Loan against sale certificate
Srini
(Querist) 01 September 2016
This query is : Resolved
Hi, I am planning to buy a property from a person who bought the property through Auction. I have the photo copy of the Sale Certificate and Sale Deed of the defaulter and other link documents with me. But the bank refuses to give me loan saying they cannot give loan on properties bought it auction. Is it true?. If some how if I manage to buy the property will there be any legal issues with defaulter?
Kumar Doab
(Expert) 01 September 2016
You may prefer legal opinion from your own counsel to check if there is any defect..........
P. Venu
(Expert) 02 September 2016
The stand of the Bank defies logic or reason.
H.M.Patnaik
(Expert) 02 September 2016
If the property was put to auction due to default in payment of bank loan, it is the financing bank holding first charge on the mortgaged security who first repossesses the
the same and put it to auction thereafter.
Even though ,the action of the bank is as per statute, the aggrieved party may try to challenge the act of the lending bank and prolong the litigation in other forums. In view of the above, a a practice , bankers do not entertain loan proposals on such property.
Srini
(Querist) 02 September 2016
The current owner of the property bought the land in year 2012 and I also checked the EC which says Executant as ICICI and the person name is the current owner
Rajendra K Goyal
(Expert) 28 September 2016
you said:
I have the photo copy of the Sale Certificate and Sale Deed of the defaulter and other link documents with me.
Reply: Where are the originals, inquire from seller.
You said:
But the bank refuses to give me loan saying they cannot give loan on properties bought it auction. Is it true?
Reply:
There is possibility that the title is defective. Have legal opinion from Bank lawyer or approach another Bank.
Rajendra K Goyal
(Expert) 28 September 2016
You said:
some how if I manage to buy the property will there be any legal issues with defaulter?
Ans:
discuss in detail with your lawyer after showing all related documents.
There may be possibility that some case from borrower is pending with the court.
Raj Kumar Makkad
(Expert) 28 September 2016
Your checking should have been supported with the search report of the lawyer as lawyer reads between the lines.
Kumar Doab
(Expert) 29 September 2016
Expert Mr. Rajendra K Goyal is highly experienced in banking matters and shared rich insights.
His remarkable, remarks can benefit you.
It has been believed that sale if final and conclusive at the fall of hammer.
There might be ramanants.
Certainly you should have approached a very able counsel for proper legal opinion and should approach your able counsel for considered legal opinion, now.
