Legal Question in Business Law in India

i took a loan of X rupees from a person and in return i mortgaged my land to him. now i am building that land and when the land is fully built i will sell it and give 80% of the money to the mortgagee and 20 % of the money i will keep. what is a safe way by which to effect this transaction so as to ensure that rights of all parties are balanced out and no party is cheated out of their share. i was thinking of an escrow account but it does not seem to fit the situation.

Asked on 8/09/09, 8:31 am

4 Answers from Attorneys

KAMAL GROVER

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Mortgaged land cannot be sold out coz you are not the owner in the eyes of law. But there is a way to get out of this situation.

Your further clarification is welcome at nominal fee at;

[email protected]

Advocate

PB. & HRY. HIGH COURT CHANDIGARH (INDIA)

With Regards

Answered on 8/09/09, 8:35 am

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Sudershan Goel India Law Offices of Sudershan Goel - Advocate

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You are entitled to raise construction and may sell the property to clear off the mortgage amount. A proper agreement may be got drafted with the help of a local lawyer. Good Luck.!

Answered on 8/09/09, 9:35 am

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RAJIV GUPTA (Cell: +91 9811284735) [email protected]

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in this situation, you need to enter a collaboration agreement instead of mortgaging your property with the money lender. you can incorporate all the terms and condition of the transaction and get the same registered by the sub registerar. as suggested by Mr. Grover, you would not be able to sell a mortgaged land to a third party unless the mortgage is cleared by paying the amount and no purchaser would pay you 100% of the sale consideration in advance.

Answered on 8/09/09, 12:19 pm

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