Legal search report for 13 years for housing loan
P K SAHOO
(Querist) 17 June 2014
This query is : Resolved
Dear Team
with reference the above subject,we would like to inform that we have not sanctioned the housing loan to customer due to 13 years legal search report is not available in sub-register office for all property transaction between period.The SRO office has provided only record only 2005-06 for property transaction. After the sub register office has not prepared the record and also not provided the Non-encumbrance certificate to respective applicant.As per bank policy 13 search is mandatory for legal search report from impaneled lawyer.
kindly suggest us in what basis and which documents are required for resolve the issue.
Devajyoti Barman
(Expert) 18 June 2014
You can get properly executed affidavit on this regard.
An indemnity bond can also be executed in your favour.
Anirudh
(Expert) 18 June 2014
You approach the SRO's office and apply for encumbrance certificate for 13 years i.e. beginning from 2000(or 2001) to 2014.
They will give.
The question of the SRO office not maintaining the record for earlier years simply does not arise.
Therefore, your only step should be to approach SRO's office and to get the encumbrance certificate for 13 years and above.
No other method will get you the home loan sanction.
Rajendra K Goyal
(Expert) 18 June 2014
The customer is suffering due to the reason the Bank lawyer could not get non encumbrance certificate from Registrar Office, You should try from Registrar office.
Consult the Bank to have the way out in such case.
malipeddi jaggarao
(Expert) 18 June 2014
I agree with the expert Mr.Anirudh. There is no question of not maintaining the record on any registered document by SRO. You are not giving the correct facts.
If it is true, alternative step is:
1) apply for EC for 13 years - If the SRO could not provide, obtain a certificate from them to that effect. Then go for affidavit that this property is not encumbered since....date. Keep it on record. But while sanctioning Housing Loan, the sanctioning authority should obtain permission for this deviation from his/her next higher authority.
These are in cases if the customer's credentials are verified and strong and bank could not afford to loose such customer.
R.K Nanda
(Expert) 18 June 2014
agree with experts.
ajay sethi
(Expert) 18 June 2014
agree with Anirudh
P K SAHOO
(Querist) 19 June 2014
Dear team
The SRO office is not issuing the NEC certificate for 13 years due to non maintaining the records and all banks suffering the loan disb since last 2 months.
If we have taken any indemnity bond from customer and loan is NPA in future. is valid for SARFESI act .
kindly suggest any other alternative.
Devajyoti Barman
(Expert) 19 June 2014
Yes, it is valid and in any case SARFAESI Case has nothing to do with the indemnity bond and it starts irrespective of whether the borrower executes such Bind or not.
malipeddi jaggarao
(Expert) 19 June 2014
There is no link between Indemnity bond and SARFAESI action. The proposed
Indemniy bond is meant to indemnify the bank if there is defect in the title to documents. If there is no title, how anybody take action under SAFAESI?
If you are representing the Bank, and if you are finding problem for fianancing Housing Loan due non availability of NEC, you should get a letter from SRO to this effect that they are not in a position to provide the NEC due to non-availability of records. then your bank can issue a public notice in the local news papers that ...so and so... is mortgaging his mortgage (details to be given) and if anybody has any objection, they should rise the same within 10 days and keep that copy on record. then obtain an indemnity bond from the customer indemnifying the bank against any problems in the title. The sanctioning authority should get prior permission from his/her next higher authority to consider the Housing Loan in the absence of 13 years NEC taking the above precuations.
I hope experts have sufficiently advised and you should stop this thread.
P K SAHOO
(Querist) 19 June 2014
THANK YOU EVERBODY
T. Kalaiselvan, Advocate
(Expert) 21 June 2014
