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Vivek   03 January 2020

Buy an endorsed flat.

Hi, I am planning to a purchase aflat which is being endorsed by the builder. 3 years back some one (Present owner) bought this property from builder but registry was not done. Now I am willing to buy this property. According to the builder, full payment will be made to current owner name. Here, I am the buyer. I am in contact of builder who is endorsing this flat. I don't have any connect with present owner of the flat. He will be available as witness at the time of registry. Recently got to know - SBI is not providing home loans for endorsed flat. (Is it true ?) Please suggest if I should go ahead with this deal? Thanks Vivek 9672184992


 9 Replies

SHIRISH PAWAR, 7738990900 (Advocate)     03 January 2020

Dear sir,

If you have any doubt about the ownership of fkat avoid buying such flat.


Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     03 January 2020

1. This is what is typically known as "investors flat", wherein builder takes discounted money from the Investor (Flat Owner) but does not register it and possession remains with Builder and Builder can sell the same on behalf of the Investor (Flat Owner).

2. You can buy the Flat PROVIDED the Sale Agreement is signed BOTH by Builder & Investor (Flat Owner) as "Confirming & Consenting parties".  This way it will be clear Title for all futuristic purposes.  You will also have to take a "indemnity bond" by Builder & the Investor (Flat Owner). to indemnify you against all future legal litigations /losses etc....

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

1 Like

G.L.N. Prasad (Retired employee.)     03 January 2020

In case of doubtful transaction either you can avoid such purchase or if the proposal is beneficial engaging a professional to protect your interest in drafting sale deed by getting signature of builder and that buyer also in sale deed.

Vivek   03 January 2020

Hi, thanks for your suggestions and time. Here endorsement agreement is being signed by buyer, seller and builder. Agreement to sell is being signed between buyer and seller Agreement to buy is being signed by me (buyer). At the time of registry, first party (seller) will be available as witness. Please let me know if any more agreement needs to be signed. The point for which I am concerned is why SBI is not providing loan for this flat. Please let me know if any suggestions.

G.L.N. Prasad (Retired employee.)     03 January 2020

This is your fresh addition to query: "The point for which I am concerned is why SBI is not providing loan for this flat. Please let me know if any suggestions.

Any bank provides opinion on the basis of Legal opinion provided by their Advocate in their panel, and any advocate looks into many things in link document and the enjoyment and possession rights as per Registry and whether the seller of land is having a good and bonafide title.

Members in the forum are not competent to provide an opinion without looking into such reasons stated by SBI counsel and documents.

1 Like

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     03 January 2020

1.  SBI is NOT the only Bank providing Housing Loans.  Try another Bank, FI, NBFC, Coop. Bank.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Dr J C Vashista (Advocate)     05 January 2020

Buyer beware before finalisation of purchase transaction  it is advisable to consult a local prudent lawyer for better appreciation of fact/documents and guidance/proceeding.

T. Kalaiselvan, Advocate (Advocate)     16 January 2020

The act of a person who is a holder of a negotiable instrument in signing his or her name on the back of that instrument, thereby transferring title or ownership is an endorsement. .

.. An endorsement provides a transfer of the property to that other individual or legal entity.

 the act of the owner or payee signing his/her name to the back of a check, bill of exchange, or other negotiable instrument so as to make it payable to another or cashable by any person. An endorsement may be made after a specific direction ("pay to Dolly Madison" or "for deposit only"), called a qualified endorsement, or with no qualifying language, thereby making it payable to the holder, called a blank endorsement. There are also other forms of endorsement which may give credit or restrict the use of the check. 2) the act of pledging or committing support to a program, proposal, or candidate.


To grant home loan or not is the discretion of bank especially if the bank finds that there can be any obstacle to the title of the proeprty, the bank may withdraw its decision to grant loan.

Always remember that unless and until you do not get your  Sale agreement or Sale deed registered with the Sub-Registrar under the provisions of Indian Registration Act, 1908 the title of property can not pass in your favour.  They are misleading you. You can not become the owner of that property under the eyes of law. BEWARE of these builders as well as sellers.  They are evasing heaving stamp duty by violating various provisions of law like Indian Registration Act as well as Indian Stamp Act.


Vivek   16 January 2020

I have received agreement to sell signed by him and shortly we will get the property registered with sub registrar. Additionally the present owner will sign as a witness in the sale deed. If you still see any issue, Plse let me know.

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