I want to buy a apartment but landowner/builder has misplaced the original document of land. he has a ghmc (greater hyderabad municipal corp.) approval and have a duplicate copy of land. he has completed a one phase of apartment and handedover the flats to flat owners with registry.
i want to just need clarification that any chance that landowner may have taken any loan/mortage in that land. if it is, how we can sure no problems will come to flat owners.
Asked in Property Law from Hyderabad, Telangana
The very question of misplacing or losing the documents create suspicion.
the issue is to be tackled very carefully.
There are chances that the owner mortgaging the property with any bank or a NBFC pledging the original title documents and afterwards on the basis of an application stating that he lost the original documents he might have procured the certified copy of the registered documents.
Evan an indemnity bond executed by landowner now to sell the property on the basis of certified copy of the registered title document may not be of any use in future because the landowner will not be bound by such unregistered document (indemnity bond) and will escape the responsibility.
Unregistered mortgage deed even with the bank cannot be traced so easily, the banks will offer loan on an equitable mortgage and do not register the property instead they mad register the memorandum of deposit of title deeds alone which will not reflect in EC.
Take a legal opinion from a local lawyer before venturing into the purchase of the property.
If it is a resale property then a certified copy of the sale deed can be obtained from the sub-registrar's office. You should conduct due diligence to ensure that the title of property is free and marketable. It is common among builders to misrepresent the facts to sell a property which is not free from encumbrance. Engage a lawyer to do due diligence.
1) dont purchase flat in complex wherein builder does not have original documents
2) it is possible builder may have mortgaged the land and taken loan and has declared later that originals are lost
3) contact a local lawyer .
If the original document is known to be as misplaced then may be recovered in future. Some cloud of suspicion is in this aspects. Title deed is important document in a land transaction matter. So there is a chance for taking loan with pledging the document may occurred from the side of Builder. Ask new encumbrance certificate with regard to the property to builder.
1. Yes, there is every chance that the land owner/builder has availed loan from the Bank for which he has created security interest on the said land by mortgaging he prperty by depositing the title deed of the said land,
2. it is not possible to find out where has he made the said deposition or whether he has at all deposited the same of not but it is very abnormal that the title deed of the land is missing and also that he has not lodged any missing diary and released advertisement in local Newspapers notifying the said loss/misplacement,
3. it is highly risky to buy such properties.