Planning to Buy a House, then Please Read This

January sells less than December
0 521

Planning to buy a house? Then wait a sec, read this article and be informed before you buying the house form a developer.

By Varun Singh

Are you planning to buy a new house and are unsure whether security interests is created on the property that you intend to buy from the developer then you should please read this.

Buying a house is a decision that people don’t take everyday. It is a decision which is made once in a lifetime by a homebuyer.

It is a tedious task from Planning to registering and finally moving in the house.

And a homebuyer cannot afford to make even a simple mistake, or being ignorant.

MahaRERA, recently came out with a circular that talks about the Central Registry Securitisation Asset Reconstruction and Security Interest of India (CERSAI).

CERSAI is very important when it comes to a property, and a homebuyer should know and be aware that whether the home that he intends to buy has a security interest created on it or not.

Ministry of Finance notified the establishment of the Central Registry Securitisation Asset Reconstruction and Security Interest of India (CERSAI), a Government Company , incorporated for the purpose of operating and maintaining the Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).

The objective of setting up of Central Registry is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property.

Government of India, subsequently issued a Gazette Notification dated January 22, 2016 for filing of the following types of security interest on the CERSAI portal:
a. Particulars of creation, modification or satisfaction of security interest in immovable property by mortgage other than mortgage by deposit of title deeds.

b. Particulars of creation, modification or satisfaction of security interest in hypothecation of plant and machinery, stocks, debts including book debts or receivables, whether existing or future.

Related Posts
1 of 324

c. Particulars of creation, modification or satisfaction of security interest in intangible assets, being know how, patent, copyright, trademark, licence, franchise or any other business or commercial right of similar nature.

d. Particulars of creation, modification or satisfaction of security interest in any ‘under construction’ residential or commercial or a part thereof by an agreement or instrument other than mortgage.

CERSAI had started registration of the data in respect of paragraphs (a) to (c) above, for the security interests created on or after January 22, 2016, w.e.f. May 25, 2016 for Scheduled Commercia[ Banks and w.e.f. July 1,2016 for all other entities registered with them.

Further, the registration of data in respect of paragraph (d) above has commenced since June 8, 2017 for all banks and Fls registered with CERSAI.

Meanwhile, the banks/ FIs have also started registering the security interests created before January 22,2016 (subsisting records).

MahaRERA circular stated, “Homebuyers / Allottees should be aware of such security interests created on real estate Projects / Apartments, which homebuyer is interested in purchasing.”

Therefore, MahaRERA has decided that henceforth all developers shall:
-During Project Registration, Submit Report from CERSAI on security interests created in the Real Estate Project (Avaitable on CERSAI website at www.cersai.org.in ) along with the encumbrances certificate. Incase no security interest has been created then the Promoter shall provide an undertaking confirming the same.

-Further, In each Quarterly Update, Promoter shall submit updated CERSAI Reports on Security Interests created on Real Estate Project by the Promoter or any of the allottees on the apartments in the project.

-The CERSAI reports submitted should be generated within l0 days from the date of submission.

Thus, henceforth before buying any property it is better for a homebuyer to check on the MahaRERA website whether the property has been mortgaged or not and save himself from any future agony.

Also Read: Conveyance Deed has to be registered within 3 months of Receiving OC

Leave A Reply