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Manjunath (Lead engineer)     20 November 2019

Relinquish deed on a sale agreement

Hello sir,

I am planning to buy a property in Bangalore which is a house. Below is the descripttion of the title transfer of property a plot of 30*50 with a house.

1. The property was allotted by Society to person A in 1980. which he sold to Person B and C in 2006.

2. In 2007 Person B and C made a sale agreement with person D ( D is a sibling of C) for an X amount and mentioned that they received 90% of the amount specified in sale agreement for selling 50% of the property  rights. This sale agreement is a registered sale agreement and does not have any clause of how long it is valid. Also it does not say how did they receive 90% of X amount ( that is no cheque/DD number mentioned in sale agreement.) but states 90% of amount has been paid to B and C. rest 10 % will be paid at the time of sale registration.

3. Sale deed between Person B,C and D have not happened till date.

4. This property is mortgaged to the bank by all B, C and D in 2017. 90% of the loan amount is yet to be paid by borrowers to bank.

5. Now they want to sell the property but Person D ( one with sale agreement) does not want to be a party in sale deed. He says he can do relinquish deed stating he does not have any rights in the property. Person D also mentioned that since in the sale agreement there is no proof of cheque/DD/online transfer he will just write that he received money and he does not have any rights in property anymore. so B and C can execute sale deed to person F.

Is it valid to buy this property as mentioned in statement 5? what happens to mortgage ? Does B,C and D have close mortgage before relinquish deed?

Please let us know your opinion? 



Learning

 6 Replies

Isaac Gabriel (Advocate)     20 November 2019

D is not absolved of the bank loan eventhough he made rellinquishment. It is unbelievable how the bank advanced loan on a slae agreement.Whether A too signed for the loan?

Kishor Mehta (CEO)     21 November 2019

It will not be legally advisable to buy this property.

Manjunath (Lead engineer)     21 November 2019

Thanks sir, A after selling the property to B and C is not seen anywhere. Could you please advise what is the way to buy this property so that no hurdle in future?

Kishor Mehta (CEO)     21 November 2019

Future hurdles can't be forecasted, it will be prudent not to purchase the property as the ownership of the vendor is ambiguous.
1 Like

Dr J C Vashista (Advocate)     22 November 2019

Get the title of property verified before finalisation of transaction.

It is advisable to consult a local prudent lawyer for proper appreciation of facts/documents, guidance and proceeding.

Manjunath (Lead engineer)     22 November 2019

Originally posted by : Dr J C Vashista
Get the title of property verified before finalisation of transaction.

It is advisable to consult a local prudent lawyer for proper appreciation of facts/documents, guidance and proceeding.

Thank you Sir, I meet a local lawyer he mentioned there are only 2 options:- 

1. Person B,C and D has to close loan and then D  has to execute  a relinquish deed so he will loose rights of property. I can buy from B and C property.

2. All B, C and D will be part of agreement and sale deed. we will pay D what is his share, close loan and the remaining money to B and C . ( sale deed will be signed by all 3.

Is there any other options other than above 2?


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