I am considering buying an unregistered flat in a big apartment complex from a well known builder in Bangalore. This complex has been approved for home loan sanction by most Public Sector banks including SBI. So no worries as far as permissions and sanctions for the land on which the complex is sitting.
The seller's broker told me that the owners (husband/wife) have not yet registered the property. So when I buy it & register it i have to pay the money to the seller and before that i have do enter in to a MOU.
Another concern is - are the husband/wife really the owners if the flat is unregistered? Is the builder still not the owner?
I also need clarity on how the flat can remain unregistered. Does this mean that the husband/wife still owe money to the builder?
Also, property documents like Encumberance Certificate (EC) will probably not have data on the husband/wife's transactions on the property since the municipal office will have only the builders information.
I plan on consulting a reeal estate lawyer (but don't know one directly). I also want to take a small home loan just to get a second opinion.
I would appreciate any pointers to information and tips. I don't want to save 5 lakhs now and lose the flat later.
This is my first transaction in India. I moved back to Bangalore 6 months back after 12 years in the US. I am still figuring out the system here.
Thanks.
