I want to buy a flat in resale from a seller A. There is a story behind the property that A is possessing.
A had some land in this area. A has given this land to a builder to construct a building. The builder has constructed the building and allotted 4 flats to Mr. A, with a notarized agreement on 100 Rs stamp paper in 2010, but there is no where it is mentioned that the builder is giving the flats to Mr. A for the land he has got from Mr. A.
Now, Mr. A did not register the flats to save stamp duty fees etc. Mr. does not have the share certificate as well and society is not issuing the Share certificate as the property is not registered.
I want to buy this flat with home loan. Bank is asking me to for the original share certificate along with registered agreement between Mr. A and builder and one indemnity bond from me, stating that any loss happened in the transaction will be boned by me.
Mr. A is suggesting for getting the agreement registered between him and me and later getting the Share certificate issues to my name.
Mr. A is claiming that he has the following documents.
1) Clear title certificate of the property
2) Property tax receipts which are on builder’s name.
3) Copy of sanctioned plan.
4) Copy of NA certificate.
5) NOC from society
6) Allotment letter from society
Request you to please suggest if there can be any issue to the bank in providing me loan and if there could be any problem in the future.
Thanks in advance.