How Can I Ensure Our Apartment's Title is Safe After Settling My Mother-in-Law's Loan?

Hello Counselors,

My mother-in-law has taken out a loan from an individual against an apartment that my wife and I had bought for her. The apartment is in my wife's name. The title deed of the apartment was pledged against the loan. This was done without our knowledge. We have just discovered a legal document of the loan which lists our names as guarantors in case my mother-in-law cannot repay for whatever the cause.

Seeking Reassurance and Legal Advice

I want to settle the debt, but I need some reassurance that the lender will not be able to make any further demands of my wife or me after I make the payment and will return the title deed to the apartment. Can you please advise with a text template that we can ask the lender to sign and will be viewed as a valid legal document?

Any other relevant advice would be very appreciated. Thank you in advance.

This is a serious matter, and you should immediately get in touch with a lawyer. Although I do not have exposure to Singapore laws, I understand that the legal systems in all civilized democratic countries are similar. It sounds strange that your mother-in-law can get a loan by depositing the title deed of a flat that is not legally in her name. Thus, the legal document appears to have no legal authority. Moreover, you have been named as guarantors without your knowledge, which amounts to misrepresentation of facts.

Either the document was made in good faith as an acknowledgment of debt and not for legal recovery, or there may be some malafide motives behind it. First, you can discuss the matter with the lender. If his intentions are not malafide, you can settle the matter with him straight away and save the money required to be paid to the lawyer and other legal expenses.

Do revert back in case you have further queries.

Warm regards,

I sincerely appreciate your response. The matter in question is happening in Kolkata, West Bengal, India. I am not sure how to handle it when I reside overseas. Therefore, I was looking for some insights on how best to go about finding a resolution that is final and safe. The lender is not an institution but an individual money lender.

Thank you and Warm Regards