• GHMC mortgaged flat


I am thinking of buying a flat in a gated community currently under construction. The flat I like seems to have been mortgaged to GHMC. The builder is asking me to pay 40% of the cost within 150 days of booking, and remaining 60% within 15 days of release of mortgage by GHMC. I had a few questions about this:

1) I understand that the mortgage is so that GHMC can enforce the regulations. So in case there is a problem, what would happen to the 40% I pay in 150 days?

2) Will I be able to take a loan for such a flat?

3) Is the mortgage released when the flat/block is complete or when the whole community is complete?

4) Overall is it advisable to buy such a flat? Any other risk that I'm not seeing?

Thanks in advance!
Asked 19 days ago in Property Law
Religion: Hindu

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6 Answers

It depends upon your confidence on the builder.

Mortgage will be released after the completion of the project without deviations or permissible deviations

You will not get any loan

You have to seek assurance from the builder about the 40% amount in case mortgage is not released.

You have to enter into proper agreement with the builder with all the safeguards.

Sricharan Telaprolu
Advocate, Hyderabad
169 Answers
87 Consultations

4.9 on 5.0

To avoid future contingency it is better to avoid purchasing mortgaged property.

Devajyoti Barman
Advocate, Kolkata
22659 Answers
476 Consultations

5.0 on 5.0

Once payment is made by you GHMC would release payment 


2) prior co sent is necessary to sell the fist of GHMC 


3) you can take loan subject to builder and GC consent 


4) avoid purchasing the flat 

Ajay Sethi
Advocate, Mumbai
94240 Answers
7432 Consultations

5.0 on 5.0

1. Technically you shouldn't buy those flats unless release by GHMC/HMDA as those are under mortgage. If builder violates the approved plan, GHMC has rights to take over those mortgaged flats and sell them. Builder can make agreement, but can't register the apartment under your name unless released from GHMC.

2.  Bank don't offer loan, as technically Builder doesn't own it until released by GHMC.

3. The mortgage will last till the builder obtains OC for the entire flats/apartments

4. your builder have to show certain documents like original sale deed,possession certificate\'mou agreement with owner, in some cases if the builder didn\'t got absolute right but only you with owner the owner will resolve some flats to his own. We have to verify them, after verifying
all these documents than you have to come into agreement with builder that to only part payment before and only full favour afterwards.

T Kalaiselvan
Advocate, Vellore
84440 Answers
2135 Consultations

5.0 on 5.0

Dear Client, 

Construction-related mortgage given to GHMC will only be carried out in accordance with the approved plan, without modification. Should something go wrong or deviate from the approved plan, GHMC has the right to seize control of the mortgage area. Once an officer or GHMC from OC visits SRO to execute the mortgage release deed, this mortgage will be lost until OC release. Before being eligible for a house loan, you must: You possess evidence proving that you are a resident of the location. You possess the necessary wage and tax filed details and are either a self-employed or salaried professional. The land you want to buy has been approved by the Gramme Panchayat (for an independent house not to exceed two stories) or the GHMC (for a flat or independent house within an apartment building). There are no outstanding debts or legal issues pertaining to the property you want to buy. Your ability to make monthly EMI payments matches the amount of the home loan you would like to take out. Your credit score is decent, and you have a history of on-time payments.

Anik Miu
Advocate, Bangalore
8564 Answers
105 Consultations

5.0 on 5.0

You can buy the flat but the title will always be an issue as same will not be clear

Prashant Nayak
Advocate, Mumbai
31573 Answers
169 Consultations

4.1 on 5.0

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