I am planning to buy a bank auction property from an agent. What precautions should I take?
- Ankur Dutta Before you bid for any such property, please ensure that the bank has actually taken over possession of the property. It is also advisable to find out credentials of the person whose property the bank is selling so as to ensure that you do not land in any problem after you have purchased the property. In case the property is unusually cheap, there is very high probability of there being more legal issues. These properties are sold on “as is where is” basis and you should find out about society or other statutory overdues on the property.
I am planning to buy a house in Ghaziabad along with my brotherin-law who has a central government job in Allahabad. I work in the private sector. We plan to take home loans separately from two different banks and become coowners of a property. Is it possible to do this?
- Mohit Agarwal Normally lenders allow only immediate kin like spouse, parents or son as co-borrowers of the loan; some lenders allow brothers as well. It is unlikely that the lender will allow your brother-in-law to join you as a co-owner. It is not possible to get two separate home loans on the security of the same property. I have a plot in Kanpur in my wife’s name. She is a housewife. I want to take a home loan for the plot as I want to construct a house on it. Is it possible to take the home loan under my name? If not then what is the procedure to get the plot transferred under my name and then apply for a home loan. The plot is allotted by Kanpur Development Authority and not yet registered.
- Rajiv Malhotra Yes, you can apply for construction of house on the plot owned by your wife. However, as your wife is the owner of the plot, she will have to join you as borrower of the loan and you can be a co-borrower of the loan. The loan amount eligibility will be calculated on the basis of your income as she is a housewife. You can avail a construction loan for constructing a dwelling unit on the piece of land already owned by your wife. You will have to submit an estimate of the total cost of construction, duly certified by an architect/civil engineer.
The construction loan will be released in parts, based on the progress of construction. However, you will have to bring in your contribution in full before the lender disburses the loan. The lender may also insist on sending its own technical personnel to assess the progress of construction or may decide to rely on certificates/photographs submitted by you.
Some lenders are not comfortable funding self-constructed properties. You can try approaching some popular public and private banks for the loan. You will not be eligible for deduction of the principal repayment portion as well as interest payable on the home loan unless you own or co-own the plot. Harsh Roongta is CEO, Apna Paisa. He can be reached at email@example.com