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Self Contructing an Apartment
June 26 2012 , 06:50 PM   #1
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Self Contructing an Apartment

Hi, We have 6 friends came together and purchased a land of 3000 sft in Solapur and constructing an apartment of 6 flats (each of us will get one flat). We have got all the required approvals for the construction as per municipal rules. We have created a "Deed of Declaration" in which we allocated the flat # with details of carpet area etc and the same is registered and updated the 7/12 extract on individual name (We have not paid any stamp duty here).We have constructed till plinth level with our own funds. Out of 6 only 4 of us are applying for bank loan (2 are managing with their own funds as they are not eligible for bank loan).
The problem is when we applied for bank loan , 3 banks got rejected our loan on the ground that the individual flat cannot be mortgaged on individual name. They are saying currently we are co-owners and not the having individual title on flat allocated in the deed of declaration.
We have consulted 4 lawyers so far but all are giving different opinion. Some says there should not be any problem to avail bank loan on individual name as title is very clear on individual name. Some says we need to get registered with "Maharashtra apartment ownership act" and need to pay the stamp duty (which comes around 1 lac for each) in order get clear title on individual name.

My quetion-
1. Is registered the deed of declaration and 7/12 extract are not sufficient to claim a clear title on individual name?
2. What happens if we do not registered under "Maharashtra apartment ownership act" apart from not eligible for bank loan.

Jitu sir, would really appreciate your help here. Thanks in advance.
June 26 2012 , 10:57 PM   #2
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Quote:
Originally Posted by prashant555
1. Is registered the deed of declaration and 7/12 extract are not sufficient to claim a clear title on individual name?
2. What happens if we do not registered under "Maharashtra apartment ownership act" apart from not eligible for bank loan.

Would suggest you to write a query letter to RBI seeking advice from them for the same + also posting the same on the Indian Lawyers Forum as may be everyone over there will share their bit of knowledge and connecting the dots from their will ultimately land you with the solution.

Secondly would also suggest you to start seeking the definitions of each and every term coined by all the lawyers, as understanding the definitions would help you much instead of seeking the advice of different lawyers.

Mostly lawyers play with the intention of the word used in the particular language. The same is to be done by us, just some hard work and we might give a much better solution than what they might suggest us. After all giving a small try is never harmless, as we would always learn from that.


Would start asking my friends/relatives if they can help you with your query, once I get the info will surely share the same.
June 26 2012 , 11:10 PM   #3
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Read the section number 5, then Section 2, after that section 11 & last Section 12 from the attached PDF, which states that anyone who is building a multistory building needs to register itself with the State/Central Government Body who is responsible to entitle the same.
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File Type: pdf MAO_1970.pdf (107.3 KB, 120 views)
June 26 2012 , 11:12 PM   #4
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So regarding the second point I feel that you need to register yourself with the "Maharashtra apartment ownership act", but now you need to seek that the amount that you pay just now will you get refund of it when you register the same property against your name at the time of Agreement. As this would also give you an idea about the amount you are going to lose from your side if you are not refunded by government.
June 27 2012 , 12:20 PM   #5
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Thanks immortal. pdf is really very useful to understnad the concepts. Thanks much.
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