Sarfaesi act sale certificate
Anand
(Querist) 25 November 2013
This query is : Resolved
Hi,
I am planning to buy an auction property. Bank has mentioned that they will issue Sale certificate and not sale deed as per the Sarfaesi Act. The bank manager will come with me to registrar office to register the property in my name.
I have few questions in regards to this.
1. Will I be able to re-sell this property to someone else. What should I take care of now(I mean any documents).
2. can I take a loan against property(not home loan as bank give loan only against sale deed) after I register the property in my name.
Please suggest
Devajyoti Barman
(Expert) 25 November 2013
1. Yes, Sale Certificate is sufficient. Try to get vacant possession of it.
2.Yes if you get vacant possession of it.
T. Kalaiselvan, Advocate
(Expert) 26 November 2013
On the basis of Sale certificate you can register the sale deed in your favor
malipeddi jaggarao
(Expert) 26 November 2013
1. Yes. Under SARFAESI Act transfer of property from the financial institution to the purchaser need not be by Registered Sale Deed but a simple sale certificate (as per standard proforma of the Banks).
2. You can re-sale the property. There is no defect in the title. As a precautionary measure you insist the Bank to give all the papers obtained by it at the time of taking mortgage. Ask for the legal opinion copy also.
3. You can take loan, mortgage this property even to the Banks also. No difference.
Anand
(Querist) 26 November 2013
Sorry did not understand "you can register sale deed in your favour"
Bank is going to issue me a Sale Certificate. Based on that sub registrar is going to make registry in my name(so that it will reflect in EC)
How will I be able to make a sale deed.
T. Kalaiselvan, Advocate
(Expert) 26 November 2013
You can execute a sale deed to the prospective purchaser on the basis of the sale certificate which will be registered before the registrar in your favor and which will in turn reflect in the Encumbrance certificate too.
Anand
(Querist) 27 November 2013
Thanks Kalaiselvan.
K.K.Ganguly
(Expert) 27 November 2013
1. Sale Certificate issued in favour of the highest bidder is a valid document for conveying the title of the property auctioned,
2. You can sell the said property such acquired,
3. It is a fact that Banks refuse to sanction loan if registered Sale Deeds/Title Deeds are not deposited with them for the purpose of mortgaging the properties & for the said purpose some such eauction buyers get their so acquired properties registered by getting a Sale Deeds prepared linking the sale certioficates.
