Neville Krishnaswamy (Analyst) 10 February 2015

Society dues

I want to apply for a loan against my flat which is located in Andheri w, Mumbai. However there are certain roadblocks which I want to share with your team of professionals so that we have a clear understanding of how to proceed next if at all.

Overview:

Property is in my grandmothers name. Society has been formed, conveyance deed has not been executed. Society has not made us members of the flats. Since 1987, we have not paid the maintenance charges as the bills are issued in the builders name. The total outstanding is 1700000 out of which 6 lakhs is the principal amount and rest is interest. I want to pay this off, however I cannot avail of a loan against property because I do not have the share certificate or any legal document stating that the flat is ours. The only document we have is the agreement between the builder and my mother for our flat. The society says that only after we pay will they make us members and give us the other necessary documents pertaining to our flat ownership. I want to take a loan against our flat to pay off the dues but the banks will not entertain us due to lack of share certificate. I need the bank to meet up with the members of the society with me present to discuss the possibility of the loan and the clearance of the documents thereof.

1) Flat is still in the builders name as per society’s records.

2) I have an agreement between my mother and the builder. The share certificate is in the society's possession.

3) My mother has passed away and left behind a registered will which grants the ownership of the flat to myself and my younger brother.

4) I want to take the loan to pay the society dues that has piled up due to non-payment of maintenance dues.

5) My brother and I are on the same page.

6) The society is willing to transfer the flat in my name provided a bank/financial institution guarantees to provide me with a loan to pay them off.

7) If the bank/financial institution contact person is available, I can set up a meeting with the members of the society to facilitate discussions.

Please revert back after reviewing the situation at hand and how to proceed further. Thanks for your valuable time and inputs.

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3 Replies

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 12 February 2015

You have to obtain a probate on the will before you can do anything further. Both the Society and the Bank will require the probate before you can proceed further.

Neville Krishnaswamy (Analyst) 12 February 2015

Correct me if I am wrong but Catholic people do not need a probate, unless there is a dispute? In my case there is no dispute.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 15 February 2015

You get a letter from the Society mentioning details of the flat and the share certificate as it would done in the case of sale deed, the total amount payable by you and that the property will be transferred to you if you pay the amount and that they have no objection if you hypothecate the documents to an approved Bank for the purpose of obtaining the loan. You then go to the bank show the letter and request for the loan. Then arrange for a meeting at the Society Office or at the Bank, preferably at the latter place. The authorized representative of the Society should have all the transfer documents ready. At the meeting the Bank will give cheque drawn in favour of the Society directly to the Society. The Society representative will endorse the documents in your name and hand them over direct to the Bank. The above is the normal procedure followed when one purchases immovable property with a bank loan.