Loan disbursement for underconstruction registered property

Q: Hi Nitin,
Thanks for taking time out to write and share wealth of information. I have a query relating to Registration. The property happens to be underconstruction. I have paid the 20% downpayment and the remaining 80% bring funded by bank loan. I have got property registered as required by bank before discussing loan. Now in such a case if I ask bank to disburse say only 60% amount instead of 80% what builder is asking and keep the rest 40% pending until possession what action can builder take? Does builder legally have the ownership of the apartment? Can builder cancel my apartment? What are the repercussions of such a action on the buyer?

Akshat, Hyderabad

6th August 2016

Legal in Madhapur, Hyderabad

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Replies (1)

Hi Akshat, As far as I know the builder will not cancel the booking but again it difference from builder to builder. For the loan think, you have to talk with the concern bank from where you are planning to take the loan. To be on the safer side first talk with the builder and also take advice from your legal expert as well.