Dear Rediff Guru I had taken a home loan from HDFC bank. While taking the home loan I had filed a Notice of Intimation (NOI) with IGR Maharashtra within 30 days of mortgage informing about the mortgage taken from HDFC Bank. I submitted the IGR receipt to the bank. After a period of 3 years the home loan was closed. Post home loan closure I was provided with the bank NOC and original property documents. I was informed by one of my friends that a reconveyance needs to be filed as the government records would still reflect that the property is under mortgage with HDFC bank. Upon query, the HDFC bank customer care stated via email that as no lien was marked by the bank on the property there is no need for removing the lien from the property. Additionally, the bank also stated that in their bank records and CERSAI the bank has no ownership on the property. I cross verified in CERSAI and confirmed that the bank has indeed no ownership rights on the said property. Please advise if I still need to file a reconveyance deed. If yes then please let me know what is the process and if the bank official also needs to be present at the registrar office. Thank you.

Ans: I understand your frustration with the current situation. You've faced delays and complications with your home loan process and the builder's compliance with project requirements. Let's break down your options and potential solutions.

Issue Breakdown
Delays in Loan Processing:

Your initial loan sanction letter from Axis Bank is now over six months old, requiring reprocessing.
You've already paid processing fees and opened an account as instructed.
Builder Delays:

The builder has not submitted necessary documents since March.
The project is only sanctioned up to 10 floors, with pending approval for additional floors.
Options and Steps to Take
Reprocess the Loan Application
Contact the Bank:

Explain your situation to the bank manager and request a waiver or discount on the processing fee for reapplication. Highlight that the delays were not due to your actions.
Documentation:

Gather all required documents for reprocessing. Ensure all your paperwork, including the builder's documents, is complete and up-to-date.
Loan Re-approval:

Follow the bank's instructions for reprocessing. This includes verification and submission of all necessary documents.
Address Builder Issues
Communicate with the Builder:

Set up a formal meeting with the builder. Demand a clear timeline for submitting the required documents.
Request written confirmation of the current status of project approvals, especially regarding the floors beyond the 10th.
RERA Complaint:

Since the builder is RERA-registered, you have the right to file a complaint with the Real Estate Regulatory Authority (RERA). This can expedite the builder's compliance.
Visit the RERA website for your state, and follow the procedure to lodge a complaint. Provide all relevant documents and communications.
Legal Consultation:

Consider consulting a legal expert specializing in real estate. They can provide advice on how to proceed if the builder continues to delay.
Evaluating the Builder's Project
Project Approval Status:

Verify the approval status of the builder's project. Ensure that the current approval includes your flat and that future approvals for additional floors are likely.
Alternative Projects:

If the builder's project approval is uncertain, consider looking at alternative projects. Ensure these projects have all necessary approvals in place.
Negotiating with the Bank
Processing Fees:

Negotiate with Axis Bank for a reduction or waiver of the processing fees due to the builder’s delays. Provide evidence of your timely actions and the builder's delays.
Account Status:

Confirm the status of the account you opened as per the bank’s referral. Ensure it meets the requirements for the loan application.
Practical Tips
Documentation:

Keep a detailed record of all communications with the bank and the builder. This includes emails, letters, and meeting notes.
Follow-up:

Regularly follow up with both the bank and the builder. Persistence is key in ensuring timely action.
Patience and Persistence:

The process may be lengthy and frustrating. Stay patient and persistent, keeping your long-term goal in mind.
Conclusion
You’re facing a challenging situation with your home loan and the builder’s delays. By reprocessing the loan application, actively communicating with the builder, and considering legal options, you can navigate this situation effectively. Persistence and proper documentation will be crucial in achieving your goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: To update your property records, a No Due Certificate is essential. For houses built on plots, it's mandatory to submit this certificate to the Patwari or Tehsildar. This removes the bank's name from the property records.

For flats in the G+2 system, the same rules generally apply. However, it's best to verify with your local Patwari or Tehsildar office as regulations may vary by region.

Here's what you should do:

Visit the Patwari or Tehsildar office.
Submit your No Due Certificate.
Request the removal of the bank's name from the property records.
Always confirm the process with local authorities to ensure you have the latest and most accurate information. Keep all your property and loan documents organized for future reference.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in