The allotment letter coupled with the payment receipts can be deemed to an agreement; on the basis of which you may claim against the financial institution. In any event, you can only have a money claim since the financial institution will always have a first charge over the property.
Orbit residency park
Orbit Corporation defaults on 96 crore loans - The Economic Times http://www.mid-day.com/news/2013/aug/060813-top-builder-gets-notice-over-rs-96-cr-loan-default.htm Please refer to the above link. I have made an investment at one of the affected projects and have paid over 50% of the purchase price. I do not have an agreement signed as the intention has been that of an investment and a quick sale before possession. Can you please explain the legal implications of this default for ones who do not yet have agreements signed with the company - the only documentation available between the buyer and the seller is an allotment letter and the money receipts. In such a scenario, can the financial institution claim its security rights on a property for which an agreement is not signed but an allotment letter issued and payments made per the project milestones? Advice appreciated. Any other legal options available to me?
Asked 10 years ago in Property Law
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