Indemnity bond between bank and buyer/seller
Shray Narula
(Querist) 01 October 2018
This query is : Resolved
Hi, I'm buying a residential property on homeloan from registered GPA holder, I'm getting registered sale deed done for the same on my name but Bank is asking me to sign on a Indemnity bond that in case there is any dispute on the property then bank will catch the purchaser i.e. me and will not hold the seller from whom I'm buying this property. I want to know how can I make sure that if anything happen in future and bank catches me so I should be able to catch the seller to give me my money back.
Guest
(Expert) 01 October 2018
Bank would pay loan to you only, not to the seller. So, nothing wrong, if bank wants to secure its debt, as housing loan to you. It is for you to check the validity of transaction, as the same is proposed to be based on POA, not a registered sale deed.
Rather you should be thankful to the bank that they became ready to pay you loan on a POA based purchase of house.
Shray Narula
(Querist) 01 October 2018
Thank you for your reply sir. i want to ask if I can also get the same indemnity bond signed from seller in my favour that if any dispute occurs in the future then seller would pay me my money back, will it help me safeguard the deal or if there is anything else i can do ?
Guest
(Expert) 01 October 2018
You could have asked, but did not ask.
Nothing wrong, if the seller is ready to give you indemnity bond on your asking.
Raj Kumar Makkad
(Expert) 01 October 2018
You should get the documents of the property and GPA verified from a lawyer and should insert a specific term in the sale-deed to the effect that in case of any dispute qua the clear ownership of the property under sale, the seller shall be responsible for all the consequences. If registered sale-deed stands executed and registered then the sole remedy is available as told by Ld. Dhingra ji.
Dr J C Vashista
(Expert) 02 October 2018
I agree with the experts advise of Mr. PS Dhingra and Mr. Raj Kumar Makkar.
The Bank shall ensure refund of loan + interest amount mortgaging the property and collateral surety from borrower.
Vijay Raj Mahajan
(Expert) 02 October 2018
Buying an immovable property not directly from the lawful owner but through his attorney holding his power of attorney is always risky factor. All banks are well aware of frauds committed by people selling properties by POA which one can prepare by himself using forged signatures and other documents.
Why should bank take risk if you as buyer want to take. If it is genuine sale of the property let the actual owner come forward for sale deed registration in your favour rather through his power of attorney.
Bank will not ask for indemnity bond from you if there is direct sale of property by a actual owner to you.
You have to be careful with the power of attorney business being part and parcel of big scam which even the Supreme Court of India had observed and disapproved the sale of immovable property by POA.
Rest is your own decision and luck.
