Legal Question in Real Estate Law in India

I have paid booking amount for a flat. The builder should have provided a non-encumberance certificate and NOC for loan processing. But builder is not providing both as he has now mortgaged the property with a private bank to get loan. Please suggest remedial meaures.


Asked on 3/29/14, 9:38 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

30.03.2014

Dear Sir / Madam,

If the Developer lacks a sound financial backing to complete the project and the Builder has mortgaged the property to avail of funds for completing the construction, you will have to take a call on whether you wish to continue in such a project, especially if you are keen to avail of an housing loan for purchase of a flat in the project. I say it because you may face hurdles in securing a housing loan in this existing project as the bank may not finance you by way of a loan.

Regards,

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Answered on 3/30/14, 3:35 am


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