Reg: buying property

You have not specified that whether the loan is against the property in question. If it is not then, the guardian of minor can't sell the property for any other purpose except for the Benefit & welfare of children and that too by the permission of the court. If, they sell the property without courts permission then after attaining the majority the child can challenge the sale. However if they manage to get court’s permission then the sale will be valid.

Thanks for the response Anjali.

Yes the loan they have defaulted is for the house they have brought. They have not been able to pay up the loan for the last 4 months and have defaulted.

So in this case they are planning to go to court to obtain the permission/cancel the gift deed so that they can sell the property and pay up the balance loan.

Again want to be double sure latter the children cannot challenge this ? And there would not be any legal issues for me in case if I've to re-sell at a latter point in time ?

Regards,

Shankar

Yes, the donee can revoke the gift deed. Once the gift deed is revoked and the same is duly registered the children cannot challenge it. But, they are defaulters and the property in question is the same, they cannot sell this property to repay the loan, as it is the security. Bank will auction it to recover the balance amount.

This property might get you in trouble. So before you buy it be sure that all points you have raise here are sought legally.

1. Dont buy a hypothecated property unless bank gives an NOC. 

2. Since the property is held in minor's name - then in that case without court's permission the sale is voidable. 

Tread with caution !

Thanks for all the great inputs.

So are you saying that if the bank NOC is there and the court gives permission then this can be bought ?

As per Anjali's response then she says I would have trouble because they cannot sell the property and close the loan. The reasopn for them cancelling the gift deed and selling the property is to get rid of the creditors.

Also I would be intrested if there is any trouble for me in case I buy it.