buying 20*30 from a plot with title deed on 40*30
ChethanKARIYAPPA
(Querist) 16 March 2014
This query is : Resolved
Hi,
I am planning to buy 20*30 site for which I will not get Title deed. Bcoz current Title deed is on plot of 40*30 , As seller need title deed to sell remaining 20*30.
Banks say they need title deed to give loan.
Please let me know how to get this transaction done. So that I get loan &face no issues in future because of not having title deed.
Thanks in advance
Anirudh
(Expert) 16 March 2014
As you rightly say, the Vendor would not be in a position to give you the original title deed. However, the vendor or you can obtain a certified copy of the title deed and give it to the Bank for them to verify. The bank needs it only for the purpose of verification. On the basis of the certified copy the Bank can definitely conduct the verification to its satisfaction.
In any case, the vendor will execute and give you the Original Sale Deed for 20'x30' plot of land (duly demarcating the boundaries on the north, east, south and west)which the Bank can keep.
Except this, there is no other way. In case the bank is not agreeing, then you have to look for some other bank which is willing to give you the loan.
Rajendra K Goyal
(Expert) 16 March 2014
Well advised, agree with the advise of expert Anirudh ji.
Banks lawyer would prepare report on the basis of certified copy.
ChethanKARIYAPPA
(Querist) 16 March 2014
Thanks a lot.
Apart from getting loan,Is their any issues I will face in future with my ownership of the property. I mean, after owner sells 20*30 to me,since he hold title deed of 40*30, can he sell entire 40*30 to other party. This is what, bothering me a lot?
Any specific clauses I need to mention in sale agreement &deed?
ChethanKARIYAPPA
(Querist) 16 March 2014
Thanks a lot.
Apart from getting loan,Is their any issues I will face in future with my ownership of the property. I mean, after owner sells 20*30 to me,since he hold title deed of 40*30, can he sell entire 40*30 to other party. This is what, bothering me a lot?
Any specific clauses I need to mention in sale agreement &deed?
Anirudh
(Expert) 17 March 2014
In the sale Deed, the vendor will first recite as to how he is the absolute owner of the 40x30land (fully giving the particulars of the documents through which he became the absolute owner).
Then he will recite that out of the said plot of land, he is now selling 20x30 (clearly giving the boundaries) for the agreed consideration of Rs......
This is enough. Nothing more would be required.
Other usual terms and conditions as for any other normal conveyance deed would be good enough.
prabhakar singh
(Expert) 17 March 2014
Agree with Mr.Anirudh's advice about draft of sale deed.
However you should check about the rule of fragmentation, if any,in the state prohibiting such sales or constructions on such fragmented lands.
ChethanKARIYAPPA
(Querist) 17 March 2014
Thanks Anirudh. I was hesitant when realised i will not be getting title deed. But am now clear on this & will go ahead with the purchase.
Prabhakar, i am in Bangalore & the plot in question is within Bangalore Mahanagara Palike limits.
ChethanKARIYAPPA
(Querist) 17 March 2014
I checked with one of the financial firm, and they asked me to get an Indemnity Bond from the Seller.
Which Main Indemnfication clauses should it take care?
prabhakar singh
(Expert) 17 March 2014
Theek kaha hai ki phagun mai BABA devar lagen!
Aur BAAP lagen beta!!
T. Kalaiselvan, Advocate
(Expert) 18 March 2014
@Author: my humble request is that while posting queries in such portal like this before some experts to get their opinions at free of cost, do not ever be under the impression that the experts are obliged to answer you however you address them. A minimum courtesy of prefixing Mr. before the individual expert's name would have placed you in a good esteem and you could have got a proper answer, decide.
ChethanKARIYAPPA
(Querist) 18 March 2014
Sir, my sincere apologies if I had hurt the sentiments. But it was unintentional. More often I have encountered cases, where people usually dont like being very formal.
Nevertheless, very sorry from my side.
This is my first post, and request you all to pardon me.
T. Kalaiselvan, Advocate
(Expert) 18 March 2014
@ Mr. Chethan Kariyappa: Thanks for your immediate response but please do not feel that the contents were meant to hurt you. In reply to your query, I fully agree with the opinion and suggestion rendered by Mr. Anirudh. The vendor can execute a registered sale deed in your favor to the extent of the property being sold to you by properly demarcating the boundaries including a mention about the property retained by him out of the total extent of property. This original sale deed along with the certified copy of the parent deed to this deed will suffice the requirement for grant of loan by bank.
ChethanKARIYAPPA
(Querist) 18 March 2014
Sir,Thanks. I understand no malice intention behind your first post.
I also ve taken it sportingly.
Just to re-iterate, bank is asking Indemnity bond against said plot not being pledged .
I assume by means of this bank is getting insurance against the loan.
I have 2 questions on this:
1. What I am not able to understand - is it Seller giving or me the buyer giving this insurance?
2. If its from seller, like bank, I should also get indemnity, if seller misuses the parent 30*40 deed. Is not it?
T. Kalaiselvan, Advocate
(Expert) 20 March 2014
@ Author:You have stated that the bank is insisting an indemnity bond to confirm that the property has not been mortgaged or encumbered earlier at the time of applying for loan with the bank. But this has got nothing to with the insurance on loan. What is insurance on loan, a term unheard, at least on the borrower's side. There is nothing called as insurance on loan, there is insurance against fire , theft or damage etc., this will have to be taken at the time of grant of loan. This indemnity bond might be an essential requirement for grant of loan which you are required to comply without fail. Thus, do not get confused by clubbing too many things together.
V R SHROFF
(Expert) 23 March 2014
is seller GPA holder?? of dead owner???
why not giving u tiltle of entire plot????
