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Sandeep Jaiswal
(Querist) 28 February 2011
This query is : Resolved
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Devajyoti Barman
(Expert) 28 February 2011
It all depends upon the seriousness of the cases. If the cases are petty and do not have much merit in it then you may not worry much. Else you have to again run after him to get yourself indemnified in the event the property is lost in the legal battle.
Sandeep Jaiswal
(Querist) 28 February 2011
Thanks for your valuable comments sir. Will an indemnity bond suffice as my security ?
In case the same suffice, I shall go on to buy the property as my builder is ready to give the same? However, the bond shall mention the 'loss' to be indemnified and not the market value of the property? Shall that be a worry?
Please help as I am going to invest my lifelong income on the same.
Sachin Bhatia
(Expert) 28 February 2011
Better to buy undisputed and clean titled property.
Sandeep Jaiswal
(Querist) 28 February 2011
Yes, Mr. Sachin Bhatia. I totally understand your point. But the point is that the title is clean enough from various searches done and certification seen by me from the builder. Some third party has filed a suit for his own interest. Further, the builder is of a repute who owns half of the land in Thane. Chances are that he may win the case. But if he loses, can I be made to suffer? Especially when I have the indemnity bond as well.
Please provide me with your valuable comments.
Bhushan V. Kale
(Expert) 28 February 2011
You have to go through the merits of the cases filed against the builder. Its goog that the builder is executing indemnity bond in your favor. However, it the judgement goes against the builder and if he refuse to indemnify your loss, in that event you have to go to Court against him.
Better to purchase undisputed property.
Devajyoti Barman
(Expert) 28 February 2011
Your sufferings could only be understood if you give details of the cases filed against the builder.
Sandeep Jaiswal
(Querist) 28 February 2011
Sir/s,
I was just wondering that if the builder has a clean title clearance certificate from the various Municipal authorities, then would it still be necessary to know the facts/merits of the cases filed.
As far as I Know, the builder has no case against the person from whom he has bought the plot. It is the cousin brother of the seller who has filed the case stating that he is one of owners of the property. Please suggest.
Sandeep Jaiswal
(Querist) 28 February 2011
And further the builder is stating that in case,he loses the case also, he shall do an out of court settlement by paying him cash/some other land. Why would he risk the danger of 80 flat owners of the building eating his head. He has 20 buildings coming up in that area and is a very renowned builder in Thane.
Bhushan V. Kale
(Expert) 28 February 2011
No Doubt, you are a bonafide purchaser. That protection is always in your favor. But, you should be ready for the future.
Sandeep Jaiswal
(Querist) 28 February 2011
Yes, Mr. Kale, Barman and Bhatia. Thanks a lot. Further, LIC, Bank of India, ICICI Bank and Deutche Bank are sanctioning loans to the buyers of my property based on their evaluation except State bank. Bank of India has given a loan of Rs. 136 crores to the builders for this project. I think they must have done some title search on this property.
Mr. kale- I know that there is a case filed against the builder and the same is mentioned in the agreement which I have signed. Will I still be called a "bonafide purchaser". PLease explain me how am I am bonafide purchaser and how will law protect me having known about the suit?
Please suggest Sir.
Devajyoti Barman
(Expert) 28 February 2011
If you know the existence of the case then the Rule of Lis Pendence applies and moreover you can not take the benefit of the principle of ' bona fide purchaser without notice.'
Sandeep Jaiswal
(Querist) 28 February 2011
I think i should visit a lawyer on this with the papers....thanks everyone...
