Vikram is on cloud nine that he has brought a property with a company and soon he is going to have his dream home built. But out of the blue, Vikram’s
Vikram is on cloud nine that he has brought a property with a company and soon he is going to have his dream home built. But out of the blue, Vikram’s friend informs him of the loophole – his property builder/company is facing some troubles as the property is mortgaged with a bank. Since the construction company has not been able to pay on time, Vikram’s and his fellow investors or buyers are facing the same heartbreak – their project or home construction and completion has been delayed and has come to a standstill.
Not just Vikram, there are many buyers out there who have been facing the curse of delayed home projects due to lack of proper knowledge in verifying the construction company’s or builder’s financial doings.
So, it is a buyer’s thorough responsibility to verify the financial health of his property. For this, experts from the financial sector and real estate have poured in their pro tips. Do read them.
How to check if the property is mortgaged?
Log on to the website of the Central Registry of Securitisation Asset Reconstruction and Security Interest of India – CERSAI – which was initiated by the finance ministry to maintain the documents and records of every property that has been purchased over loans from banks or other housing finance companies.
Know the company name first
It is your minimal duty to have the basic information related not just to your property’s length and width but also the company’s profile. Get the name, builder associated with the project so that you can check the basic info online with some ease.
How to know the detailed report of a project or property?
To know the complete details of the property you have invested in or bought for yourself, you need to have the detailed information of the agent, builder or the land details, etc., To achieve so, RERA – Real Estate Regulatory Authority – portals come to your rescue. By logging in to these portals one can access the builder, agent, engineer, associated bank or finance company’s name, land details of the project, and other related information.
In most cases, where buyers have limited knowledge of certain document-related issues or they might be unable to access the online information. In such cases, the buyer can take the support of a lawyer who can do the work both online and offline.
Verify Documents through MCA
The website of the Ministry of Corporate Affairs – MCA – publicly displays the data related to a particular construction project where the related documents are uploaded by the company. Through this, buyers can come to a conclusion whether his or her property is mortgaged with a bank or not.
It is not just enough to splurge on properties, it is also a buyer’s primary duty to verify and reverify by himself about the financial health of the property he has invested in or going to buy to avoid any future hurdles.