You can purchase the property 

2) insist on bank NOC before you pay full consideration 

3) bank would release the property subject to loan being repaid out of sale proceeds 

See you need NOC from the bank where the property is mortgaged and a release deed from bank. After noc and release you can purchase.

See builders clear loan for individual flat and bank releases same.

1. It appears the land on which the building is to be built upon is mortgaged and not the flat which you are going to purchase.

2. This is quite common when the builder secures money for the purpose of making constructions.

3. So there is no illegality in purchasing the proposed fat only because the land was mortgaged.

4. However do note that the builder has got enough permission from Bank to enter into sale agreement with prospective buyers to sell his flats.

1) Need to take NOC from hypothecated bank certificate at the time of registration of flat.

Dear Sir,

It is 20% risk to purchase such property. It all depends upon the profile of the builder he has to clear all the loans he has raised and get mortgaged released before a valid sale deed executed in your favor. If the builder able to mobalise such funds then you will be in safer zone.

Builder has to procure a NOC from the Bank, with respect to the flat that he is allotting to you. 

Only once he obtains the above NOC, whereby the bank releases this particular flat from its attachment, go ahead and get it allotted in your name. 

Yes. You can buy with Banker knowledge. 

In order to buy a mortgaged property, you will have to close the loan that is running. There are three different ways to close the loan. One is by using your own funds to pay off the outstanding balance on the loan and adjust the same on the sale price. This is possible only when you have funds and when the loan amount is not big.

Another way is to take a loan from the same bank and asking the bank to close the loan on the property using this loan. In both these cases, transfer of property in your name is easy and can be done quickly.

The third way is to get a loan from another bank and closing the loan on the property.  Here, things get a bit complicated. You need to apply for a loan, make a down-payment, the loan amount needs to get sanctioned and then the bank where you took the loan will ask you to get a No Objection Certificate from the bank where the owner of the property has the loan.

Dear client, 

For any default by builder bank will proceed against the property. First let property clear from loan than make paymeny and registry. 

1. The existing mortgage /loan can be transferred to you by the Bank, at the discretion of the Bank, by mutual application by you and the builder. Beware of other financial frauds and multiple loans on same property by builders. Get a Title-Search done thru a experienced advocate, for the property in question.

Keep Smiling .... Hemant Agarwal

Don't go by the words of builder.

First you may have to obtain NOC from bank.

Builder may make tall promise about obtaining loan from major banks but practically it may not be possible with the given information about you hence not reliable.

You may obtain a proper legal opinion before venturing into the purchase.

1. A property under mortgage cannot be sold except with the consent of the mortgagee as there is a prior charge created in favour of mortgagee. 

2. Unless the loan of bank is repaid it will not allow the sale.

You will get the NOC from bank then you can register it. Kindly check whether the title is clear from sub registrar office. A single Property is also sold Registered to multiple buyers. Verify the same