The doctrine of buyer beware commands that while purchasing a property the onus is on the prospective buyer to satisfy himself that the title is free and marketable. If you have evidence that despite your due diligence you could not have discovered the defect in the title then you may file a suit for recovery of money against the bank. Precede it with a lawyer's notice.
Defunct property title sale under Sarfaesi Act
Participated in SBBJ auction n became successful bidder deposited 25 pct of bid amount .Came to know from Seller (builder) that buyer haven't paid full consideration. I intimated bank that title is Defunct and i am not going to purchase property till title got clear between Builder n auction bank as per transfer of property act sale consideration not passed.But bank is not refund my initial deposit and demanding remaining amount with out clearing out dispute.Please guide for legal rights n action to be take.
Asked 7 years ago in Property Law
Religion: Hindu
4 Answers
1) rule 9(3)(4) of SARFAESI ACT provides
3) On every sale of immovable property, the purchaser shall immediately pay a deposit of twenty-five per cent. of the amount of the sale price, to the authorised officer conducting the sale and in default of such deposit, the property shall be forthwith be sold again.
4) The balance amount of purchase price payable shall be paid by the purchaser to the authorised officer on or before the fifteenth day of confirmation of sale of the immovable property or such extended period as may be agreed upon in writing between the parties.
5) In default of payment within the period mentioned in sub-rule (4), the deposit shall be forfeited and the property shall be resold and the defaulting purchaser shall forfeit all claim to the property or to any part of the sum for which it may be subsequently sold
6) Rule 8(6) mandates secured creditor to set out in terms of sales notice any other thing which authorised officer considers it material for purchaser to know .in order to judge value of property
7) if there was clause in auction notice that intending purchaser ought to verify title to property and other statutory liabilities then you cannot turn around and object to forfeiture of advance money
8) if information was concealed you can seek refund of earnest money and stay of forfeiture by filing writ petition in HC
This aspect what you fond now should have been verified before participating in the auction.
In fact you have agreed to bid in the auction after accepting the terms of bank for s is where is condition.
However, even now you can demand the bank to provide proper title to sell the property and get the sale deed registered in your name or to cancel the auction and refund the amount deposited towards the auction.
If the bank fails to provide you the relief, you may drag the bank to consumer forum for deficiency of service and compensation besides refund of your amount held in deposit by bank.
1. Bank has kept the original sale deed of the property from its owner being either the Borrower or the mortgagor of the said property.
2. When payment is still pending, th seller can not sell its property and register the sale deed in favour of the buyer being the mortgagor herein.
3. There is no merit in your refusing to buy the property on the ground that the seller (builder) has told you that the buyer have not paid the full amount of consideration since in that case there should have been no registration of sale deed where he has admitted that he has received the full payment towards consideration for selling the said property.
4. The Bank will not accept your said logic to refuse to buy the said property after being declared as the highest bidder.
