If the bank seizes then you will not have any title. If you win the auction again you will get the noc and after receiving sale certificate and registration of the same you will have title

Once the property is seized or the possession is taken by bank, owner cannot execute the sale agreement in your favour. It is invalid.

You can directly negotiate with the bank and conclude the sale transaction, since the bank has taken possession of the property under the SARFASI ACT.

1. Owner (who has already mortgaged the property to Bank) CANNOT sell mortgaged property and shall constitute a criminal offence for Cheating, Breach of Trust, Fraud and so on .... Both Buyer & Seller would be liable together, for conspiracy against the Bank.

2. Sale Deed by of mortgaged property is null & void, for all futuristic legal purposes and the Sale Deed becomes liable to be impounded with penal prosecutions.

3. Sale Certificate issued by Bank consequent to due Auction Proceedings, is legally final for all purposes. The Auction Bidder MUST immediately Register the Sale Deed and take over possession to avoid all futuristic legal disputes.

4. AFTER point no. 3, the Seller or Buyer agreement can be contested only in court, without any reference to you, whatsoever.

Dear Sir,

SARFAESI Act, 2002 provides power to the bank to seize the property.  Defaulting borrowers are given notice by the bank to discharge their liabilities within a period of  60 days. If the defaulting borrower fails to comply with the notice sent by the bank then the SARFAESI Act provides for the following recourse to the bank -

• Take possession of the security for the loan;

• Sale or lease or assign the right to the security;

• Manage the same or appoint any person to manage the same.

Establishment of Asset Reconstruction Companies is also provided in the SARFAESI Act, 2002. These companies are to be regulated by the Reserve Bank of India (RBI) to acquire assets from the banks and financial institutions. The SARFAESI Act provides that the banks and financial assets shall sell the financial assets to these asset reconstruction companies. Guidelines have been issued to banks and financial institutions by RBI regarding the process to be followed for sales of financial assets to asset reconstruction companies.

See if the property is.mortgaged to bank and the account has become NPA then due to such agreement there won't be any issue. See the owner is liable if he has received any sale consideration you can purchase same from bank auction.

Owner could not sell property without bank consent 

2) sale agreement executed by bank would be void and can be set aside by court 

3)if you purchase property in auction and is registered in your name you would get clear and marketable title to property 

Party with whome, ATS is executed can file suit of specific performance in court agasint owner. Since property is auction due to default committed by owner, ATS may not enforce but compensation to party.

Date of execution is of ATS is important,if three years lapse than purchase is almost safe. Still before purchase check any third party interest as bank dose not disclose this.

Dear Sir,

It is the first charge with the bank. Better seek permission of the DRT before participating in the auction.

- As per law, an owner of a mortgaged property cannot sell the same , without the permission and consent of the morgagor /bank.

- Further, an owner can sell his mortgaged property to other person and can enter into an agreement with the buyer , if the owner/seller pays off the outstanding dues, and an NOC is issued by the bank to certify that there are no outstanding loan dues to be paid and the original documents are released.

- Since the said property ,which you wanted to purchase , came into the possession of the bank under Sarfasei Act, i.e due to non payment of the outstanding dues , and further court grant order for auction the same , hence there is no risk to purchase of the said property.

- Further, if the owner has made sale agreement before bank seizing , then this transaction will attract a criminal offence against the owner, and in that eventuality even you will have no risk, because you will have a legal document in your favour . 

Good luck and dont forget to rating Positivley.

Once the property has been seized by the bank owner cannot execute sale agreement. 

bank must issue an Indemnity Certificate to protect you from risk of future claims by the owner.

You first of all verify about the pending cases in this regard through your lawyer.

It is always advisable to obtain a proper legal opinion fro  a local lawyer before buying such disputed properties.

The bank will wash away their responsibilities once they have sold the property after which you will be in a fix trapped with legal cases.

Hence take a cautious step.

Owner cannot make sale agreement till the property is mortgaged with bank.

And even if he make the agreement then it will be considered null and void. 

So you can go ahead with purchase of property.