HT Estates - - HTESTATES - Harsh Roongta

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 ceo@ap­na­

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