HT Estates - - HTESTATES - Harsh Roongta

What is the process to re­sell a flat? Cur­rently I have bought an un­der­con­struc­tion flat and have taken a home loan from a private bank.

— Mukul Joshi Yes, you can sell the apart­ment, but you will need the lender’s con­sent. This con­sent let­ter will typ­i­cally pro­vide the amount, on pay­ment of which the out­stand­ing loan li­a­bil­ity will stand dis­charged.

This amount in­cludes the pre­pay­ment charge, if any, charge­able by your lender and should list the doc­u­ments held by them that will be re­leased on pay­ment of the stated amount. This amount men­tioned in the cer­tifi­cate is typ­i­cally cal­cu­lated as on a fu­ture date, to en­able time for you to ar­range the pay­ment from the buyer.

After the pay­ment of all dues, the lender will re­turn your orig­i­nal doc­u­ments and is­suea loan clo­sure let­ter in­di­cat­ing that there is no out­stand­ing amount to be paid. Please make sure you get the no dues cer­tifi­cate to ob­vi­ate any issues in the fu­ture. The buyer can make pay­ment of the bal­ance sum on re­ceipt of the orig­i­nal doc­u­ments from the bank.

In your case, since the flat is still under con­struc­tion you may also re­quire a NOC from the builder /developer for which he may charge you a fee or may not even give the NOC as it af­fects his own sale of flats in the same build­ing.

I am look­ing for a home loan. Are there any banks which give a mora- to­rium pe­riod or an op­tion such that the EMI starts after a year of the loan dis­burse­ment?

—Renu Dik­shit To the best of our knowl­edge, there isn’t any bank which pro­vides mora­to­rium for home loans. Most len­ders of­fer con­struc­tion- linked loan plans wherein you pay the sim­ple in­ter­est for the pe­riod of con­struc­tion (also known as pre EMI in­ter­est) and the EMI starts upon com­ple­tion of con­struc­tion. Len­ders are choosy about which under-con­struc­tion pro­ject they will fund. So make sure that the pro­ject you se­lect is ap­proved by the lender of your choice. Of course some builders of­fer you schemes where they will bear this pre EMI in­ter­est amount dur­ing the con­struc­tion pe­riod. This is a sep­a­rate ar­range­ment be­tween you and the builder and if the builder doesn’t pay the pre EMI in­ter­est to the bank you will have to still pay the same to the bank.

If a bank ap­proves a prop­erty, what does this mean legally? Can we trust that prop­erty and say that this prop­erty has no le­gal cases?

—Swati Singh When a bank has ap­proved a prop­erty, it means that the bank is prima fa­cie sat­is­fied about the le­gal ti­tle of the prop­erty and that the con­struc­tion of the prop­erty has been car­ried out in com­pli­ance with the lo­cal reg­u­la­tions and ap­provals. How­ever, the ul­ti­mately li­a­bil­ity for the ti­tle shall re­main with the buyer and not the bank. It is for the pur­pose of quick ap­proval of the loans that builders seek pre-ap­proval of banks for their projects. So, whilst the bank’s ap­proval is prima fa­cie a good in­di­ca­tor, it is in your in­ter­est to carry out your own due dili­gence.

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