Do banks evict tenants?

While a tenants tenancy might be protected by the 2004 Act, once sold institutions frequently initiate proceedings to remove the tenant.

Can a mortgagee evict a lessee?

The mortgagee may demand possession of the premises, but cannot force you to leave without a court order. It is important that you do not leave until there is a court order otherwise you may have to pay the landlord compensation for abandoning the premises (see Factsheet 16: Ending tenancy early).

What is symbolic possession in auction?

“Symbolic possession is when the bank has the legal right over a property, even though the previous owner continues to have physical possession (occupancy) in the property. Under the law, banks are required to take physical possession and then transfer the rights to the buyer.

How much notice must tenant give?

The minimum notice requirement is 28 days. If you have a monthly tenancy, you will have to give one month’s notice. If you pay your rent at longer intervals you have to give notice equivalent to that rental period. For example, if you pay rent every three months, you would have to give three months’ notice.

What is mortgagee consent?

Why is mortgagee consent required? It is a standard term of commercial mortgages that the landlord cannot lease the property without the consent of the bank. “Without our consent you may not, and may not agree to lease or licence the property, or allow a surrender or variation of any lease or licence.”

Can a tenant take over a mortgage?

You can legally take over a mortgage by assuming the original loan, provided you meet the bank’s requirements. An “assumable” loan is secured by a mortgage that contains no “due on sale” provision. Even though you are taking over the loan, the lender may require a down payment.

How do banks deal with possession notice?

If the borrower’s account is classified as a non-performing asset (NPA), where repayment is overdue by 90 days, the lender has to first issue a 60-day notice to the defaulter. If the borrower fails to repay within the notice period, the bank can go ahead with the sale of assets.

How banks take physical possession of property?

After the possession notice under section 13 (4) and if there is no stay of further proceedings, the Bank will proceed to take physical possession of the property under Section 14 of the Act through District Magistrate or Chief Metropolitan Magistrate etc.

What to do if tenant does not vacate in India?

What can I do if a tenant refuses to move out? If the tenant does not comply with the legal grounds and refuses to move out, an eviction procedure could be started. Valid grounds for moving the court for eviction are the failure to pay rent and refusal to move outpost the end of lease period.