i bought a 3BHK underconstruction flat from a builder. For this i had taken loan from bank. The builder has handed over the posession and i got it registered in my name.
Later i came to know that the flat had already been sold by the builder to another buyer before it was sold to me.
That buyer also had taken loan from some bank but he defaulted and his bank is seeking recovery of the loan. He had submitted builder buyer agreement as security.
What implications does it have for me?
Am i legal owner of the flat given that its posession was handed over to me and its sales deed has been executed in my favor?
Can the previous buyer's bank initiate auction of my flat to recover its loan?
i talked to builder, as per him, he will settle the loan taken by the first buyer and will sattisfy with NOC from that bank.
Please suggest the actions that i should initiate/take in order to safe guard my investment.