We are in the process of buying a flat; We will be the 3rd owner. We have already paid the stamp duty and registration fees and registered the flat in our name. We also have the society NOC and other required documents. But during legal search of this property, the bank where we have applied for home loan informed that in 2003 this flat was sold by the builder to a person who also registered this flat in his name before the 1st documented owner. But later the deal did not proceed and he did not buy the flat, However there is no proof that this registration was canceled. We searched at all registration offices but could not find any such document. In this scenario, does this person still hold any rights on this flat? The bank will not disburse the loan unless we provide any document proving the cancelation of this registration, The builder has given in writing that he had sold the flat but later canceled it and returned the money, but there is no mention of cancelation of registration. We dont want to get into any legal disputes later on.Is this property safe to buy?
