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Land with security bond, can be sold to 3rd party ?
08-Sep-2023 (In Property Law)
A Seller executed security bond against his land for a loan taken from a finance Person. Now the seller wants to sell his property to repay the loan. Can a buyer buy his land with security bond? , Also the financed Person filed a suit on court for not repaying his money, which is under court now. If a buyer buy the land and registered on his name, can he repay the loan amount to finance person later, to withdraw the suit. Also During registration suit is under court, buyer can gohead, whether the seller or finance person regain / take the land back after the registration.
The property is under litigation hence it is not advisable to buy the property under litigation unless the litigation is cleared by the debtor discharging his entire loan amount with interest thereon.
The creditor has already approached court of law on the basis of the property offered as collateral security therefore until the creditor is agreeing and withdraws the suit, there is a risk of the property being attached by court for the purpose of discharging the loan amount.
Show the document and relative details to a local lawyer, get his further advise before proceeding with the purchase.
The creditor has already approached court of law on the basis of the property offered as collateral security therefore until the creditor is agreeing and withdraws the suit, there is a risk of the property being attached by court for the purpose of discharging the loan amount.
Show the document and relative details to a local lawyer, get his further advise before proceeding with the purchase.
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Adv. T Kalaiselvan
Vellore | 400+ Answers
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The buyer can buy the land after clearing the loan outstanding. First clear the outstanding and ask the financier to withdraw the suit. Then the suit seeking registration can be compromised and sale deed can be executed. It is not advisable to have the sale deed registered with encumbrance and that to a suit for recovery of money is pending before the court.
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