Cash credit limit
Prashant Jain
(Querist) 28 January 2014
This query is : Resolved
i want to open a cash credit account in a bank but the bank manager have demanded title deed of property. but the property i owned is on my mother`s name who has passed away and me and my brothers had sold a part of that property in the past now i lived on my part of property and i have no papers of this property except original papers of total land in my mothers name, a part of which we have sold, so what should i do to satisfy the manager in this regard. my brothers are agree to sign any type of papers
Isaac Gabriel
(Expert) 29 January 2014
Get an encumbrance certificate and submit it along with the consent of legal heirs.
Advocate. Arunagiri
(Expert) 29 January 2014
If you have the property tax book, EB card, Ration card for the proof that you are living in the property owned by your mother, I think this is sufficient, to convince the bank manager.
Sudhir Kumar, Advocate 
(Expert) 29 January 2014
the property is not divided and demarcated. You are not the owner. You need to file a suit for title.
malipeddi jaggarao
(Expert) 29 January 2014
The Bank Manager is asking the property as a security to the proposed cash credit to be sanctioned to you and as such mortgage is to be created in favour of Bank by the owners for obtaining cash credit limit.
In this case, the title of the property rests with your mother. The following steps are required to be taken before offering this property to the Bank as security (in case mortgage is proposed by the Bank):
1. Obtain death certificate of your mother.
2. Obtain legal heir certificate from the concerned revenue authorities.
3. Apply for mutation of names in the revenue records/Government records.
4. Partition deed is to be registered bifurcating the properties to all legal heirs.
5. Since you people have already sold some part of the property, a recitation has to be mentioned in the partition stating that the sale is with the consent of all legal heirs and the sale proceeds were received by all legal heirs as per their share in the property.
By all these steps you will get the title to the property of your share.
You will have to obtain encumbrance certificate for 30 years which is the evidence of passing of title.
You will have to submit all these papers to the Bank. The Bank will obtain opinion of title from their empanelled advocate. He will examine all these papers and confirm that you have a valid and markatable title.
The Bank may refer for valuation report to be obtained from their approved valuers.
Then only you can create mortgage in favour of the Bank for obtaining cash credit limit.
R.V.RAO
(Expert) 29 January 2014
i agree with sri sudhir kumar.you need to establish your title by filing a suit for title to the undivided and undemarcated property.
even if you produce your mother's death cert. and consent of all brothers and legal heirs to the property, banks's security cannot be created on the property without a valid legal title. banks do not lend money without adequate and legally valid security.
Even, if bank accepts simple deposit of title deeds as security for the CC limit, there is problem because ,in future if any legal heir may legally seek division f property and their share, the lending banks are helpless in such an eventuality.
Rajendra K Goyal
(Expert) 29 January 2014
Get the property transferred and partitioned in the name of legal heirs and get the mutation entered and proceed.
Alternately you may offer other property as collateral and owner of property can stand as guarantee of the loan.
RAJU O.F.,
(Expert) 14 February 2014
You may mortgage your share in the property, with the written consent to the bank from all other legal heirs.
