Like to purchase a property auctioned by a bank
Natrajan
(Querist) 02 October 2018
This query is : Resolved
I would like to buy a property in chennai auctioned by Karur Vysya Bank. But the bank has not taken the possession of the house and a family stays & pay's rent for the owner who himself a defaulter.
I had asked the banker why they haven't take the possession as they had pasted the demand notice since more than five months becoz of that I smell something fishy. Even the tenants are not allowing us to see the house. And the bankers say it's not necessary for them to take outright possession like other bank's & hence say it's ok. Now my question is...1) Still the house generating rent ( as tenant stays ) is it right on the part of the bank to just paste a demand notice & let the people stay there..2) As per SARFAESI Act bankers usually evict the persons & get the property attached to it...Is it true...3) In this case the banker had already announced the auctioned date & nobody has purchased till date.When I spoke to them its ok for them to let the tenant there as it differs between bank to bank..Is it so. 4) Came to know that the flat is in 3rd floor which is unapproved..Please clarify the above points & advise me whether it's worth going further...thanks
Natrajan
(Querist) 02 October 2018
Requesting experts to answer my query
Natrajan
(Querist) 02 October 2018
Requesting experts to answer my query
Guest
(Expert) 02 October 2018
Read terms & conditions, as would have been published by the bank, get your doubts cleared from the designated authority, and decide accordingly, if suit you.
Dr J C Vashista
(Expert) 03 October 2018
Seek professional services of a local prudent lawyer before spending such a huge amount in purchase of the house being auctioned by financer (bank).
Natrajan
(Querist) 05 October 2018
Thanks for reply..My question is can the bank can auction the house while still allowing people stay there for rent. Bcoz the house is generating income and it's been paid to the erstwhile owner of the house & how come the bank still allows this..Pls explain
Guest
(Expert) 05 October 2018
Your latest question reveals as if you are least interested in the buying a property, but wanted only to get answers to your academic questions about whether the bank can sell the house when tenant is there and also who is entitled to get the earning, as the rental income.
If there is any truth about your intention to purchase the property, you should have been least concerned about whether or not the house was generating any rent income, why the banker not evicted the tenant, and whether or not the bank could give loan on unapproved flat of the 3rd floor.etc.
So far as the flat having not been approved was concerned, that should have been your real concern as well as the guiding point for you think whether investment would be safe or not. But still, you were required to use your own wisdom, rather than asking for a query from the experts. Nobody would advise you to buy any flat, which is not legally approved.
In fact, all your description clearly denotes about some hypothetical query of yours.
