Can I buy NPA property?

Buying a property through NPA auction? Look out for squatters, since the property will be sold by the bank on an ‘as-is-where-is’ basis. This means, it will be up to the buyer and not the bank, to deal with the squatters after taking control of the property.

How can I buy distressed property in India?

There are two ways one can buy distressed property—via a bank auction or directly from the seller. The bank auction route is lengthier, with the bank releasing an ad, setting a date for the auction, inviting bids, collating the offers and then finally deciding who to sell the property to.

How can I buy bank auction property?

Steps to Buy Property through Bank Auction

1. Step 1: Search for Bank Auction Property.
2. Step 2: Check Property Details.
3. Step 3: Physically Inspect the Property.
4. Step 4: Submit Tender Form.
5. Step 5: Bidding.
6. Step 6: Auction Date.
7. Step 7: Sale Certificate.
8. Step 8: Register Sale Certificate in Sub-Registrar office.

Is Auction legal in India?

India Code: Section Details. (1) Where goods are put up for sale in lots, each lot is prima facie deemed to be the subject of a separate contract of sale; (6) if the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of the buyer.

How can I buy a bank owned property in India?

To bid on a foreclosed property, you have to submit your sealed bid along with a minimum reserve price amount to the bank. Once the bidding period ends, the bank conducts the auction and sells the property to the highest bidder.

What is foreclosure India?

Foreclosure is the process through which a secured creditor[1] (‘lender’) claims ownership over a property mortgaged by a defaulter borrower. In India, lenders used to have to obtain permission from a Civil Court before carrying out a foreclosure, under Section 67 of the Transfer of Property Act (TPA), 1882.

What is NPA property?

Definition: A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. Description: Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets.