Hi, We have 6 friends came together and purchased a land of 3000 sft in Solapur and constructing an apartment of 6 flats (each of us will get one flat). We have got all the required approvals for the construction as per municipal rules. We have created a "Deed of Declaration" in which we allocated the flat # with details of carpet area etc and the same is registered and updated the 7/12 extract on individual name (We have not paid any stamp duty here).We have constructed till plinth level with our own funds. Out of 6 only 4 of us are applying for bank loan (2 are managing with their own funds as they are not eligible for bank loan).
The problem is when we applied for bank loan , 3 banks got rejected our loan on the ground that the individual flat cannot be mortgaged on individual name. They are saying currently we are co-owners and not the having individual title on flat allocated in the deed of declaration.
We have consulted 4 lawyers so far but all are giving different opinion. Some says there should not be any problem to avail bank loan on individual name as title is very clear on individual name. Some says we need to get registered with "Maharashtra apartment ownership act" and need to pay the stamp duty (which comes around 1 lac for each) in order get title on individual name.
My quetion-
1. Is registered deed of declaration and 7/12 extract are not sufficient to claim a clear title on individual name?
2. What happens if we do not registered under "Maharashtra apartment ownership act" apart from not eligible for bank loan.
Would really apprecaite all your help.
