Old mortgage loan shows on EC
Geo Andrews
(Querist) 02 March 2010
This query is : Resolved
I brought a property in 2003 using a bank loan from Citybank and then moved the balance transfer to ABN Amro. During these transactions I did’t have any issues then now when I’m trying to move the BT to another bank am running into few issues as below.
The bank asked for the EC right from 1986 when the actual property was allocated to the previous owner. Now that when I’m checking the EC I find the previous owner had mortgaged the property sometime in 1989, he had also taken about 13.5 lacs of loan of which I’m able to track repayment for 7.5 lacs. Then not able to track for the remaining amount. What are the legal implications for all this keeping in mind these questions.
1) I brought the property in 2003 : its been 6.5 yrs
2) I have all the original documents : ist deposited with ABN AMRO
3) No bank has approached me so far for any dues
4) EC has entry as DTD for about 5.5 lacs
Questions
1) Now that its been close to 7 yrs will the bank get back to me to make the payment
2) Since I have not been notified so far can I use the 3 yrs timeframe window ?
3) Should I go to the bank and get it clarified.
Thanks a lot for answering the questions.
A V Vishal
(Expert) 02 March 2010
The Transfer of Property Act (Act IV of 1 882) deals with Mortgage. The relevant sections are 58 to 104 of Chapter IV.
Mortgage in simple terms means transfer of the interest in the immovable property to a creditor to secure the payment of money lent. The limitation is twelve years from the date when the mortgage money becomes due (Art. A 62 of limitation Act)
B K Raghavendra Rao
(Expert) 02 March 2010
The loan dues are continuous and you cannot claim three years limitation for brushing off the repayment demand. The bank may have issued notices to the original borrower and may proceed against the property if payment is not made. It is better you approach the bank and know the status of loan repayment as it exists today. You may plan your actions accordingly.
nishad
(Expert) 02 March 2010
Please approach the bank and find out the exact position of the proceedings....I guess you should have been careful while purchasing the property by verifying the EC for atleast 30 yrs prior to the date of purchase....If the bank is within the limitation period of 12 months, then they stand a good chance since the conveyance to you is subject to the registered mortgage created in favour of the bank...do not lose heart please try finding out the real situation
