Legal report of a flat from the advocate
saurabh
(Querist) 13 October 2013
This query is : Resolved
Hi, I had selected a property and applied for the loan with PNB Housing Finance. I paid the processing fees and legal fees. So
1. Can i ask my bank to show me the legal report submitted by the advocate on the property that i selected before getting the disbursement ?
2. Does the bank also get the building checked from Structural Engineer
before giving the loan as this is a 10 year old building ?
3. If there are any documents missing as this is a resale deal so should the bank give a loan on such a property ?
ajay sethi
(Expert) 13 October 2013
you can request the bank to furnish you copy of said title clearance report given by bank advocate .
no bank does not get building checked by structural engineer .
if title to property is not clear and marketable bank wont sanction any loan
saurabh
(Querist) 13 October 2013
Thanks Ajay.
But should i get the property papers crosschecked by some other lawyer also or this is sufficient to know that property is clear from all disputes ? Is thr any possibility that my loan agent bribed the advocate and he will give a false legal report. Pls let me know
Devajyoti Barman
(Expert) 13 October 2013
Yes, you can always take independent opinion of lawyers about feasibility of title in the property.
Generally no structural examination is made for a 10 years old property.
Nadeem Qureshi
(Expert) 13 October 2013
nothing left to add, well advise by experts
Rajendra K Goyal
(Expert) 13 October 2013
When the Bank's Lawyer has given the title clearance report, it is sufficient and no need for second opinion. Ask the Bank for attested copy of the report.
Generally the Bank does not get the building checked by structural engineer. It is valued by its valuer in need.
You have option for second opinion for both.
ajay sethi
(Expert) 13 October 2013
an advocate wont take the risk of giving false legal opinion about title to the property .he realises the consequences of giving flase written legal opinion .
if you so desire take second legal opinion
saurabh
(Querist) 13 October 2013
Thanks to all. But if the bank says no to give the attested copy of the report then what can i do ? What is the other option. P,s let me know . Thanks
Devajyoti Barman
(Expert) 13 October 2013
why are you so interested to get its report. if it sanctions the loan, then you can be sure about its title.
Anirudh
(Expert) 14 October 2013
What legal opinion that bank obtained is for its purposes and certainly not for your purpose. You cannot say that bank has done due diligence and obtained legal opinion therefore it is the bank's responsibility. CERTAINLY NOT. Even after doing all such due diligence, if something happens, bank will certainly go after you to recover the loan. You cannot escape. Therefore, you have to satisfy yourself about the property whether it is free from any encumbrance or not.
As the bank is charging you for the legal opinion obtained by it, you can certainly get a copy of the same. But you cannot insist that the same should be attested and given to you. The bank is not obliged to do so.
As rightly said, the structural soundness of the building does not come into play.
saurabh
(Querist) 19 November 2013
Hi All, As per replies above i checked the leagl report.
In that it is mentioned that the very first registry papers are lost by the owner and they had filed an FIR and gave an ad in newspaper.
Now the bank is considering the Certified Copy of First Registry to process my loan. So in this case what can i do on a safer side for myself. Bank also said that i have to sign on a format that i know that registry papers were missing when the loan is processed.
What further due diligence can i do so that i will not get any problem in future or when i sell the property.
Should i ask for copy of FIR ?
Thanks
Rajendra K Goyal
(Expert) 19 November 2013
You may keep the copy of the FIR along with the certified copy of the registered sale deed.
Bank is justified to take the undertaking to safeguard its interests.
saurabh
(Querist) 19 November 2013
Ok, But i hope thr is a possibility that bank will say no to give me the copies. As i had also said that will not give me the copy of legal report. What else can i do ?
ajay sethi
(Expert) 19 November 2013
dont purchase the property . if original title papers are missing .
saurabh
(Querist) 19 November 2013
But bank is giving the loan on the basis of certified copy of registry. Actually X registry is missing and X sold it to Y (to his mother) few years back and mother is selling it to me. So can thr be any issue ?
ajay sethi
(Expert) 19 November 2013
when any original documents are missing it is difficult to sell the property .banks are also reluctant to give loan . in your case orginal document have been lost by the owner . bank is giving loan on basis of certified copy of said documents . although X had taken precaution of filing an FIR and giving ad in paper avoid purchasing the property .
saurabh
(Querist) 19 November 2013
Dear Ajayji, As i already paid a lot of amount and only loan part is remaining so what can i do now. What type of problem can i face in future if i buy. It would be gr8 if u clarify. What legal help can i take at this moment and before disbursement of loan. Thanks
saurabh
(Querist) 19 November 2013
Dear Ajayji, As i already paid a lot of amount and only loan part is remaining so what can i do now. What type of problem can i face in future if i buy. It would be gr8 if u clarify. What legal help can i take at this moment and before disbursement of loan. Thanks
