Sale of mortgaged property

Querist : Anonymous (Querist) 06 June 2018 This query is : Resolved
Can a builder sell a property / flat, which he has simple mortgaged to financial institution for availing finance?
If the builder want to sell one of the property / flat out of the number of flat / property mortgaged, what legal documents to be obtained by the purchaser?

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SHIRISH PAWAR, 7738990900 (Expert) 06 June 2018
Builder cannot sale the mortgaged property. Builder has to repay the loan taken on the property and after getting loan clearance certificate from bank builder can sale the property to purchaser.

Guest (Expert) 06 June 2018
It is a common practice adopted by the builder and financier/banks as and when a flat is sold the sale consideration would go to escrow account and financier/bank releases it to the purchaser of the flat

Guest (Expert) 06 June 2018
In the event even if the builder defaults payment to financier/banks the flat buyer will not be affected as it would be a Registered Sale Deed for the flat buyer.

Guest (Expert) 06 June 2018
If you are very particular you could get a legal opinion of the documents from a local advocate.

Ms.Usha Kapoor (Expert) 07 June 2018
BUILDER CANNOT SELL MORTGAGED PROPERTY. ONCE THE MORTGAGE LOAN IS CLEARED AND THE BANK GIVES A LOAN CLEARANCE CERTIFICATE THE BUILDER CAN SELL THE PROPERTY.

P. Venu (Expert) 07 June 2018
You have not brought out the complete facts. As the learned expert Rajkumar has pointed there exists many a legal lacuna because of the inappropriate practices adopted y the Builders with the active knowledge of the Bankers.

K Rajasekharan (Expert) 07 June 2018
When a person (buyer) wants to purchase a flat which is already mortgaged by the seller to a bank, the seller can transfer the ownership along with the mortgage in a rather simple procedure if the buyer agrees to and executes a proper agreement. The mortgage will then be shifted from seller to the buyer of flat.

Guest (Expert) 07 June 2018
Yes, can be sold on the basis of a tripartite agreement, subject to fulfillment of other conditions of transfer and .financial obligations.

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