Legal Question in Banking Law in India

Re: surfasei act 2002

At the time when property was sold to you, you ought to have perused and procured the title deed of the property from the bank. You can still approach the bank and ask them for the title deeds, since the bank would not have had taken the property in mortgage, without verifying and retaining the copies of title deeds from the mortgagor.

Now, when a property is sold by bank under securitization act, it takes effect, as if the original owner himself sells his property. So all right title and interest that original owner possesses at the time of transfer, that much right title and interest only will be passed on to you, and nothing more.

So when bank is transfering property under securtiization act, what is required to be checked is that the person who mortaged the property had absolute title to mortage the same.

So if you had purchased the property with closed eye, without perusing the title deed of property, solely relying upon the bank certifcate, then you might have to suffer, incase transaction is challenged to be bogus in future.

However that does not mean that your investment is at perils, in case any future litigation arises as regards the transfer of property, then you can claim to be bonafide purchaser, and escape from any infirmities and illegalities committed at other end.

However, if you want to mortgage or sell the property, then undoubtly you will require all previous title deeds of the property. Unless you have them, you can enjoy the property, but may not find it convinient to sell or mortage.

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Re: surfasei act 2002

You have got every right on this property as you are a bonafide purchaser.

Re: surfasei act 2002

A bonafide puchaser has every right on the property.

Re: surfasei act 2002

you are a bonafide purchaser and thus have every right as purchaser.

Re: surfasei act 2002

I hope that you are proposing to mortgage the property purchased from a Bank which sold it to you under the SARFAESI Act. It conveyed only what its mortgagor had in the property. Before purchasing the property you ought to have checked up with the Bank as to what are the title deeds they were possessed of and which they could deliver to you on your purchase. If they have not delivered what are called the parent documents, you have alone to blame yourself. You can approach the same bank which has sold you the property for extending the loan. If they do not oblige, you have only to convince your Bank that the seller bank has not delivered any title deeds and that the lending Bank may refer to the seller Bank for any details regarding the property.