we are planning to buy a flat from a builder by taking loan from a bank. The builder has availed construction loan from a financial institution and has mortgaged about 20 flats in one lot which includes our proposed flat also. The individual flat nos are mentioned in the mortgage deed. The mortgage is registered and also charge is created with ministry. My questions are
1. Can the builder execute agreement to sell when the property in question is already under mortgage
2. If the builder has to take out only one flat out of the pool of 20 by paying proportionate loan amount
Can the release deed be drafted for only one flat
3. Since the bank can release our loan only after creating mortgage
should we first get the release deed registered to modify the original mortgage so that the property is encumberance free in the hands of the bank
4. Is there any time limit for registering the release deed after execution or execution and registration should be done at the registetrar office on the same day
5. Any other precaution is to be taken by me
1. A mortgaged property cannot be sold and if sold it cannot be registered by the Sub Registrar. 2. The builder took the loan on all the flats jointly, so he cannot release one flat. 3. Only after releasing the loan by the builder, the bank releases the documents. 4. The period noted in the loan/mortgage agreement is the crucial date to repay the loan. Before that date, if the repayment is done, the mortgage deed/deeds will be released.
