Hi All,
I have finalized an apartment and after paying 10% money, when I had applied for EC, I figured out that there is an existing mortgage on many units in the apartment project that the builder/developer has entered into. Based on my request the builder has obtained a NOC from the lending bank and provided a scanned copy of the same to me. The NOC, addressed to the builder, states that the lender does not have any claims on the specific unit that I intend to purchase as long as the remaining sale proceeds are deposited into a specific account number. The builder further says that though I issue the cheque to the same account number for the remaining 90% of the sale consideration there will NOT be any rectification/relinquishment deed which will remove this specific unit from the mortgage and it will happen only after the total mortgage that they have taken has been closed satisfactorily. Considering that I have the NOC from the lending bank, what are the risks involved in this deal? What if the builder goes bankrupt and does not service the mortgage?
Thanks for reading and Thanks in advance for your expert opinions.
