Legal Question in Credit and Debt Law in India
My mother had been given a land in the form of gift deed by her mother and brother. My father mortgaged the property to a bank and took a loan and my mother signed as the gaurentor. He passed away recently. After his demise, we learned that he had other debts.
1) There were 2 loans under my father's name including the above, in the same bank. The bank insists on clearing the gold loan before we can work on the land loan. However, the gold loan is much more than the worth of gold. On the other hand, the land is much more valuable than the loan amount. Is there any way we can avoid the gold loan and just take care of the land loan. My mother did not sign for the gold loan, but the bank insists on getting the Legal heir documents and clearing the gold loan. We have money constraints at this point.
2)Is the land (gift deed)legally under threat if somebody approaches court regarding the debt that my father did not clear, if my mother co-signed on the promissory notes
3) To keep he land safe as it is our only property left, is it better to transfer it as gift to a trusted relative in order to avoid legal proceedings
4) Are there good resources about gift deed properties and rights.
Thank you much!
1 Answer from Attorneys
11.01.2016
Dear Sir / Madam,
1). The net outstanding amount of principal plus interest on the gold loan amount has to be settled and cannot be avoided. Unless it can be legally proved that the gold offered to the Bank, exclusively belonged to your deceased father, the Bank will imply that it is your mother's asset. As regards the land, a Valuation Report from a Government approved valuer certifying its latest value may be obtained and submitted to the Bank.
2). Since the land has been offered as a security to the Bank for the loan, the Bank has the sole right over the title deeds of the land. Promissory notes signed by your mother have to be settled by her.
3). No, the gift will be null and void.
4). Yes, there are good resources about Gift Deed properties and rights.
Regards,
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
