Nirav Vakharia (Owner) 09 March 2012

Mortgage on unregistered property_house

Dear All

I had one quick question regarding cration of mortgage by Banks. We are availing a funded/non funded facility from bank against which we have provided immovable property_house as collateral. The property was purchased in 1991, on which stamp duty is paid, however since registration was not prevelant at that time registration was not done. We had obatined housing loan from HDFC in 1991 which was repaid around 2000.

How the current bank states that it can not create the mortage since the documents are not registered. The property is in now names in society records since 1991. Can you suggest whats the way out. We are ready to register the proeprty now also.

Thanks

Nirav

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3 Replies

khalid masood (partner.) 09 March 2012

With the advent of supreme court ruling that title gets conferred only through registered conveyance you are facing this problem. In case of HDFC loan at that time this rule was not prevalent. Therefore you did not face any problem. What u have do now is approch the society and get the registered conveyance done in ur favour. I dont think the society will have any problem in issuing conveyance in ur favour. But society would insist that u pay all the necessary dues before registration.

Nirav Vakharia (Owner) 09 March 2012

Thank you for your prompt response.

With respect to your reply can you please throw some light on "What u have do now is approch the society and get the registered conveyance done in ur favour".

How can we get registered conveyance in our favour from Society? There is no outstanding from our side to society. Further, the society is yet to receive the conveyance from builder.

Best regards,

khalid masood (partner.) 09 March 2012

In law it is generally said that a person can pass perfect title to the purchaser only if he has one. In ur case only this rule can be applied . Why the society is yet to get the conveyance in its favour. Has the society flouted any rules as regarding the payment terms or it is involved in legal issues with the builder.Unless the society resolves its problems with builder it cannot get conveyance from builder. you can get clear and marketable title only when the society gets its title from the builder.