I am considering 45 year old flat in co-operative hsg soc. for purchase. these are two 1RK flats clubbed together. One flat is in husband’s name & other is in wife’s name and are third owner of flats. However, only following documents are available for these flats,
* for one flat – original share certificate showing all transfers + latest third sale agreement duly stamp duty paid & registered. Previous chain of sale agreements – ie. allotment letter from chsl to original first owner, sale agreement between first owner & second owner.
* for second flat – duplicate share certificate only showing present owner name + unregistered & non stamp duty paid sale agreement. Previous chain of sale agreements – ie. allotment letter from chsl to original first owner, sale agreement between first owner & second owner.
I wish to avail home loan for this purchase. Kindly advise me on whether I shall proceed with this purchase or not. What precautions/due diligence/what kind of formalities I need to get done/complete before purchase so that it will be a safe purchase for me & I will not face any kind of problem afterwards.
Thanking you.
I C Naik
Bank will ask for Equitable Mortgage (EM) of both the flats. EM is created by physical handover of original title deeds along with duly signed affidavit of such creation of EM.
This means you need to register purchase des of financing it.eds of both the flats. as the original agreement of the last transaction is not available the party selling the flat cannot be identified at the time you go for registration of purchase deed, (in fact it will show name of the previous owner if that was registered. This will not allow you to register the agreement and as such you cannot create EM and bank will not give loan. So answer is you cannot buy the second flat as you do not have other means.
