Sir I purchsed flat on bank loan one and half years back. EMI is running now. As the property is under the bank control now,I feel, bank as a kind of protector/defender against any possible legal issues if any arises. I would like to clear total bank loan now. Is it safe to clear the loan sir. Please guide me how can I be sure that there wont be any issues coming in the future for the property which I legitimately purchased by taking loan from SBI. Thanks, surya
Dear Sir,
The property is hypotheticated to bank and if you repay the loan, the same property will come to your ownership fully. The bank will issue no objection certificate or any other documents to clear the loan stands repaid and the property belongs to you.
Obtain legal opinion for the property from an Advocate, to find out whether the title to the property is clear or not.
You can repay the balance bank loan
2) bank would deliver original documents of title
3) bank must have done file diligence while sanctioning loan
4) take possession of flat after OC is received by builder from muncipal corporation
Hi
There would be no problem in future regarding the bank. This is the procedure for loan, a normal process.
Yes you can clear out the complete loan
1. FIRSTLY it is unwise to think that "Bank as a kind of protector/defender against any possible legal issues if any arises". Bank has simply financed the property and in the event of any dispute relating to Title or claim on property by anybody, you alone would be liable and also liable to repay the residual loan EMI's, without any reference to role of the Bank.
2. Ensure that you have checked the Chain of Agreements (IF property is resold earlier), and there is no legal heir claim or any govt. claim on the property. These are the only things that give trouble in future.
3. You are advised to clean all EMI and take possession of your original agreements from the Bank. AS it is, you will not be able to keep the property under loan for life long thinking that Bank Loan protects legal issues.
1. The bank is never a protector of your property and to save this the primary duly lies upon you and bank is nowhere near to this obligation.
2. Now if you have enough money then you can foreclose tge loan which may entail penalty depending upon the terms of the loan agreement.
3. So act accordingly.
1. You are free to pay the outstanding loan amount with interest in one go. Bank welcomes it as bank is interested only in recovering its money and nothing else.
2. Find out from the bank if original sale deed of property is safe in custody of bank. Take back the sale deed immediately after the loan is repaid.
See if the title of the property is clear, there is no dispute pending also all the chain documents are available and also the bank has scrutinized complete documents to provide loan there are least chances of any legal issue.
Legal issues cannot arise with respect to your property as the bank must have performed a complete due diligence before giving you loan. Therefore you should pay all the outstanding dues.
Bank is not a protector. If you defaulted in repayment, bank will auction the property to recover loan amount.
You have possesion of flat, living in it ? Sale deed register in your name, your title is perfect. Clear the loan and release the property from mortgage.
What legal issues you are expecting ?
If any one encroachment or forged the property document, you can file FIR.
Yes you are on the right track.
You can clear the loan as it will save the money you have to spent on interest rate but be sure that you get the clearance certificate on e you pay the whole loan amount.
Regards
Yes you can clear it by way of foreclosure or regular emi facility as you are doing
Yes you can repay the balance Bank Loan.
Upon clearing the balance loan the Bank would return your original documents i.e., Sale Deed.
You can take possession of flat on receiving the Occupancy Certificate by the Builder from Concerned Corporation.
The Bank might have done due diligence of the property before sanctioning the loan to you on the Flat, as such, there wont be any legal complications.
It is your decision to either fully repay the home loan or to continue the same till the end of the loan tenure.
If you have purchased the property by a registered sale deed on your name then what is your worry about the title of the property.
On discharge of loan with the bank, you can retrieve the title documents along with all other relevant property documents.
This will confirm the title of the property to you i.e., clear and marketable title on your name.
1. Yes it is safe to clear the loan and get property papers back in your custody.
2. Chances for any legal issue in future are very low because bank gives loan on property by verifying all the legal details of property but There is no surety about any future incidents or legal issues.
- Legally , the bank is not a kind of protector /defender against any possible legal issues if any arise, as the bank is only looking for the loan amount taken by the borrower in the name of housing loan after mortgaging the original sale deed , and in default of emi , the bank is having right to auction the same .
- However, if you are going to clear the total bank loan , then you must do the following for your safeguard of hard earned money.
1. At the time of repayment, ensure that you have received all the documents like sale deed ,conveyance deed etc. specially at the time of signing an acknowledgement document by the bank .
2. Further, after receiving the original documents, take NOC (no-objection certificate) that you have paid whole amount of loan .
3. Further get your CIBIL report updated from the bank , for getting another loan in future.
4. Further get the lien withdrawn.
- In case you have a weak credit score, your bank might have created a lien on your property. This means that your rights to sell the property are restricted.
- Hence, with the help of bank official , get the lien withdrawn from the office of the sub-registrar.
5. Then apply for getting an encumbrance certificate at the sub-registrar's office.
- This document is a record of all financial transaction over a property , and this document would legally certify that you officially owe the bank nothing now.
- After completing the above mentioned work , your property will be free from all legal issues , and further bank will itself approach you for availing loan.
Good luck and dont forget to rating Positively.
You may contact a lawyer in the local who practices in service law for further advises and suggestions to move on.
Ans: Ideally if suddenly you get up one day and go to the bank and get your loan cleared then you may come under the scanner. Speak to your bank manager and tell him that in the shortest possible time you wish to clear the loan. If the bank manager knows you personally only then there are chances that he / she may go the extra length to help you with this during these times.
