Date : 18 Feb, 2009

Question

I had identified a property in Pune. As per the builder??s clauses, I had to pay the 15% amount for agreement signing. However I was able to arrange only 10% of the total amount. However the bank providing home loan promised me 90% loan. Based on the offer letter from the bank the builder entered into an agreement with me on 10% of the amount. After the agreement was signed, the builder raised a demand letter of 5%. I took this demand letter to the bank. The bank said that they shall not disburse this amount until and unless the plinth was completed, which was not right on their part. So I had to talk to the builder and convince him to raise a demand letter of 5% 20% on completion of plinth. In this entire procedure 6 months had passed. The bank has still not entered into a agreement with us as now disbursement has taken place. When I send the demand letter of 25% to the bank, the bank now comes up with new issues saying that as the valuation of the flat has changed, they can give me loan only upto 80%. Please guide in this case what should I do? As I am not in a position to raise the shot-falling 10%. Can I deny taking loan from this bank and apply freshly in another bank? Shall my processing fee be returned by the bank? Also should I straight away approach the builder and request for cancellation for my booking? If I request for cancellation of the booking, what is the procedure? When and how much money shall I get back from the builder? How much money shall be refunded from the flat registration and stamp duty, I have paid for this flat?

Answer

Yes, you can approach another lener for the loan, however, you will have to forfiet the processing fee. You can also approach the builder to cancel the booking request, the procedure and the amount of money you get back will depend on your contract with the builder. Please consult a local lawyer soecialising in property matters as a comment on this issue is based on facts and data.