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what if I ask bank to disburse 60% amount instead of 80% of home loan
07-Aug-2023 (In Property Law)
I have a query relating to Registration. The property happens to be underconstruction. I have paid the 20% downpayment and the remaining 80% bring funded by bank loan. I have got property registered as required by bank before discussing loan. Now in such a case if I ask bank to disburse say only 60% amount instead of 80% what builder is asking and keep the rest 40% pending until possession what action can builder take? Does builder legally have the ownership of the apartment? Can builder cancel my apartment? What are the repercussions of such a action on the buyer?
Hi
the builder is responsible for
a) Registration &
b) Handing over of possession along with Occupancy certificate.
Registration without possession is useless. So till such time the possession is handed over by the builder, he cannot abdicate his responsibility.
So technically, if the builder has registered the flat along with Undivided share of land, he cannot unilaterally cancel the registered sale deed.
however if the builder has registered only the undivided share of land and simultaneously entered in to an agreement to construct, then the builder can cancel the construction agreement.
So the best option will be to negotiate with the builder and reschedule the payment to the builder as desired by you and have the same documented on a 100 Rupees stamp paper.
Hope this helps
the builder is responsible for
a) Registration &
b) Handing over of possession along with Occupancy certificate.
Registration without possession is useless. So till such time the possession is handed over by the builder, he cannot abdicate his responsibility.
So technically, if the builder has registered the flat along with Undivided share of land, he cannot unilaterally cancel the registered sale deed.
however if the builder has registered only the undivided share of land and simultaneously entered in to an agreement to construct, then the builder can cancel the construction agreement.
So the best option will be to negotiate with the builder and reschedule the payment to the builder as desired by you and have the same documented on a 100 Rupees stamp paper.
Hope this helps
Helpful?
10+
10+
Adv. Rajagopalan
Hyderabad | 500+ Answers
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Write a letter to the bank to disburse 60% of loan amount now and to release the balance at a later date. Builder is an owner until the process of registered conveyance in your favor is complete. Once you have allotment letter/agreement of sale, the builder cannot cancel it on his own. Your rights are protected. Consult us for elaborate details.
Helpful?
24+
24+
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