Hello, I have a flat in Thrissur for which I have an interested buyer.When they approached the bank for a loan, they asked for a non-encumbrance certificate.We initially got a 20 year one which had no problems. We were asked for a 30 year one . It turns out that the flat developer bought 30 cents from a total property of 70 cents. After this event, the original owner of the land took out loans on the remaining property. For this purpose , he submitted the original land ownership document which showed 70 cents with the recent tax receipt for payment for 40 cents. On nonpayment, the bank then gave a case on the whole 70 cents instead of the 40 cents.So, the nonencumbrance certificate now shows the flat property as an attachment to the property which has a civil case going on. How do I go about getting a document saying the flat property is not involved in the case? The residents association is disinterested. If the buyers back out, and I want to take legal measures against the party who is the reason for this, how do I go about this?Should this be against the Bank?Would filing for an RTI in this case help? Kind regards Sri
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The property may be in danger of being auctioned if the original owner didn't pay the loans as the developer has bought the land but the original land owner has took loan even on the property which was sold off vefore the loan was taken.
Therefore you have give legal notices to all the necessary parties and file a declaratory suit. When the title is clear then only you can sell the property.
Regards
You need to approach bank for in this regards and check at the time of taking loan actually who was the owner of the property at that time and how bank has approved full loan to builder on 70 cents instead of 40 cents. Or ask bank to given NOC or encumbrance free letter to you for your 30 cents apartment.
Otherwise you may complaint against bank in RBI.
Lodge complaint with Banking Ombudsman of RBI. Lodge your complaint with the Banking Ombudsman of Reserve Bank of India. You can fill up this online complaint form with details of complaint, bank's name against whom you wish to file a complaint, phone numbers, bank account details, etc.
You have to sue both of them at a time one (seller) has provided false information and other (bank) has approved that without checking.
Builder is liable to repay the loan
2) if he has failed bank can attach the property for non payment of loan
3) issue legal notice to builder to repay the loan
4) take out intervener application in pending suit
Tell the bank straight away, only 20 years available. And even 10years past record will effect loan as next 20 years encumbrance is clear.
None is responsible, bank and party.
You can get the same from collectors office even for 30 years
The Person is liable for repayment of loan raised by him.
It is your problem to establish the fact that the same is separate property.
Issue notice to the person who is defaulter, failing which you can file case.
Bank has the option to attach the property to recover its loan.
1. Find out te details of the civil case pending before the Court wherein the Bank has claimed the entire 70 cents of land as mortgaged in place of 40 cents.
2. File an intervening application in the said civil case and get your 30 cents released from the mortgage of the Bank threough Court order.
3. Thereafter your EC will be clear for 30 years.
See if the property is in litigation then in that case pending the case it cannot be cleared. Either the flat association or members join as party in suit for release of there 30 cents from the bank attachment.
See bank has here legal right to proceed as the property was given security before the bank. You can join as party and contest the suit.
Dear
The party from whom you purchase the flat is liable to provide you the NOC for flat as per indemnity clause.
You also need to issue legal notices to all the parties which Include original owner who took the loan on complete property and builder from whom you have purchased the flat.
You need to approach court for making you necessary party in the case for getting your property free from the loan taken by original owner from bank.
Since there is a litigation pending then the bank will certainly not go ahead to sanction the loan as desired or requested by the buyer.
You may have to get a certificate that this property is not involved in the litigation .
You may also have to obtain the current status of the litigation.
You cannot blame anyone for your carelessness because you should have got the things cleared while buying this.
You are liable to explain and give the complete clearance to the buyer otherwise you may not be able to sell this property.
