• Buying property from a deceased person

I am buying an apartment whose one of the owners is deceased. My local lawyer (who is an acquaintance of the seller) created a 'search report' that reports the name of the descendants (sons and daughters of the deceased), and the fact that the property is free of any liability and other pending payments. We also have a new mutation document that shows the name of the new owners -- the names of the descendants.

While asking for the succession certificate or legal hire certificate, our lawyer told us that it is not needed in this case -- the information in the 'search certificate' should be enough. 

While our lawyer sound knowledgeable, I would like to make sure that we are not missing any parts and getting into trouble later. What would be the correct procedure for buying apartment whos owner has passed away?
Asked 3 years ago in Property Law
Religion: Hindu

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16 Answers

With due respects to your lawyer, a mere 'search report' is not suffice. A thorough and proper investigation has to be done to ascertain all the legal heirs of the dead person in order to avoid any litigation in future. If it cannot be done, better call off the deal.

Swaminathan Neelakantan
Advocate, Coimbatore
2972 Answers
20 Consultations

Succession certificate is for movable debts and securities 

 

legal heir certificate is not immovable properties 

 

since owner died intestate ask legal heirs to apply for and obtain letters of administration from high court or district court having jurisdiction 

Ajay Sethi
Advocate, Mumbai
97814 Answers
7927 Consultations

- As per law , after the death of the said owner , the property would be devolved upon all his legal heirs equally i.e. his wife and children.

- If there is no  legal heirs certificate or Letter of administration , then this property may be claimed by any of the legal heirs if any . 

Mohammed Shahzad
Advocate, Delhi
14889 Answers
226 Consultations

I'm afraid but your lawyer's advice is grossly incorrect 

A search certificate is no substitution for a legal heir certificate or a letter of administration issued by the court 

You would be walking on a slippery slope if you were to rely on the search certificate and proceed with the transaction 

In future you may face trouble when you go to sell the flat

Specially when the buyer is financed by a bank 

The bank would obviously require the heirship certificate and in absence of the same the bank would not sanction the loan of your buyer. Thus you would get stuck and your buyers profile would get restricted who would agree to buy the property on as is where is basis, however at a discounted sale price 

Thus you would be losing on potential buyers and also the property would fetch you lesser price 

Even if the buyer is not financed by  a bank, the buyer himself would require an heirship certificate as part of his due diligence 

I'm surprised that lawyers are giving erroneous advice and that too with so much confidence 

Yusuf Rampurawala
Advocate, Mumbai
7781 Answers
79 Consultations

A search report will not reveal the entire names of the legal heirs or the successors of the deceased property owner. 

It is advisable that you insist the seller to produce the legal heir ship certificate or the list of successors issued by a court in respect of the successors in interest to succeed to the estates of the deceased property owner in order to avoid litigation in future that may be instituted by any missing legal heir/successor at a later stage in future. 

Do not take a risk because it is incorrect to say that  search report will reveal the list of legal heirs of the deceased. 

T Kalaiselvan
Advocate, Vellore
88014 Answers
2370 Consultations

Dear Client,

It is a mandate to have succession certificate when the buyer bought the immovable property from the legal heirs of the that  property.

Thank you.

Anik Miu
Advocate, Bangalore
10479 Answers
121 Consultations

Check all the legal heirs of the said property. Whether its in litigation or not. Only if all legal heris are known and their noc is with you then only go for the same. That's why succession certificate is necessary when there is no will

Prashant Nayak
Advocate, Mumbai
33092 Answers
215 Consultations

Hi, All the legal heirs of the deceased must be party to the Sale Deed. Succession Certificate will not be required for Immovable property. It is required only in respect of movable property.

Pradeep Bharathipura
Advocate, Bangalore
5617 Answers
338 Consultations

1. Again grossly incorrect. Ridiculous it is!

2. Ideally it has to be simultaneously with registration of sale deed and Handover of vacant possession and original title documents. What's wrong with your lawyer?!!!

Yusuf Rampurawala
Advocate, Mumbai
7781 Answers
79 Consultations

1. A fraud can happen in any manner even if they have a proper legal heir ship certificate issued by authorised authority.

If this has been provided in the format of a notarised affidavit in the name of family tree or genealogy certificate then you can proceed but as a precautionary measure you can obtain an indemnity bond from both the legal heirs that that shall be liable to solve the crisis or take care of any litigation that may arise in future in this regard if this certificate is found to be false.

 

2.  No doubt it is common, however you may pay the sale consideration amount by a DD or cheque in that case so that you will be very safe and secured about the payment.  

T Kalaiselvan
Advocate, Vellore
88014 Answers
2370 Consultations

You can apply for letters of administration from high court or district court 

 

Take second opinion from another local lawyer 

 

Sale consideration is to be paid at time of registration by demand draft 

Ajay Sethi
Advocate, Mumbai
97814 Answers
7927 Consultations

You say that the declaration document is on a stamp paper with a text saying that it was before a first class magistrate, but signed and stamped by your lawyer. It should be an affidavit signed before and attested by a notary public, instead. Even then, such a document is not a conclusive proof of succession of the deceased person. Payment of the sale consideration should take place almost close to the time of registration. As you are an NRI, it is better to be doubly cautious.

Swaminathan Neelakantan
Advocate, Coimbatore
2972 Answers
20 Consultations

Dear Client,

a)  It is necessary to have succession certificate but you can also go with legal heir certificate. A succession certificate and legal heir certificate is not same. A succession certificate can be issued in the district court in whose jurisdiction the deceased person used to live. Instead of succession certificate you can also go for legal hire certificate you can approach to district tehsildar office with death certificate. 

b) It is necessary to pay full money consideration at the time of execution of sale deed. 

Thank You.

Anik Miu
Advocate, Bangalore
10479 Answers
121 Consultations

1. No , unless that documents issued by the court of law or a competent authority. 

2. No, it is not advised . 

Mohammed Shahzad
Advocate, Delhi
14889 Answers
226 Consultations

Dear Sir,

My answers are as follows:

 

1) Is this correct? Can such a document be used and trusted?

Ans: Normally, such procedure being followed in Karnataka also but it is better such legal heir certificate is obtained from revenue authorities or equivalent authorities or succession certificate under Section 372 of Indian Succession Act.

 

2) Also, the lawyer said that we have to transfer all our money **before** the registration (on the same day, but before performing registration). Is this something common to do?

Ans: Yes, those online transactions numbers are DD/Bank Draft numbers and date etc., to be mentioned in the sale deed and all the siblings must sign the sale deed or one of the sibling must take power of attorney from other siblings.

Kishan Dutt Kalaskar
Advocate, Bangalore
6193 Answers
493 Consultations

1. Yes

2. Depending on the agreement

Prashant Nayak
Advocate, Mumbai
33092 Answers
215 Consultations

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