Sarfesi Acution property document
8 months ago
Dear Sir
I wish to participate in a SARFESI auction. However, the auctioning bank/ARC do not provide the legal documents related to the property prior to submission of the Earnest Money Deposit (EMD). Without the legal verification of the property documents, it doesnt seem wise to submit the EMD. Please let me know if the Banks/ARCs are entitled to this requirement of obtaining the EMD before furnishing the legal documents? Does the law cover this aspect?
A.Dear client,
EMD or Earnest Money Deposit is a monetary deposit that is made by bidders while participating in govt tenders. It is a security deposit that ensures the bidders' commitment to the contract, and it also establishes their financial capability. EMD is a mandatory requirement for most govt tenders in India.
EMD of the successful tenderer shall be refunded after the Security Deposit as called for in the contract is furnished. EMD furnished by all unsuccessful tenderers will be returned as early as possible after the expiry date of validity of their offer but not later than 30 days of award of the contract.
EMD or Earnest Money Deposit is a monetary deposit that is made by bidders while participating in govt tenders. It is a security deposit that ensures the bidders' commitment to the contract, and it also establishes their financial capability. EMD is a mandatory requirement for most govt tenders in India.
EMD of the successful tenderer shall be refunded after the Security Deposit as called for in the contract is furnished. EMD furnished by all unsuccessful tenderers will be returned as early as possible after the expiry date of validity of their offer but not later than 30 days of award of the contract.
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A.Dear Client,
The major issue with bank auctions is that you won’t have access to property records for title searches before purchasing. Banks are reluctant to divulge a lot of information. The bank’s only goal is to sell the property. So, buying a house or property at a bank auction involves potential risks. As part of their due diligence, buyers must conduct a title search and verify the property’s ownership. Banks neither take possession of the property nor take on any liability for it. With houses for sale at bank auctions, buyers have few alternatives regarding location or price. It might be difficult for buyers to inspect a home and ascertain its exact physical state. Visit the property, and confirm the vacant status before buying the property before depositing EMD. As there was no organized data in India, this used to be one of the most unpleasant steps. However, this process has now been simplified. The Indian Banks Association (IBA) launched the Indian Banks Auctions Mortgaged Properties Information (IBAPI) portal as part of the Department of Financial Services (DFS), Ministry of Finance, overarching policy to provide a common platform to display information about mortgaged properties to be sold at an online auction by Banks, starting with Public Sector Banks. The inspection date and time are now being mentioned by banks in auction notices. To inspect the property, you can go to the location at the appointed time. You can reach the concerned officer using the information provided in the e-auction notice. It is best to get in touch with him and ask for all the information. So, it is advised to contact a lawyer or other specialist for this process before depositing EMD if you are sincere about purchasing the property through auction.
The major issue with bank auctions is that you won’t have access to property records for title searches before purchasing. Banks are reluctant to divulge a lot of information. The bank’s only goal is to sell the property. So, buying a house or property at a bank auction involves potential risks. As part of their due diligence, buyers must conduct a title search and verify the property’s ownership. Banks neither take possession of the property nor take on any liability for it. With houses for sale at bank auctions, buyers have few alternatives regarding location or price. It might be difficult for buyers to inspect a home and ascertain its exact physical state. Visit the property, and confirm the vacant status before buying the property before depositing EMD. As there was no organized data in India, this used to be one of the most unpleasant steps. However, this process has now been simplified. The Indian Banks Association (IBA) launched the Indian Banks Auctions Mortgaged Properties Information (IBAPI) portal as part of the Department of Financial Services (DFS), Ministry of Finance, overarching policy to provide a common platform to display information about mortgaged properties to be sold at an online auction by Banks, starting with Public Sector Banks. The inspection date and time are now being mentioned by banks in auction notices. To inspect the property, you can go to the location at the appointed time. You can reach the concerned officer using the information provided in the e-auction notice. It is best to get in touch with him and ask for all the information. So, it is advised to contact a lawyer or other specialist for this process before depositing EMD if you are sincere about purchasing the property through auction.
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