Request Legal opinion on Loan against Property
A property was acquired by two brothers through Will from grand parent. The property division was not done. Can a bank extend loan to one party without consent from the other, using the original documents which has the deceased buyer name? In case of default in payment by the borrower to the bank, what happens to the document and property? What happens to the rights of the second beneficiary of the Will? more
No bank will sanction loan to one of the joint holders of any immovable property against security thereof without written consent of the other holders. However, it is better to consult with your bankers. more
Loan corresponds to name on the property and suitability of owner in his earnings or repayment capacities.No bank financial institution give loan to sell property more
The mutation of property in the names seems not have taken place.
Unless mutation takes place the person cannot apply loan from bank as the property is not in his name.
Now the question of share in property, in case of dispute probation of will has to takeplace , ehere the court will decide the share among beneficiaries.
Thus unless the above issues are sorted out any action upon the will may lead to disputes. more
sir, Generally loan cannot be granted without the consent of the other. If so and there is a default, the financial institution can take action against the defaulter. The property for half the share of the borrower alone can be taken for the default. Which half can be decided by the parties or the court. more