Hi Team, I had applied for loan in one bank however bank is not ready to provide me loan on one Apartment, i have more than 750 CIBIL score. I am buying 1BHK apartment from my neighbour. now i am staying on rent. My Neighbour has purchased that apartment in auction. I had applied for loan and did registration for house after receiving confirmation from bank. Now the person whom i am buying that apartment has taken that apartment from one finance company in Auction. Now bank is not proving me loan stating that house registration has done in 4th January 2019 between finance company and my neighbour and collector notice that finance company has provided has date of 9th Jan 2019. According to bank finance company must have DM to notice to sell the apartment. According to finance company, customer was not paying the EMI's and that was declared NPA by finance company, despite sending reminder and notice customer failed to pay amount hence they sold the apartment after sending out notice to the customer, and customer was ready/agreed to sell the apartment. Bank provided approval and asked to me do registration on that apartment, they did not ask to submit other documents. I have provided all the required documents to the bank for ex. Inventory and Panchnama , Auction notice, DM notice. Finance company has provided letter in clarification which was raised by bank that they have mentioned 2017 in registration bymistake and has given in written with stamp and sign. We have provided all the required documents to the bank. I had received Sanction letter and later on received Loan number. Title search has not done yet. What could be the option and ways to get the loan on the same apartment as i have done registration on that apartment? Date mentioned in agreement between my neighbour and finance company is 2017(DM notice received on 2017) however that was their mistake. DM notice received on 9th Jan 2019. Registration done on 4th January 2019 between My neighbour and finance company. Now i want to buy that apartment i have done registration recently and stamp duty. I did registration for that apartment after receiving confirmation from bank, we had submitted all the chain agreements and everything to bank. If i do registration on another apartment i will have to bear huge amount. I also had received email that loan is being disbursed after one hour received email your loan is on hold. Kindly suggest.
Since neighbour had purchase the property under auction and no appeal has been filed by defaulter against said auction sale is confirmed
it is true that DM notice is required to sell the property in auction
you can approach another bank for housing loan
1. The "Sale Certificate" issued under the Bank Auction proceedings is legally Final & Conclusive and now cannot be challenged, irrespective of any inadvertently notice date and transaction date.
2. AFTER said Sale Certificate (under SARFESIA Act), the sale certificate become irrevocable & absolutely safe for ALL futuristic purpose of Sale /Gift/ Lease /Mortgage /Donate /Whatever ....
3. Bank is either confused or creating hurdles. Inquire with other bank.
Not able to understand your query
If the document between you and your neighbour is registered, it would mean that full payment is received by neighbor from your lender bank and that is why he (being the purchaser) agreed to do registration in your favour
Then how come loan disbursal is pending at your lender bank side?
Also DM notice is not even required to sell
DM notice is for helping the secured creditor take possession of the secured asset from the mortgagor
Need more clarification on your query
Dear Team, Thank you so much for your response. I had applied for loan in the month of October 2019 where i had submitted all the required documents to the bank including PAN card Aadhar card, Salary slip, bank statement, passport size photo, my rent agreement etc. Bank representative asked me if i have finalized the house/property/apartment, i said yes i have finalized the apartment and informed him price/rate of apartment, based on my eligibility i received sanction letter of entire amount of apartment as market value of that apartment was high. Next step that i did- bank asked me to submit all the documents of apartment which i am buying including chain agreements and my rent agreement as i live on rent etc. also bank representative asked to me to show all the original documents, we shown the original documents and submitted all the xerox copies to bank. Bank representative had visited the apartment (which i am buying) to check and measure the area in Sq, he took confirmation from society as part of his investigation. Later on, bank gave me confirmation and asked to me to do registration for the same apartment first, i did registration on that apartment, paid stamp duty amount as well. i submitted my all the documents to the bank-copy of registration between my neighbour and me. I received one email from bank and one call from bank representative stating that we have checked and verified all your details your loan will disbursed in next 7 days. Bank asked me to pay some stamp duty amount on given link which i received on my email, i paid as per instruction. later on bank asked to me submit DM notice of 2017 which was mentioned in agreement between my neighbour and finance company. DM noticed was actually received on 9th Jan 2019. bymistake in agreement iwas mentioned 2017. Agreement btwn neighbour and finance co. done on 4th Jan 2019. Now bank said due to this issue we can not provide you loan. finance company is ready to give NOC.
In agreement it was mentioned that DM notice was issued in 2017
on verification of original documents bank finds DM notice issued in 2019 after sale of property hence loan has been declined
- As per earlier judgement of Supreme Court, the procedure under Section 14 of the Sarfesai Act for getting possession of secured assets is administrative proceeding, and the rights of lessee of mortgaged properties will be decided by the DM/CMM.
- Hence, DM notice is required to sell the property in auction.
- You should approach the office of the DM for getting the said notice.
If the bank which have provided you sanction letter is refusing to disburse the loan then either you can make complaint to banking ombudsman that they should have refused to the loan before registration of property or you should apply for loan with another bank.
The banks have full rights to withhold the loan even if it is sanctioned due to any discrepancy they found even at the time of disbursing the home loan.
Therefore get the dates confirmed as sought by the bank and comply with the requirement that has been mandated by bank in order to get the sanction loan disbursed to you.
The mistake by the previous seller cannot be claimed as an excuse hence get the mistake rectified and approach bank once again for loan.
DM notice is required to sell the property in auction The first step is always to understand why your housing loan application was turned down and correct the issue.
This is a serious technical flaw which may become fatal if goes unnoticed by the bank authorities at this stage itself.
You may get the issue clarified in an authentic manner to satisfy the bank that the pointed out issue is just a human error which has since been rectified.
Wait fort the bank to disburse the sanctioned loan, if not you may better skip this bank and aproach some other bank who is willing to grant loan.
it is your mistake you mentioned 2017 instead of 2019.Your credit report does not show whether an application is approved or declined. So, being declined has no affect on credit scores. you can approach other bank for loan.
I don't think dm notice is not required you can file writ petition in hc
Dear Team, I have some questions. Am i eligible to buy the flat as the Dm notice received after 5 days. If yes then where it has been written. I wanted to show to the bank. Again mentioning short summery. For ex. 'A' could not make payment. Finance company sent written letter to the customer where customer failed to make payment. Flat was declared NPA. For auction finance company had given advertisement in two newspaper. Person B had purchased it in the month of Jan 2019. Dm notice has date of 9th Jan. B person has done registration on 5th Jan. Now i am buying from person B. Person A has no objection and ready to give NOC or indemnity stating he has no obligation or objection. Will i be facing the issue in future if i buy house? Where it has been written that Sale certificate issued by bank is legal and final as mentioned by Advocate Hemant Agarwal.? I wanted show bank. Regards, Prashik A.
Rules have been framed by the Central Government in exercise of the powers conferred on it by sub-section (1) and clause (b) of sub-section (2) of Section 38 read with sub-sections (4), (10) and (12) of Section 13 of the SARFAESI Act.
2) According to sub-rule (6), on confirmation of sale by the secured creditor and if the terms of payment have been complied with, the authorised officer exercising power of sale shall issue a certificate of sale of the immoveable property in favour of the purchaser in the form given in Appendix V to the 2002 Rules.
3) once sale certificate is registered auction purchaser has clear and marketable title to property
The sale certificate issued by bank after e-auction of the property is not the final, the bank has to execute the registered sale deed in favor of the buyer after taking physical possession of the property with the help of DM.
Once the bank has taken physical possession of the property then it will auction the property.
It will then issue a sale certificate and execute a registered sale deed in favor of the highest bidder, after which all the original papers and other relevant documents pertaining to the property shall be handed over to the buyer including physical possession of the property.
This should happen in the sequence as mentioned then the buyer shall have the clear and marketable title to the property.
The situation what you have mentioned seems top be ambiguous hence obtain a legal opinion from a local lawyer before taking any hasty decision on this.
If sale certificate is issued in your favour you need to register it and there will be no issues