Bank auction property
2 weeks ago
I am buying a bank auction property where bank has the physical possesion. Is it safe to buy this property. Is it possible that the borrower may file case against the bank or DRT post property is given on auction
A.Dear Client,
Banks typically auction properties only after taking physical possession. While the bank recovers its dues from the auction sale, the winning bidder may inherit liabilities such as pending society dues, electricity bills, and property tax. These dues can be significant, as the borrower may have defaulted on various expenses related to the property. Prospective buyers of bank auction properties should conduct thorough due diligence and be aware of associated risks. This includes conducting a proper title search from the relevant authority/registry and ensuring there are no pending loans, mortgages, or legal cases against the property. It's advisable to engage a qualified attorney experienced in property matters to review documents and identify any potential hidden issues.
Banks typically auction properties only after taking physical possession. While the bank recovers its dues from the auction sale, the winning bidder may inherit liabilities such as pending society dues, electricity bills, and property tax. These dues can be significant, as the borrower may have defaulted on various expenses related to the property. Prospective buyers of bank auction properties should conduct thorough due diligence and be aware of associated risks. This includes conducting a proper title search from the relevant authority/registry and ensuring there are no pending loans, mortgages, or legal cases against the property. It's advisable to engage a qualified attorney experienced in property matters to review documents and identify any potential hidden issues.
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A.Dear Client,
Banks generally put properties for auction only after taking physical possession. Though a bank will recover its dues fully from the bid amount accumulated through the auction sale of the property, the bid winner and the prospective buyer of the said auctioned property may have to bear all the related liabilities on that property like pending society dues, electricity bills, property tax, etc. Sometimes, these dues can be substantial, There is a high possibility that the borrower who failed to repay his housing loan, might have defaulted on other expenses attached to that property. If you are considering buying a bank auction property, it is important to do your due diligence and to be aware of the risks involved. The bidder shall also conduct a proper title search from the concerned authority/registry, before bidding on immovable property,.Apart from conducting due diligence, it is also important for a bidder to check that there is no other pending loan/mortgage or legal case pending against the property. can also hire a qualified attorney with experience in property matters to review the documents and make sure there are no hidden issues,
Banks generally put properties for auction only after taking physical possession. Though a bank will recover its dues fully from the bid amount accumulated through the auction sale of the property, the bid winner and the prospective buyer of the said auctioned property may have to bear all the related liabilities on that property like pending society dues, electricity bills, property tax, etc. Sometimes, these dues can be substantial, There is a high possibility that the borrower who failed to repay his housing loan, might have defaulted on other expenses attached to that property. If you are considering buying a bank auction property, it is important to do your due diligence and to be aware of the risks involved. The bidder shall also conduct a proper title search from the concerned authority/registry, before bidding on immovable property,.Apart from conducting due diligence, it is also important for a bidder to check that there is no other pending loan/mortgage or legal case pending against the property. can also hire a qualified attorney with experience in property matters to review the documents and make sure there are no hidden issues,
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