Is Building Regularization Plan compulsory for applying for home loan in Nationalized banks?
Are you planning to buy a flat with a Bank loan without a Building Regularization Scheme (BRS) document? Before you do, it is advisable to follow the responses in this thread and know whether it is illegal to buy a flat with a nationalized Bank home loan without the Building Regularization Scheme (BRS) document.
One of my cousins is about to purchase a resale flat at Hyderabad in Andhra Pradesh. Everything was almost done but there is hurdle in loan sanctioning from the State Bank of Hyderabad as the valuers asked for Building Regularization Scheme (BRS) which is also known as Building Penalization Scheme (BPS) and they cannot approve without this particular document. When she asked for the same from the flat owners, they said that they don't have this document. Now, no Nationalized bank will sanction home loan without this particular document. Greater Hyderabad Municipal Corporation (GHMC) is very particular about this scheme and the time for applying for this document is also over. Now the buyer and the seller has to wait for notification from GHMC for applying for BPS.
The flat owners are asking her to get loan from any of the private bank which would sanction loan easily without BPS. She already paid them 5 lakhs in advance at the time of agreement. And she is keen on purchasing the flat.
She wants to know whether purchasing flat without BPS would be illegal and will this give rise to legal problems to her in future? The second hand flat she wants to purchase is around 10 years old constructed in 2002. Can any expert in loans and legal matters with purchase of resale flats answer to this query and help her out?
Thanks in advance.