Jayaraman S (Manager) 12 May 2010

Court Property

I came across an property deal, briefly saying the area of the property is nearly 2 grounds with the
costing of 1 crore. But the document's are in the court now for an auction. More over i received an update
from my mediator that, we need to pay the entire amount through DD after the bid is confirmed, so that
the sales certificate from the court will be issued to the buyer.
i have a following questions in my mind

1) can we buy a property which is already in court
2) is it more safe for our money to buy a court property, since we are paying the DD to the court.
3) is there is any chance of legal disptue may arise from the previous owner.

if any one of you would explain more about the consequences of this sale will be much appericiated.

Regards,

Jay

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6 Replies

adv. rajeev ( rajoo ) (practicing advocate) 12 May 2010

Only after going thru., the papers it can be advised. Even after purchase of the property obstructor may file an application. So before purchaing the property go thru., the court papers.

bhagwat patil (Property due diligence 9422773303) 12 May 2010

1...You can bid the auction. not buy directly. 2... It is not safe at all as you think, after your DD is recieved by court tha owner may appeal for the price of the property.you purchase deal will be stayed . your amount by the may be transfered to hte decree holdler. It will take years together to recover yor money through court. 3... ther are100% chance for legal dispute if u get the property in cheaper rate.

Jayaraman S (Manager) 12 May 2010

Hi Patil

thanks for your time and the answers,

1) actually we are going to be one of the bidder and through auction only the rate amount will be finalized. As per my mediator, we've to pay the 10% to participate the bid and after a week we've to pay another 15% DD. If we won the bid it'll be intimated to us and have to pay the balance amount with in 15 or 30 days.

2) As per my mediator, there is no way of relation to the land owner and the debt is more than his property and the decision of court is final with regards to the bid to amount.

3) As rajeev said, we'll get the papers before the auction to verify with the lawyers. in that case, am i be in the safer side.

your valuable comments are appericiated.

Regards,

Jay

bhagwat patil (Property due diligence 9422773303) 13 May 2010

There must be a decree. an order of the court to sale the property and recover the amount. the certified debter will be also there . He will definately raise the objection for price. pl. clear the meaning of court"s property.