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Property sale

(Querist) 25 April 2020 This query is : Resolved 
Dear All,

I have my flat in SRS Residency, Faridabad. I took home loan from SBI in 2012 and its still going on. Due to some problems I could not do registry of my flat. Now, since a long time, I am not doing well financially in my business. Upon that, this lockdown has ruined my whole business that I have already closed my office and informed the staff.

Now I want to sell my flat after lockdown as I am not able to pay monthly 25k EMI. My question is....

1. May I sell this flat without registry done?
2. If Yes, please advise how.
3. If not, why and how to proceed further.
4. Is there any provision that Bank can give me 6 months time with very minimum interest rate so that meanwhile I can search buyer and sell this flat?

I dont think I can survive after lock down for long. I request you all to please advise what could be the best way to get it done. Your reply will be awaited.

Regards

Ishwar Dutt
SHIRISH PAWAR, 7738990900 (Expert) 25 April 2020
Dear querist,

You cannot sale the property with out registration in your name. You have to make registration in your name first. You may negotiate with bank regarding terms of repayment and interest.

Regads,
KISHAN DUTT RETD JUDGE (Expert) 25 April 2020
Dear Sir,
My answers are as follows:

1. May I sell this flat without registry done?
Ans: Yes, you must transfer the loan to the purchaser, it is better to clear the loan and get it registered in your and then sell.
2. If Yes, please advise how.
Ans: The bank must support and your prospective purchaser must finance you.
3. If not, why and how to proceed further.
Ans: No answer required.
4. Is there any provision that Bank can give me 6 months time with very minimum interest rate so that meanwhile I can search buyer and sell this flat?
Ans: It depends upon discretionary powers and you must convince the bank sincerely.
Hemant Agarwal (Expert) 25 April 2020
1. Registration is a MUST for any immovable Property, without which the property will remain without a Clear Title & disputed, at your hands and also in the hands of the new buyer.

2. You can request the financing Bank, to restructure your home loan or transfer loan account to the new prospective buyer party, by following due procedures of law.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com
Raj Kumar Makkad (Expert) 25 April 2020
If the seller of your flat means permoter of the society is agreed then definitely the said property can directly be sold to a propsective buyer but not without taking the bank into confidence as you have already submitted an affidavit before it not to sale the said property without first clearing the outstanding amount of loan and without getting No Dues Certificate.

You need to clearly consult with your banker keeping in view your current situation. Generally solutions get achived if the efforts are made effectively. The buyer can get the loan transferred in his name and you may get the issue solved.
Rajendra K Goyal (Expert) 25 April 2020
You asked:
1. May I sell this flat without registry done?
Reply:
You have not mentioned why the Registration could not be done in your favor. Whether the construction is complete, and possession has been given? If the Builder agrees / has procedure as per rules, to transfer the flat in favor of the prospective purchaser, you can sell it without registration in your favor.

You asked:
2. If Yes, please advise how.
Reply:
If possession has not been given, / OC has not been received builder can transfer the flat in favor of the prospective buyer subject to BBA, other conditions / rules with clearance of Bank dues. Otherwise flat must be registered in your favor first.
Rajendra K Goyal (Expert) 25 April 2020
You asked:
3. If not, why and how to proceed further.
Reply:
Best way is to get the flat registered in your favor, pay the Bank dues and sell to prospective buyer.

You asked:
4. Is there any provision that Bank can give me 6 months’ time with very minimum interest rate so that meanwhile I can search buyer and sell this flat
Reply:
It is difficult to diminish rate of interest by the Bank, no reason to do this. Bank comes up with schemes of One Time Settlement, which gives handsome benefits for irregular loans, for housing loans such schemes are confined to extraordinarily little coverage. You can search prospective buyer, clear Bank dues and proceed.
Raj Kumar Makkad (Expert) 26 April 2020
The status of the property is a crucial fact to be known first prior to advising you definitely, however, the issue of the banker can be got issued with the concerned officials.
Dr J C Vashista (Expert) 26 April 2020
Before proceeding further it is better to contact and discuss with your Banker/ financier for proposal/offer of sale. However, the Banker/ Financier shall consider present economic circumstances and can allow you some time to clear outstanding / dues / EMI.
Meanwhile find out prospective buyer and get it transferred in the records of Builder in the name of vendee directly.
P. Venu (Expert) 26 April 2020
Who is having title to the apartment - the builder or some other person? If the latter, what is his/her stand in the matter?

Equally decisive is the stand of the Banker.
Rajendra K Goyal (Expert) 26 April 2020
If the property can be transferred / registered in the name of prospective buyer, convince the prospective buyer to take loan from SBI, Bank would readily agree to close your loan and open new loan in his name,provided other requirements are completed / fulfilled by him. Since the search report regarding property is already with the Bank, loan process would be fast.
Raj Kumar Makkad (Expert) 26 April 2020
Unless you post the entire facts as asked for, no concrete opinion can be offered by any expert except based upon assumptions and presumptions.
Rajendra K Goyal (Expert) 26 April 2020
Advice has been provided based on the given facts, please post full facts regarding the title, registration etc. of the property for more to the point advice.
Ishwar Dutt (Querist) 26 April 2020
Dear All, I am thankful to everyone for their suggestions. Let me elaborate the things one again. I purchased this flat and took the possession in 2012. Home loan is from SBI. Did not get it registered as I was running out of money that time. In between the registry was on and off in Faridabad so could not get it done. Meanwhile the builder gets caught in fraud and SRS is closed now. Now I am living in this flat, paying monthly EMI to SBI, maintenance to RWA but unable to pay anymore EMI as I am financially broke. Now my concern is if I want to sell this flat after Lockdown period, may I do it without registry? Also some of you advised that I can request the Bank if they allow to transfer the loan to potential buyer which is a good option which I will discuss with Bank. But only concern is that builder is behind the bars so perhaps I am unable to get any NOC from the builder if required.

Please let me know if you have any additional information to add.

Regards

Ishwar Dutt
Raj Kumar Makkad (Expert) 26 April 2020
After reading the additional facts from your side that SRS permoters are behind bars since a long and registration of the said flat has not been taken despite of deposit of the sale consideration in full to them.

In the given facts, it now depends upon the proposed buyer to see whether he is ready to purchase the said property on the basis of your undertaking to get the registration done either through the builder/promoter directly or after getting it first done in your favour and then in his favour.

The things now stand complicated. I think no person of prudential mind shall purchase only a possession in the market rates. If value is reduced then someone may come but still the issue of bank loan shall come in the way as banker shall not be agree to transfer the loan in favour of the proposed buyer as you shall not have NOC from the side of the builder.
Rajendra K Goyal (Expert) 26 April 2020
Whether Housing Society has been formed, has taken full charge of the affairs?. If yes, it may come to your help.

It is strange, SBI has not followed up the matter for depositing the Registration deed with them.

In the given situation it seems difficult to sell the property without getting it registered in your name.



Rajendra K Goyal (Expert) 28 April 2020
However, if you default the payment, Bank may proceed under SARFAESI ACT, 2002, the net proceeds from auction may not be sufficient to meet the loan outstanding. Rest can be recovered from you.

Property market is very down, desired price is difficult to get.

Better keep the account regular till situation turn favorable. Proceed to get the property registered in your name if possible / through court orders.
P. Venu (Expert) 28 April 2020
There is nothing in the Law that prevents the registration of the proposed conveyance. The builder cannot take advantage of the earlier transaction being unregistered; Provisions of Section 49 of the Registration Act takes care of this aspect.

As regards to the loan with the bank, the matter needs to be settled through discussions involving the prospective buyer as well.
Raj Kumar Makkad (Expert) 28 April 2020
If none of the builders/promoters are available and building is still in their possession then the conveyance deed is required to be registered from them but if the soceity has taken over the said building as per law then the same shall be a deemed registration if the author is a member of the registered society as held in the following judgment of Hon'ble Allahabad High Court deciding the bunch of the cases on the similar subject:

HIGH COURT OF JUDICATURE AT ALLAHABAD



AFR



Judgment reserved on 05.07.2013

Judgment delivered on 14.11.2013



Civil Misc. Writ Petition No.33826 of 2012

M/s Designarch Infrastructure Pvt. Ltd. & Anr.

v.

Vice Chairman, Ghaziabad Development Authority & Ors.

and

Civil Misc. Writ Petition No.46099 of 2012

Abhinav Jain

v.

State of U.P. & Ors.

and

Civil Misc. Writ Petition No.15782 of 2010

Sun Tower Residents Welfare Association

v.

Ghaziabad Development Authority & Ors.

and

Civil Misc. Writ Petition No.12110 of 2013

Olive County Apartment Owners' Association

v.

State of U.P. & Ors.



Hon. Sunil Ambwani, J.
Hon. Bharat Bhushan, J.
Rajendra K Goyal (Expert) 29 April 2020
The information regarding Society was asked from the Author, information still awaited.

As mentioned by Author, RWA exist and is collecting the maintenance, discuss with them if they can proceed / empowered to get the registration done in view of the above referred judgement.
Ishwar Dutt (Querist) 30 April 2020
Dear All, thanks for your kind replies. This is to share with you that there is no RWA as of now and society is running by Ad Hoc committee. Builder handed over the society to RWA in 2014. I am took the possession of this flat in 2012 and till now living here. I am trying to reach the concerned person in SBI loan department to discuss this matter as there is possibility of extension of lockdown and I dont think I will be able to pay EMIs anymore.
Regards
Raj Kumar Makkad (Expert) 30 April 2020
If the building stands handed over the society, may it be adhoc, the deemed registration shall be in your case. Lockdown stands extended so you need to contact to the banker thereafter.
Rajendra K Goyal (Expert) 30 April 2020
Let the lockdown come to an end, apply to SBI for rescheduling the loan / EMI. Ask them to postpone the EMI for next 6 months. Bank should agree to it, it would be charging interest of the intervening period..
Ishwar Dutt (Querist) 05 May 2020
Dear All,
I came to know that since my builder is behind the bars, a lawyer can get the permission from the court for the registry of my flat. Can anybody advise me if this is possible?

Regards
Guest (Expert) 05 May 2020
Courts will not give the Rights of a Person even the rights of a Prisoner with out his Consent Or Valid Legal requirements.
Guest (Expert) 05 May 2020
In your requirement a valid Power of Attorney from the builder would sort out the issue
Guest (Expert) 05 May 2020
Even a Jail Inmate could make a Power of Attorney. Discuss with your Advocate.
Ishwar Dutt (Querist) 05 May 2020
Thanks Mr. Rajkumar,

Is hiring an advocate for this job is expensive? Just need to know.

Regards
Rajendra K Goyal (Expert) 05 May 2020
You can visit the court premises, can talk to 2-3 lawyers or more regarding case and the fees to be charged.

You can take the help of some relatives / friends, who have been dealing with lawyers, may also talk to lawyer through them.

Generally lawyers have their own scale of charges depending on the case and many other factors. Senior / experienced lawyers may charge high. you can negotiate before entrusting the case.
Rajendra K Goyal (Expert) 05 May 2020
Whether the Builder had empowered / entrusted / authorized any person through Board of Directors resolution to sign the conveyance deeds on behalf of the company, if so, whether such person is also in jail or available, whether still continuing with the company, whether said authority still exist?

Whether any employee is available in the office of the company, what are his views / guidance?
Guest (Expert) 05 May 2020
Fees of Advocate would Vary and no comments over that and it would be your Exclusive Choice.
Raj Kumar Makkad (Expert) 05 May 2020
During the period of lockdown, the courts are also practically closed. So you shall have to wait for any proposed suit to be filed. Fee of lawyer is a personal affair of individual.
Rajendra K Goyal (Expert) 06 May 2020
If you proceed with patience and planning, your property can be sold, it may take time. There are very good Advocates in Faridabad, you have to do some effort. Experts avoid to suggest any name, his fees to be charged.


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