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Sreejith CR   06 August 2018

Can i get home loan against my salary certificate if the land on which the house is intended to be built is disputed in court

I am a salaried personal and want to apply for home loan using my salary certificate. I want to know what will the bank say if the land where we want to build housr is disputed on court?
My father owns some land and in my home town where we intent to build the house. The issue is my father has got Aadharam document for all the properties in his name but dont have pattayam for any of the property. And his sister is threatening us saying dhe will drag us to court since you don't have pattayam and her and my father has equal ownership on all properties. We are confident that we are not gonna lose properties to her but the issue is if she files a case on court and since all the land will be disputed on court, will bank refuse the home loan,?


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 19 Replies

R.Ramachandran (Advocate)     07 August 2018

There are lot of issues involved.

However, it is only the Bank concerned which will be in a better position to say whether they are willing to advance the loan to you or not.  Better get in touch with the Banks.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     07 August 2018

Whenever anybody approaches a Bank for Housing Loan, the documents (copies) relating to the property need to be shown to the Bank. Banks refer the matter to theri Panel Advocate for Legal Scruity of these reports and for confirmation that the said documents are in fact in the name of the person named therein.

 

In your case, you are informing on one hand that the land is disputed and in the second para of your query, you are noting that as of now there is no case and your aunt is likely to file a case

 

Basically, it appears you do not have any title deeds in the name of your father, in which cases Banks may not be coming forward to finance for housing loan. Salary certificate is not a basic qualification for taking Housing Loan. It is only a source which you can show that you are capable of repaying the loan. The basic document for housing loan is a title deed in your name or a document which on effecting sale shall be registered in your name to the satisfaction of the Bank.

Sreejith CR   07 August 2018

Thanks for the reply. Just wanted to know this, we have the sale deed in my fathers name but no title deeds. We have applied for the same. In this scenario if my father's sister go to court claiming ownership of the properties, this claim won't stand right?

Sreejith CR   07 August 2018

Thanks for the reply. You are correct and my father doesn't have a title deed in his name(pattayam) but he does have sale deed (aadharam) for the properties. Is not that enough for the banks?

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     07 August 2018

On one hand you are talling that there is a sale deed in your father's name and in your original query you are mentioning that your father has no Pattayam document. Was it an ancestral property? If it is an ancestral property and there was no proper Registered Settlement Deed, it is open for dispute. Again now you are disclosing that your father has a sale deed but does not have title deed. If your father has a sale deed, are you informing that the land is his self acquired property? In which case, how your Aunt can contest it?

 

Please give facts properly. Further, based on your confusing disclosure of facts, it is not possible to give any clarification.

Sreejith CR   07 August 2018

Sorry for the confusion. I am not sure about the English words for these documents. Olease let me clarify. My father has Aadharam. And he does not have pattayam. Yes its an ancestral property. Given to my father by his grandfather when my father's father had passed away. We verified the aadharam in our village office and it is valid. Based on this aadharam we have applied for the pattayam in my father's name. Village officer has approved the same and sent it to the concerning authority. Hope this clarifies the confusion.

Sreejith CR   07 August 2018

Sorry for the confusion. I am not sure about the English words for these documents. Olease let me clarify. My father has Aadharam. And he does not have pattayam. Yes its an ancestral property. Given to my father by his grandfather when my father's father had passed away. We verified the aadharam in our village office and it is valid. Based on this aadharam we have applied for the pattayam in my father's name. Village officer has approved the same and sent it to the concerning authority. Hope this clarifies the confusion.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     07 August 2018

Okay now matter is clear. Apparently, your Grand Father died intestate ie. without writing a Will. In the absence of Registered Settlement Deed among the family members, your Aunt can litigate the matter and file a case in Court for proper settlement. In the legal scruitiny these issues shall come out and once the Lawyer discovers that the property is ancestral, heshall ask for further documents.

 

Sorry to say, you are unlikely to get Bank Loan based on this property.

Sreejith CR   07 August 2018

One thi3i would like to add is that the properties were never in the name of my grandfather. It was in the name of my father's grandfather. And when my grandfather died, my father's grandfather transferred the property directly to my father. In this case is not my father the real owner?

Sreejith CR   07 August 2018

But you are right about there not being a settlement deed between my father and aunt

R.Ramachandran (Advocate)     07 August 2018

You cannot confuse more than this!

If the property is (was) in the name of your father's grand father, and when your father's grand father was alive when your grandfather expired, being the owner of the property, your father's grandfather has every right to do whatever that wants to do with the property.  In that right, if he had given the property (GIFTED by Registered Document) to your father, that is perfectly legal and OK.  Nobody (including your Aunt) can object or question that or lay any claim over the property. 

What is required to be clarified by you is whether your father's grandfather gave the property to your father through REGISTERED GIFT DEED or not.  IF YES, then your father has perfect title to the property.  IF NOT, your father cannot claim exclusive ownership of the same.  

Sreejith CR   07 August 2018

Whatever you have stated above is correct. My father's grandfather has gifted the property to my father through registered gift deed. This document has been verifiex by village officer and based on this only we have applied for pattayam for all properties. But in this scenario if my aunt files a petition on court claiming these properties, even if the claims wont stand in court, will a bank reject our home loan application stating that the property is in dispute on court. I really appreciate all your answers. Thanks for bearing with me.

Sreejith CR   07 August 2018

Whatever you have stated above is correct. My father's grandfather has gifted the property to my father through registered gift deed. This document has been verifiex by village officer and based on this only we have applied for pattayam for all properties. But in this scenario if my aunt files a petition on court claiming these properties, even if the claims wont stand in court, will a bank reject our home loan application stating that the property is in dispute on court. I really appreciate all your answers. Thanks for bearing with me.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     07 August 2018

Property is not your father's self acquired property. Therefore the property has to devolve to all legal heirs, in the absence of proper will by his ancestor.

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