Arun Developers, Pune

Arun Park, Opp. Aditya Birla Hospital,
Chinchwad, Pune - 411033

How to buy a property on which home loan is pending

How to buy a property on which home loan is pendingA buyer needs to procure no-dues and other approvals from banks and government authorities before buying a property on which there is an existing home loan.How to buy a property on which home loan is pendingNEW DELHI: Buying a resale property appears much simpler than buying an under-construction unit. However, there are some crucial checks and documents requirements before you enter into a legal contract. Every property transaction involves two key components - one is the physical verification of a property and the second is its legal due diligence. Sometimes, the second part is more important than the first as it ensures your investment is safe and without any legal dispute.If you are planning to buy a resale property from a seller who has already taken a home loan on the property, then it is important for you to perform certain due diligence. Firstly, check whether the existing owner has any pending home loan, electricity and water charges or other dues on the property. You also need to check whether the property is owned by a single owner or it is shared. One should also check whether the property is leasehold or freehold. If the property is leasehold, then the seller needs NOC from the government authority.You can either choose to ask the existing buyer to clear the home loan or if you are also planning to take loan to buy the property then you can apply for transfer of seller’s loan to your name. The bank will take your KYC and check your eligibility and then check the seller’s file and transfer the loan to your name.Deepak Chowdhury, partner, Induslaw, explains, “The buyer must insist on a copy of all the title documents of the property for conducting a title due diligence to identify the risks, if any, on the property. The buyer will also require the title documents if he intends to obtain a loan for financing the acquisition of the property. The buyer should also request the seller to obtain a statement of loan outstanding (principal and interest (including penalty interest if any)) due from the bank wherein the home loan is pending, and a confirmation of the property documents mortgaged with the bank.”Documents to checkThe buyer has to verify all title documents in relation to the property:(i) Deed of transfer in favour of seller and the property tax certificate issued by the concerned municipality in the name of the seller. In case the property is a flat/apartment situated in a high-rise building, check if the undivided share of the land over which the building has been transferred in favour of the seller;(ii) Title documents for the past 30 years so that the title of the vendor/builder of the property can be established. Also procure a certificate of encumbrance from the concerned sub-registrar to assess all the previous title transfers and encumbrances on the property.(iii) Sanction Layout, Building Permit, Occupancy Certificate, Zoning Regulation, Fire NOC (in case of high-rise building), permission for lifts installed at the building wherein the property is located.(iv) No objection certificate for transfer of ownership and No-dues certificate from the Cooperative Housing Society/RWA of the building or the builder if he maintains the society.(iv) Municipal taxes pending against the property. It would be advisable to also check the dues against the property that may be pending towards the electricity and the water departments. Also, obtain receipts to verify the tax paid by the present owner.(v) An independent search needs to be conducted on show-cause/demand notices pending against the property or the building wherein the property is located.(vi) Check if any litigation is pending against the property or the building wherein the property is located is a subject matter of a litigation against the builder/developer.Is it safe to buy a property mortgaged to a bank?Unless the property is subject to any litigation or exercise of mortgage rights by the bank, it is safe to buy a resale property pending mortgage. However, the buyer needs to insist on the closure of loan and a no dues certificate from the bank prior to purchasing the property. In case the buyer intends to take a loan for acquiring the property it is mandatory that the buyer moves a proposal to the bank from which it intends to avail loan and get a legal and technical clearance as well as obtain a sanction letter from the bank prior to the transaction.Nikhil Varma, founding partner, MVAC-Advocates, Solicitors and Consultant, says, "The procedure to purchase a mortgaged property is not complex and in order to purchase such a property, the purchaser may either close the existing loan, or get a new loan from the same bank to close the existing loan or get a loan from another bank. It is imperative that the purchaser ensures that the seller provides them with the no-dues and no-objection certificates both from the bank and builder/RWA. There are instances wherein the agreement for such a transaction is a tripartite agreement making sure that the bank is aware of such sale and an active party to the same."Getting all the relevant documents is very important as then you can get bank approvals easily and also be able to register your property without any issue.“Buying a house (be it a flat or an independent house) with an existing bank loan requires patience and time. If you are borrowing from a different bank, then one bank can pay to the other bank and take over the existing loan. However, if the bank is the same then internal loan transfer takes place, and you become the new owner after registering the property,” adds Aditya Chopra, managing partner, Victoriam Legalis - Advocates & Solicitors.Make a checklist of the documents you have and then create a list of documents you require from the existing sellers before buying a bank mortgaged property. Pay only the token/booking amount when you have verified the owner, the property and have made sure it is good to buy.Follow and connect with us on Twitter, Facebook, Linkedin
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land and encroachments after merger, PMRDA gets deposits and staff

Pune: PCMC gets major portion of land and encroachments after merger, PMRDA gets deposits and staffRuling BJP in Pimpri-Chinchwad has opposed the move to transfer undeveloped reserved land to PCMC and said Maharashtra government took a unilateral decision on the merger.Manoj Dattatrye MoreWith the Maharashtra state government notifying the merger of Pimpri-Chinchwad Newtownship Development Authority (PCNTDA) with Pimpri-Chinchwad Municipal Corporation (PCMC) and Pune Metropolitan Region Development Authority (PMRDA), PCNTDA or Pradhikaran will now cease to exist, officials said.“With the government making gazette notification of merger of PCNTDA or Pradhikaran area with PCMC and PMRDA, PCNTDA has now become history,” said PCNTDA CEO Bansi Gawli.As per the notification, the PCMC will get all leased land, all land reserved for public purposes and all encroached land. The ruling BJP in Pimpri-Chinchwad has opposed the move to transfer undeveloped reserved land to PCMC.On the other hand, the PMRDA will get PCNTDA’s office, commercial complex, residential complex, fixed deposits and other investments. The PCMC will remain the special planning authority of all PCNTDA areas. “This means building construction permission and powers for approving TDR-FSI will rest with PCMC,” officials said.Speaking to The Indian Express, Gawli said, “Of the 1,875 hectare of land with PCNTDA, the PCMC will get at least 1,300 hectares of land while PMRDA will get around 375 hectares. This is our initial estimate. The entire process of distribution of land will take around 5-6 months.”Also Read |Merger with PCMC, PMRDA: PCNTDA ceases to exist; PCMC gets major portion of land, PMRDA gets deposits, staffGawli said all the land in the Pradhikaran area had been leased out to the public. “The leased land is around 1,000 hectares which will go to PCMC. Besides, there is 240-hectare land where encroachments have come up. These encroachments will now be on PCMC’s lookout. And there is land reserved for public purposes. It will go to PCMC. In fact, vast areas of developed land are already with PCMC,” he said.– Stay updated with the latest Pune news. Follow Express Pune on Twitter here and on Facebook here. You can also join our Express Pune Telegram channel here.Gawli said all PCNTDA employees will be transferred to PMRDA. “We have permanent staff strength of around 50. And around 100 temporary as well as on deputation staff. The permanent staff will be transferred to PMRDA. As for the rest, the PMRDA will take the call,” he said.“We don’t have any loan. But the liabilities like bill payment to contractors will be taken over by PMRDA. The total deposits of Rs 150 crore will go to PMRDA,” he said.While PCMC will be the special planning authority in many sectors of the Pradhikaran area, PMRDA will get only a small amount of land to look after. “PMRDA will have jurisdiction over only four sectors. This means the building permission, TDR and FSI will be decided by PMRDA in these four sectors. On the other hand, PCMC will have jurisdiction or will be the planning authority in the remaining 38 sectors. Similarly, PCMC will have jurisdiction over three sub-district centres or commercial centres while PMRDA will look after a solitary centre,” Gawli said.The BJP, however, is not happy with the decision to transfer land reserved for public purposes to PCMC. “They should develop the land and then transfer it to PCMC. Otherwise, for developing the land, PCMC will have to spend a lot of money on providing water, drainage, electricity and other amenities,” said BJP MLA Laxman Jagtap.BJP state secretary Amit Gorkhe said, “Pradhikaran was set up for providing affordable housing for the working class. Several acres of land was taken from farmers. This developed land will now go to the PMRDA area. This is an injustice to the farmers.”Gorkhe said the state government did not even take the public representatives into confidence on the merger. “This is a unilateral decision. We are against it,” he said.Jagtap said the state government has not yet announced what it proposes to do with the land of hundreds of farmers acquired by PCNTDA. “For decades, they have been awaiting compensation,” he said.Reacting to this, Gawli said, “As per the notification, the compensation in terms of 12.5 per cent development to farmers will have to be decided by the authority in which their land exists. For instance, if the land is in the possession of PCMC, then it will have to give compensation to the farmer.”
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India expected to grow at 8.3%, says World Bank

India expected to grow at 8.3%, says World BankThe growth rate forecasted for India for 2021-22, the World Bank is an upward revision from its January forecast of 5.4%.Sriram LakshmanIndia’s economy is expected to grow at 8.3% for Fiscal Year 2021-22 as per the World Bank’s latest projections. This rate, however, masked the damage caused by the “enormous” second wave of COVID-19, the Bank said in its June 2021 Global Economic Prospects released on Tuesday. The world economy is expected to expand 5.6% , the fastest post-recession growth rate in eighty years, but global output will still be 2% below pre-pandemic projections by year-end.The growth rate forecasted for India for 2021-22, the World Bank is an upward revision from its January forecast of 5.4%. However this revision “masks significant expected economic damage from an enormous second COVID-19 wave and localized mobility restrictions since March 2021,” the report says, adding that activity will follow the same but less pronounced collapse and recovery seen in last year’s COVID wave.“Activity will benefit from policy support, including higher spending on infrastructure, rural development, and health, and a stronger-than[1]expected recovery in services and manufacturing,” the report says.For FY 2022-23 growth is expected to slow to 7.5% as a result of the pandemic’s lingering effects on the balance sheets of households, companies and banks and possibly low levels of consumer confidence and heightened uncertainty around job and incomes.For India the massive COVID-19 wave had undermined the sharper than expected rebound in activity for the second half of FY 2020-21 – particularly in services, according to the Bank. Since March, foot traffic around retail spaces has slowed to below a third of what it was in pre-pandemic times.For the world as a whole, losses to per capita income will not be reversed by 2022 for some two-thirds of emerging market and developing economies, the Bank said. Low income countries that have lagged in vaccinations have witnessed a reversal in poverty reduction, with the pandemic exacerbating insecurity and other long-standing challenges.“While there are welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world,” World Bank Group President David Malpass said in a press statement.“Globally coordinated efforts are essential to accelerate vaccine distribution and debt relief, particularly for low-income countries. As the health crisis eases, policymakers will need to address the pandemic’s lasting effects and take steps to spur green, resilient, and inclusive growth while safeguarding macroeconomic stability,” he said.
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