Questions & Answers
The possibility to foreclose the unmortgaged property of the deceased by the bank
My father was the director of an FZE company in Jebel Ali. He was the sole director and signatory.
To grow the business, he had taken a working capital loan from an Indian bank in Dubai, unfortunately, he passed away a few months back, and overnight, the business had stopped as he was the sole owner/operator of the business.
Debtors stopped paying and hence there was a liability with the Indian bank. He had a house in Dubai in his name which was never mortgaged with any bank and hence we were able to get an inheritance certificate from the court and get the ownership transferred to our name.
I want to know if there is any risk of legal attachment towards the house from the lending bank as they are starting their legal recourse to liquidate the mortgaged property with the bank.
Once again, the house was never mortgaged with any bank and we have the new title deed for the house with our names on it.
Please advise!
Dear questioner,
As per your query, as there is still liability pending on behalf of your father, so the bank has the right for attachment of the property which was in your father's name, though it has been transferred to the legal heirs.
Kindly contact us via phone or email for further assistance.
