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Da/gpa vs supplementary deed

(Querist) 16 December 2020 This query is : Resolved 
Hi All,
Looking for an expert opinion.

I booked a flat with one of the reputed builders.

The builder and the land owners entered into a registered DA/GPA agreement for sharing of flats.
However, the supplementary deed is unregistered.

Now, most of the banks are approving loans for buyers.
But one of the nationalized bank raised this as a concern and is not approving loans for flats in this property.

Since one of the bank raised this as a concern, we as buyers are worried!!

Looking for guidance here.
Is it OK to go ahead with flats in this property given most banks are approving it and builder is reputed.

Or can supplementary deed not being registered is an issue while DA/GPA is registered?
Why the builder and land owner do not want to register the supplementary deed? Is there any money involved?
Guest (Expert) 16 December 2020
The Registration of Supplementary Deed is Legal Mandatory but still many Banks do not question about it and you could well approach those Banks or Financial Institutions
SHIRISH PAWAR, 7738990900 (Expert) 16 December 2020

Yes, I agree with Rajkumarji. Further registration of supplemental agreement costs nominal amount still they avoid to register it.
kavksatyanarayana (Expert) 16 December 2020
Supplementary agreements to the DA with GPA shall be registered before the SRO concerned. As per instruction/guidelines for sanction of house loans, the banks are following their own rules.
Rajendra K Goyal (Expert) 16 December 2020
Though Banks sanction loan after proper scrutiny of the property to be purchased, yet Bank deal in money and not in property. Agreement of loan give vast scope for Banks to recover its loan from other assets of the borrower. The Banks which sanctioned loan were negligent but can recover loan.
One Bank has pointed out this irregularity, let the concerned parties be pressurized to rectify the error.
rm (Querist) 16 December 2020
Thank you all for the reply.
If we as buyers still go ahead with loan from banks which are approving,
What are the risks for us - If supplementary deed is unregistered and DA/GPA is register.
What are the future possibilities and issues we as buyers can face.

Builder is saying it is not an issue as DA/GPA is registered.
rm (Querist) 16 December 2020
Looking for further clarity, appreaciate you help so far
Rajendra K Goyal (Expert) 16 December 2020
It is advised to get all the documents scrutinized by your lawyer in deep.
Isaac Gabriel (Expert) 17 December 2020
Until registered in your name, the title is questionable.Better insist for registration by the seller/developer
kavksatyanarayana (Expert) 17 December 2020
Yes. It should be compulsorily registered.
Guest (Expert) 17 December 2020
Supplemental Deeds and Amendments in the case of joint development would be legally valid and enforceable.even with out Registration.
rm (Querist) 17 December 2020
@narasimha ji. Can you please explain what we mean by
"Supplementary Deeds and Amendments in the case of joint dev would be legal and enforceable even without registration"
Sorry I am naive in legals.

If supplementary deed remains unregistered (builder is not ready to do it and is saying it will not be an issue)
Can there an issue in future - even after the flat and undivided share is of land is registered on my name?
Dr J C Vashista (Expert) 18 December 2020
What is the objection raised by the Nationalised Bank qua title (ownership) of the property, which is important and necessary to be considered, rectified for clear and marketable title ?
It is advisable to consult and engage a local prudent lawyer for necessary analyses of facts/ documents, professional guidance and necessary proceeding.
Guest (Expert) 18 December 2020
There could be No Issues and you could Proceed with that.. Normally all the builders practices the same.
Rajendra K Goyal (Expert) 18 December 2020
Whether the project is registered with RERA. if yes, in addition ask copies of documents submitted with them from RERA through RTI and get these scrutinized by your lawyer.

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