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Raj   01 November 2017

Buying a property gifted by 2nd wife(1st wife not divorced)

All respected lawyers: 

There is a residential property for sale which I am interested to buy for strategic reasons. but it has complications ( or at least seems so, until one of you can clarify that)

  • Owner recieved this property as registered unconditional gift deed. 
  • Property was intitially bought in his wifes name in 2015, later gifted to him in 2017 to avail construction loan. 
  • He lives in the ame property with his wife and 2 children ( both majors) 
  • During the sitting he unveiled a fact that he had a first wife, and two children from her. ALL ALIVE and settled. 
  • He did not divorce the first wife neither can prove any seperation documented. only fact that he is seperated from her for 20+ years. 
  • He remarried again in 2 years of seperation, since then he is living with second wife.
  • IMPORTANTLY: The property is mortgaged with a financial institute ( Not a bank), and is in the verge of getting to securatization. 

With the above situation, he is willing to sell the property to clear the debt and find a smaller place to live.

Please with your experties clarify few questions that I have 

  1. Can the first wife or her children claim any share in the property, now or later during the sale proceedings? 
    1. with my research on internet, it was clear that gifted property is treated as self acquired propery, however if the first family sees any possibility to make easy money they may pitch in, thats my worry
  2. If the property goes for auction, and for the person  who buys in the auction, what risk he will have from first family.?

Over all is it safe to get into this deal, either directly or through auction,



Learning

 6 Replies

Kumar Doab (FIN)     01 November 2017

'Buyer Beware' applies to property deals.

It shall be appropriate to get proper legal opinion from a very able local senior counsel of unshakable repute and integrity specializing in revenue/property/civil/securitisation matters before signing or making payment.

This may cost some FEE but can defend long term interest and hard earned monies.

 

Kumar Doab (FIN)     01 November 2017

Probably you want to buy in auction.

Which personal law applies to borrower;say Hindu?

Your understanding that  property that is recieved by gift is self acquired, is correct.

Generically speaking; property auctioned by fall of hammer is proper.

However there might be  many issues that borrower may agitate in court that a lawyer/law firm can assess and advise after examining all property related docs/details  that are provided by lender and also that are not provided but that can be suggested/obtained by lawyer/law firm.

 

 

Siddharth Srivastava (Advocate)     01 November 2017

Get the property free after clearance of loan and go to purchase the same. Rest are your baseless apprehension.

Raj   01 November 2017

Thank you sir. I couldnt spare any risk as im investing my lifetime earnings

Kumar Doab (FIN)     01 November 2017

The FEE for legal opinion is resonable.

You may start asking layers/Law Firms empannelled with Banks.

The reasonable FEE in such matters is worth it.

Kumar Doab (FIN)     01 November 2017

You are welcome.

 

It is good to see that you are concious of hard earned money.

 


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