Purchase of flat from builder
Respected sirs ,
I have booked a flat by paying 20% amount in Navi mumbai.Registratiion will be after 7 days.
Builder has taken project loan from India bulls and entire project is under mortage with India bulls
I have gone through blank copy of agreement to sale .There is no clause which mentions about mortgage of project .Builder says that NOC from India bulls will be given after 2 days.Iam also avaiing 60% bank loan from SBI.So please advice
1Is this the routine practice in mumbai of not mentioning mortgage at the time of registration ?
2 Whether NOC from India bulls should be annexed at the time of registration?
3 If builder defaults project loan,can the buyer,property can be attached by India bulls even after full payment and possetion
4 project is now 95% ready and sent for occupancy .60% flats are slid by now
Asked 8 months ago in Property Law from Greater Mumbai, Maharashtra
1) details of mortgage done by India Bulls of project has to be disclosed by builder
2) money received by builder from flat purchasers will be placed in escrow account. payment received from flat purchasers would be used for repayment of loan
3) flat of purchaser would not be attached
4) wait for issue of OC then enter into sale deed with builder
1. Yes, it is not practice in many other parts of India as well.
2.Yes, it is required.
3.Yes,buyers property would be attached and sold out to recover money.
4.If that is so then I do not find much reason to worry.
1. This is not routine or lawful but in general the builders go by such practice.
2. NOC is to be obtained before registration
3. The possibilities are more that way.
1. Whether it is routine practice in Mumbai or not is something only a Mumbai based lawyer can tell. What I can tell you is that no wise buyer will buy property in a project that is mortgaged with a bank/financial institution as in the event of default the lender can sell the mortgaged property to recover the principal amount lent with interest. The buyer will then have to run to courts to recover the sale consideration from the builder.
2. Furthermore, it is basic law that a property which is mortgaged cannot be sold without the consent of the mortgagee.