Buying a property which is mortgaged
Abhi
(Querist) 07 January 2015
This query is : Resolved
I am buying a resale 1BHK flat (15 years old). I had paid 1% of the total value of the flat as part of token to the seller. Now during the course of submitting the loan application and collecting documents, Seller informed me that this flat(1BHK) is mortgage with the bank. He further explained me that he has 2 falts (1BHk-given on rent and 2BHK-currently residing). He said he had taken loan for his 3 enterprises keeping both the flats mortgage to a co-operative bank. In 1BHK flat, he is the only owner and 2BHK, he and his wife is a joint owner of the flat. The loan lended by the bank to him has his wife as guarantor. Now since I am interested to buy 1BHK flat, he said he will get NOC from bank as well as valuation certificate from bank for the 1BHK flat. He said this certificate can be produced to my bank (nationalised bank) to get home loan and get laon on 1 BHK flat paid off. He also showed me a letter from the bank that bank doesnt have any problem selling 1BHK flat.
Please advise me the following points
1. Can I still go with purchasing or stay away from this deal
2. How the bank will determine that how much loan need to be paid off to release original documents for 1BHK
3. Can I legally get any claim from the owners later on from his wife?
4. Once sellers bank releases all the original sale deeds and share certificates (original), can they make any trouble as far as 1BHK flat is concerned.
5. Will my nationalised bank (SBI) will make effort to investigate on this?
6. What is due diligence conducted by bank
Thanks in advance,
I am a first time buyer and very nervous about the deal.
Advocate M.Bhadra
(Expert) 07 January 2015
When a house has a mortgage on it, buying it means transfer of ownership along with the mortgage. It is a rather simple procedure especially if the buyer and seller have the mortgage from the same bank. This would mean that the mortgage will shift from one person to another.
1.You can proceed
2.If the vendor paid secured loan with interest then bank can handover the original deed.
3.guarantor has also obligation.
4.No.
5.Yes lending bank can also search the property.
6.It is their own discretion.
Need corroborate with other documents.
Abhi
(Querist) 08 January 2015
Thanks for your reply Mr. Bhadra.
I would like to mentioned that he acquired one loan keeping both the property mortgaged. Now how will bank determine that how much loan needs to be paid to get the documents?
Also, the above loan is taken for his 3 enterprises?
Hope my question makes some sense.
Or is it I don't have to worry as long as bank to bank payment is done.
Please advise.
