I had booked an apartment in Bangalore which is under construction by paying 15% of the sale consideration. I registered the Sale Agreement and the Construction Agreement with the Builder and the same was provided to the Banker (LIC Housing) for applying Loan. The banker had taken over the original Sale Agreement + the Construction agreement along with other documents from the builder for consideration to my loan application. Loan was sanctioned and a month later in Jun 12 the 1st check was also released to the builder (no signature was requested from my end in regards to this check being prepared) which was for 40% of the loan amount. Now all of a sudden I get a call from the banker asking me to get the property registered to my name (SALE DEED REGISTRATION).
I am not sure why is this being requested now as the general rule is that I cannot register the property in my name unless the construction is completed and possession is taken by me – correct? I need some expert advice for my situation and hope you can help me out with a legal suggestion. Also help answer a few questions I have in this regard:
1. How can I register an apartment which is still under construction?
2. If I register it then how will the Builder and Banker responsibility ease?
3. Will my position as the buyer be put in some kind of risk as I can only imagine that the banker releases the full amount to the builder and the construction and handover of constructed property ultimately is delayed and possibility of similar risk. How can I cover my risk in such situations?
3. What is the difference between Registration and Possession?
Please guide me with your expertise.