Dear Experts,
I shall try to keep this explanation as crisp as possible. Need your valuable suggestion.
1) I booked a Flat in an under-construction project (around 50 flats, 4 floors), in May 2014.
2) Committed possession date was Jan-2015
3) During bank home loan application process, I was told by Bank that the flat that I have booked, has been registered to one of the directors of the builder and the flat has been mortgaged to a local co-operative society, due to want of funds. They have recently cleared that amount and the clearance certificate has been issued as well.
4) The current bank that has approved the loan for me was recommended by the builders as the same bank has funded loan for this project.
5) Since the bank mandated that we have to complete Sale Agreement, I went ahead and paid 20% of the total value of the Flat. (close to 12 Lakhs)
6) The loan has been approved but the revised project completion date is being told as Sep-2015.
7) Now the builder is mounting pressure on me to approve release of funds from the Bank.
8) The Bank Manager says, it is safer to get the flat registered, so that Ownership is clearly with me.
Now, I am worried on what is the correct action to be taken? Before I proceed, I need your expert suggestion on,
1) Legally is it fine that I register this flat in my name from the 2nd party instead of the actual Builder?
2) Will this cause any problems to me in the future?
3) If it is ok to proceed further, should i release 70% of the amount and pay only the interest component to the bank, or go ahead with the Principal+Interest component but release only 70% of the amount? I believe the builder would agree with both these options, as he is in need of funds.
But I want to take the right step, to avoid any future issues.
Thanks in advance,
AK
