i'm in the process to buy a plot in a layout with 400+ plots
i'm financing 45% of the plot cost and 55% is from bank loan (Bank A)
builder informed me that 108 plots (including my plot) in the layout is pledged with Bank B and hence original deeds are with Bank B
Bank B gave a NOC to Bank A and bank loan is approved
NOC was addressed to Bank A manager and requesting them to release the required loan without specifying any amount
my concern now is, what happens if builder defaults on the loan
Builder has given an indemnity clause in the sale deed, but the risk scenario i'm evaluating is "what happens when the builder defaults on the loan"
Since Bank B has given NOC to Bank A, i assume it allows Bank A to recover the loan amount
But how to safeguard my 45%?