NAVEEN ARICHWAL (Senior Resident Emergency medicine) 23 February 2014

Mortgaged group housing project-what allottes should do.

A group Housing project of area 10.5 acres has been given part Occupation Certificate by DGTCP,Haryana,

But the Builder has already mortgaged the whole project to a Non banking Financial institution and a nationalized Bank.

In such a case can the Builder sell, do registration of units in that Group Housing project to allottees .

Does builder need to get Nil Encumbrance certificates from these Financial institution before even selling the units in the Project.

Pls suggest.

Thanks

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4 Replies

Dr J C Vashista (Advocate) 24 February 2014

Since the project has been financed/motrgaged it is necessary/compulsory to get it endorsed in Sale Deed .

NAVEEN ARICHWAL (Senior Resident Emergency medicine) 25 February 2014

Is it not enough to Get NOC/Nil Encumbrance . I have taken a Home loan on this Flat from HDFC Ltd. for a period of 20yrs. My Loan has been sanctioned. SBI is also providing Home Loan for the same project. DGTCP has given Occupation Certificate,Many Buyers have already done the registration and few are already living there.

The Builder has promised to Give the Nil encumbrance certificate for my unit, but still i dont believe because of tactics of these builders is to confuse the Customer.

Anyway i will ask him to endorse the sale deed when it is done with the NBFC too. Thanks

Attached File : 532369716 title deeds of faridabad land mortgaged anddeposited in 2011.pdf downloaded: 92 times

T. Kalaiselvan, Advocate (Advocate) 26 February 2014

Until the loan amount is not cleared, there is no free encumbrance on it, i.e., it is always better to get it endorsed in the sale deed before things are getting out of hand.