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Pradip (Pl)     07 May 2013

No development agreement between land owner & company

 

BackGroud:

I booked flat in Mar-2012 & applied for home loan in SBI.

 

I shown all documents to branch manager, then Branch manager told to make till date search report from SBI approved Advocate.

 

I have submitted all documents required for making till date search report.  Advocate found that there is no document of sale deed between owner of land and building Company. Owner of land is director of building company which is limited company. So mortgage of flat not possible due to nonexistence of sales deed as per advocate comments.

 

I informed this issue to builder then he called me after 15 days & told on phone you go to other bank otherwise you are liable to pay 18% interest per annum on demanded amount which is approximate 23 lacks. & he also send me email of same.

Quetions:

 

1.  am I liable to pay 18% interest per annum as legal documents are pending from builder side ?

2.  is email for liability of 18% interest from executive can be considered as legal notice

 

4.  If document of sales deed between owner & developing company not made available. will it create legal issue to flat owner ? if yes what to do in this situation ?

Can you pls suggest me ?

 



Learning

 2 Replies

Rajendra K Goyal (Advocate)     07 May 2013

The Developer has sent you an e-mail,  he may be charging interest as informed. You should send a notice to the developer about the discrepancy in the documents and for immediate supply of the complete chain of title,. If not received,  get a stay from the court for charging interest and even for further demand of installment. You should also contact other buyers and may take collective legal action if possible.

Due to the search by SBI Advocate you have come to know important discrepancy which you may not have known otherwise. Other Banks may also refuse the loan on same ground.

As a buyer you should ensure clear title of the property you are going to purchase. 

1 Like

Pradip (Pl)     08 May 2013

Many thanks for your valuable suggetion.


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