kata a (programmer) 02 January 2012

Land purchase under bank loan

hi,

i am planning to buy a 500 yards of land in hyderabad near suraram. i found a lay out which as per the owner is approved by HUDA. However, he seems to have taken loan on the entire property of 15 acres of which I am buying a small piece. What precautions must I take and what documents should i ask for.

Is there any chance that if I buy that 500 yards, I pay for that land, can the bank that gave the loan for the entire land, can it claim for my piece of land if the owner defaults. What documents should I look for.

What is legal opinion. who should give? Can I start construction on such property immediately or will the bank object to it. I am also planning to take loan from other bank for the purchase of land.

How to make sure that land is free of disputes and aslo how to avoid litigations with the bank. Can the bank give clearnace certificate/no objection letter? should I ask the owner to for a oath of undertaking to say that he should compensate in full if there is any dispute on the land?

thanks

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5 Replies

adv. rajeev ( rajoo ) (practicing advocate) 02 January 2012

Including 500 yards entire property is mortgaged, so piece of land cannot be made free from the encumbrance.

bhagwat patil (Property due diligence 9422773303) 05 January 2012

The property goes along with charge.bank has every right to sue for property whoever the owner.

kata a (programmer) 05 January 2012

Thank you very much for your kind reply. The owner is saying that the loan is taken after the land is devided into different plots and got the Huda approval. So what he says is that he will clear the encumberance on the piece of land I am buying and get no objection certificate. He says it is same as we buying the flats in a apartment building. Can it be so? Please advise? How to make sure that my piece of land is not under any loan?