Purchase of property mortgaged with bank
Shailesh Mittal
(Querist) 14 July 2012
This query is : Resolved
Dear Experts,
I am a Consulting engineer & contractor,i have a senior citizen client whose house i am building.House is under construction triple story house which can be sold as separate floors. Client has taken a loan from bank to build this house(his son being guarrantor as my client dsn't have any source of income)and the land papers are with bank.
My client used a good amount of loan somewhere else and couldn't pay me for my services. Now my client want me to take one floor of house in lieu of balance payment, completing the construction and some 'X' amount.Once completed,the market value of whole building will be approximate 4.5 times of loan taken from bank .'x' amount will be only 10% of balance loan. In such scenario how should i safeguard my interest , if i take a floor as requested by client i can't get it registered in my name as papers are with bank. I dn't see in near future client will clear bank loan. Client have no intention to sell whole building or any other floor, Even this particular floor also they willing to give me only. I have a consideration for my client but want to safeguard my interest also.Client wants to repay bank out of rental income in future which is possible up to some extent over a long period.Period of loan is 17 yrs.
Its somewhat peculiar situation cropped up because of some bonding with client.Kindly advice if some MOU / Registered GPO etc is possible to safeguard my interest.
Regards,
Devajyoti Barman
(Expert) 14 July 2012
It would require a skilled job of an an advocate.
Kindly engage a legal professional.
Nadeem Qureshi
(Expert) 15 July 2012
Dear Shailesh
if the whole property is mortgage,you can not purchase the property without Bank NOC. if you purchase then it is your own risk. if the loan amount has not been paid in future the bank can recover the entire amount through auction of entire property.
Feel free to call
ajay sethi
(Expert) 15 July 2012
you are in catch 22 situation . your client is not in position to pay your fees for construction .he wants you to atke a floor instead .
since property is already mortgaged to bank he cannot cretae thrid party rights on the property without bank approval .
ask your cleint to obatin bank consent for giving you a floor . if bank is willing go ahead . contact a local lawyer . get agreement drafted by him
Shailesh Mittal
(Querist) 15 July 2012
Dear Experts Devajyoti, Nadeem & Aajay jee, thanks a lot for sparing your valuable time and helping me in taking a balanced view of the situation.
Regards.
malipeddi jaggarao
(Expert) 18 July 2012
Since the market value would be 4 to 5 times of the Bank loan, your client can request the Bank to give NOC for sale. The property has to be revalued on completion - at that these facts can be brought before the Bank. The other solution is switching over to some other Bank who is willing to release one floor and for taking over the existing loan from the present bank. All depends upon the rapport of your client with the Bank.
