in a part of a property in favour of another is referred to as relinquishing rights. A right cannot be given up without compensation; this compensation may take the shape of cash, a trade in goods, or a family arrangement. The “Deed of Relinquishment,” which must be signed by all parties, witnessed by two witnesses, and registered, is another requirement for giving up ownership of immovable property in favour of a co-owner. So, you can accept the proposal of your brother following the above procedure. But the real problem lies next if, on receipt of consideration money against the transfer of 50% share in the property to you, your brother escaped the repayment of his loan. Being a defaulter of a loan, a borrower can neither purchase nor sell a property even if he is a defaulter of any unsecured loan especially when the cause of action has already arisen out of default. So, to safeguard your interest, you need to make out a deed of family settlement putting a condition that your brother should write off his debt first before the execution of the Relinquishment deed in your favour and the entire debt amount shall be remitted out of the agreed consideration money to the lender directly by you on behalf of your defaulter brother and on receipt of an NDC/NOC from the lender/Bank, the proposed Deed of Relinquishment shall be executed by him in your favour and get the said family settlement deed registered under Registration Act, so that in the case on repayment of debt, your brother changes his mind and denies to execute the Relinquishment Deed in your favour, you can take legal action against him under the Specific Relief Act, 1963. In the case of an unsecured loan, if the lender brings a lawsuit against the willful defaulter under the Code of Civil Procedure, 1908 and receives a favourable order against the borrower/defaulter of the loan, the Lender must enforce the judgment through execution proceedings and if the borrower fails to comply with the court's decision, the court may, upon the lender's appeal, seize the borrower's assets/properties. So, considering the merits and demerits/pros and cons of the proposal of your brother and the apprehended consequences, get in touch with an Advocate for guidance and steps.
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A.Dear Client,
In India, if you and your brother jointly own a property, both of you have a legal claim to the property. If your brother wants to sell his 50% share in the property to you, you can purchase his share. Your brother's unsecured loan default is a personal liability, and it should not directly impact your ownership of the property. Your 50% share should not be at stake because of his loan default. To protect your interests, it's crucial to have all transactions related to the property documented legally. You should engage a lawyer and ensure that the sale of your brother's share is properly documented and the property title is updated accordingly.
In India, if you and your brother jointly own a property, both of you have a legal claim to the property. If your brother wants to sell his 50% share in the property to you, you can purchase his share. Your brother's unsecured loan default is a personal liability, and it should not directly impact your ownership of the property. Your 50% share should not be at stake because of his loan default. To protect your interests, it's crucial to have all transactions related to the property documented legally. You should engage a lawyer and ensure that the sale of your brother's share is properly documented and the property title is updated accordingly.
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