Q: My uncle and my father did partioned the Entire wealth like Cars , Buisness, Farm land , bunglow etc.
So the deal was my uncle can keep cars , bunglow and buisness but my father was good at farming so he kept all farms . This was mutually decided by my father and uncle along with my aunt ( Bua ) . So all the buisness and property was already in the name of my elder uncle but my father said that as we mutually have decided he'll give me my farm and other things someday. But now 7 years have passed but they are giving excuse that the land my father wants is already in debt and to transfer it on my father name we must clear the debt first . So is it true we need to clear debt before transferring the owner .
Is it true that one needs to "clear debt before transferring" real property.
No. At a minimum, that's a forbidden restraint upon alienation.
The current owner(s) of the property can transfer it at will. If there is debt tied to the land, e.g., a mortgage, that mortgage must be paid currently for the new owner to retain ownership.
Historically, many Mortgages contained "due on sale" clauses, which more recently have been met with a general disfavor by the courts. In the given scenario, even if there is such a due-on-sale provision, the new owner could do a take-out mortgage/refinancing, to clear the old debt (some due-on-sale provisions are still respected, e.g., VA 100% mortgage loans to eligible vets, etc.).
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.