What are the necessary documents that I should check before bidding? Can I still proceed if I am the sole bidder and it's the second auction that has been called for? Also can the property be disputed later after the sale ? If so then what are the steps to immunise myself from such legal battles later on? Case here is that the owner of the foreclosed property, lets say, Mr X is deceased and there are multiple members of the family from his wife, his sons and his father claim ownership to the same.
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1) before you purchase the property check whether title is clear and marketable
2) take inspection of all original documents
3) take search in sub registrar office for last 30 years
4)visit the site personally and check the condition of the flat
5) whether property taxes have been paid till date
6) whether society maintenance has been paid till date
7)contact a local lawyer . Ask him ru give written opinion that title is clear and marketable then only bid in the auction
1. There is always a risk of getting defective title to the properties purchased through auction. You should get a due diligence report from your lawyer to ensure that the title is free and marketable. All the documents under which rights are claimed by the auctioneer should be perused threadbare before placing a bid.
2. On the demise of the owner his property devolved through succession on his heirs i.e widow and children.
Hi, it is better you can take the legal opinion from the advocate and proceed further. It is very difficult to say anything without verifying the documents.
During this 15days period while I'm expected to settle the remaining 75%, Will a stay order nullify my purchase? Case here is the defaulter is trying to settle his debt and the Bank claims its 2yrs of wilful default and for the past 2auctions no such claims were ever made by the party.
1) Don't purchase property unless you are satisfied that title is clear and marketable
2) if you have made payment and sale is confirmed by DRT stay won't be granted by court
Buying a foreclosed home is a little different from buying a typical resale.
In many cases:
Only 1 real estate agent is involved.
The seller wants a preapproval letter from a lender before accepting an offer.
There is little, if any, room for negotiation.
The home comes as-is, and it's up to the buyer to pay for repairs.
On the upside, most bank-owned homes are vacant, which can speed up the process of moving in.
Buying a foreclosure (FCL) is often touted as a way for both owner-occupants and investors to get a great deal on a property. However, the potential financial rewards of buying a foreclosure don't come without their share of hard work and headaches.
It can be an exciting and sometimes overwhelming process to find and purchase a home. You want to ensure the home you purchase is right for you and that you have a seasoned real estate agent to help guide you through the process.The two common ways of buying a foreclosed home are through a real estate agent or through a public auction.
During this 15days period while I'm expected to settle the remaining 75%, Will a stay order nullify my purchase? Case here is the defaulter is trying to settle his debt and the Bank claims its 2yrs of wilful default and for the past 2auctions no such claims were ever made by the party.
It may not nullify your purchase you may given an option to take back your amount.
A conveyance deed executed despite an injunction passed by the court will not only pass a defective title but also amount to contempt of court. So conduct due diligence through your lawyer.
Hi
If you are buying the property in an public auction by the bank under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, you will get absolute title to the property after the payment.
Please be informed that NO CIVIL COURT/ HIGH COURT can interfere in the proceedings under SARFAESI Act. So if the family members of Mr.X are claiming ownership, it is almost next to impossible to get a stay from the court when the asset is declared to be sold through SARFAESI. Even if they succeed in getting a stay order by a remotest chance of 1%, the bank will need to refund you the money with interest within 3 months from the date of such stay.
In order to convince you further on my view, please refer to Mardia chemicals case Mardia Chemicals Ltd. Etc. Etc vs U.O.I. & Ors. Etc. Etc on 8 April, 2004, CASE NO.: Transfer Case (civil) 92-95 of 2002.
In Mardia Chemicals, the Supreme Court held that “to a very very limited extent, the jurisdiction of the Civil Court can also be invoked” (at para 51, page 2392). The limited exception which is carved out by the Supreme Court is where the action of the secured creditor is alleged to be fraudulent or where the claim of the secured creditor is so absurd and untenable that it would not require any probe whatsoever.
These observations of the Supreme Court emphasize that the exception which is carved out is a limited exception. Like all exceptions, this exception must be strictly construed. A borrower or a third party cannot be permitted to defeat or to render nugatory the provisions of the Act merely by a stray reference to an allegation of fraud .
So in your case, the claims of Wife, Sons and Father of X will be negated unless and until there is a fraud committed by the bank. To my knowledge, banks are responsible to nation and they will not indulge in such fraudulent activities, especially with Debts Recover Tribunal which is headed by Retired High Court Judge.
