Fuidng of common area owned by builder
sreekumar pai
(Querist) 11 March 2014
This query is : Resolved
A builder has construced 20 villas for old age people ( retirement homes )and a common dining hall inside the project. ( owned by builder ) While handing over the project builder executed an agrement with inmates wherein it is mentioned that the inmates will have the right to use the common area including dining hall at a cost of 3500/- per month towards lunch/dinner expenses. whether a bank can give loan against this common area owned by builder ? If yes, whether the proerty can be enforced under SARFAESI & sell to an outsider? Request to address the query by quoting relevent provisions of TPA please.
R.V.RAO
(Expert) 12 March 2014
“A developer cannot sell anything other than unsold flats in a building,” said the Mumbai Suburban District Consumer Disputes Redressal Forum.
you can approach consumer disputes redressal forum.
home loan lending banks lend money for owning a property or for buying even a common area in a property(like parking).
for building owner's ownership of an area,banks do not lend, as no security is created for their lending.
even if you finance such part of builder's property,you may not find a buyer tomorrow when u sell.
section 10 of transfer of property act prohibits such transfer
"Condition restraining alienation
Where property is transferred subject to a condition or limitation absolutely restraining the transferee or any person claiming under him from parting with or disposing of his interest in the property, the condition or limitation is void, except in the case of a lease where the condition is for the benefit of the lessor or those claiming under him:
PROVIDED that property may be transferred to or for the benefit of a women (not being a Hindu, Muhammadan or Buddhist), so that she shall not have power during her marriage to transfer or charge the same or her beneficial interest therein"
sreekumar pai
(Querist) 12 March 2014
Sir, Thanks a lot for your valuable opinion.
R.V.RAO
(Expert) 12 March 2014
you are welcome.
