Handing over of Title Deeds
Someone has asked;
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"I am the
guarantor for a home loan the applicant dies home loan repaid will I get the
documents?"
Ans.: Being a
guarantor in a loan account is a liability for him and it does not give him any
rights over the assets financed by such loan. In this case, I presume that
property held as security is in the single name of the deceased borrower, and the loan is repaid. Even if, the loan is
repaid by the guarantor, it does not transfer the ownership to him. As such,
documents of the property can be handed over only to the owner of the property
or his legal heirs.
Once the borrower dies ,the guarantor steps into the shoes of the borrower.He can definitely insist on the sale of the house to liquidate the loan as the title of the house is in the Bank's name during the pendency of the loan.Having said that,if there is any shortfall after adjusting the sale proceeds of the house, the guarontor shall have toake good the loss.
ReplyDeleteWhat you say is correct, but it is only one of the situation. The other situation may be that value of the property is say Rs. 50 lakh and outstanding in loan account is say Rs. 5 lac. Not only Guarantor, you will find many people to come forward to pay bank's outstanding and asking for title deeds. I have attempted to focus on this aspect. Repayment of loan by guarantor or by anyone does not give him or her a right to claim the property. I would have enjoyed discussion more if you had mentioned your name or email ID. Thanks for the interest.
DeleteThank you.
ReplyDelete