Legal Question in Real Estate Law in India

I saw one bank is doing auction of the property

Actually one borrower has pending of 50 lakhs loan, for which his property is pledge and one more Guarantor has given the guarantee for the borrower,

Now since the loan pending amount is more than the borrower property value, so Bank as taken the Guarantor property also, So Bank wanted to Auction this Guarentar property also on jan-Feb, But Guarantor has taken the stay order in the court, So bank was not able to do the Auction the property on Jan-Feb, But now Court has rejected the stay order, and Allowed bank to do the Auction. And Bank has even put the KVate,

Guarentar property details--

size is 30* 40

Ground floor commercial which is given for rent 10K

first floor 10* 40 office space given for rent 4k

behind this first floor office, one 2 BHK house given to rent -4k

Current market value of the property -- 50Lakhs

Bank reserve price is 40Lakhs

Now My question:

1) Is it safe to buy this property in the bank Auction.

2) I am worried since property belong to Guarantor, Will i be the legal owner if i take the property from the bank auction.

3) Can i take home loan on this property since 1 house is also there.

4) Will bank give home loan for this property

Please Advice me on this Issue

Thanks and regards,

Rahul


Asked on 5/08/13, 11:18 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

09.05.2013

Dear Sir / Madam,

Since all the risks and encumbrances are transferred to the buyer, one should be very careful before purchasing a bank auctioned property. You need to check with banks whether they are willing to sanction home loans for auctioned properties.

Regards,

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Answered on 5/09/13, 2:57 am


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