Is Building Regularization Plan compulsory for applying for home loan in Nationalized banks?
Date: 04 Jun 2013 Posted By:
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.
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.
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05 Jun 2013 Member Level:
Points : 4 (
Although it is difficult to give advice without looking into the past history of the flat. If the flat is situated in the approved colony then the seller might have constructed the flat without getting the construction plan approved. Then the following option is available with you:
1. You can ask the seller to apply for remodeling the house for which the seller may file the construction plan with certain modifications. The GHMC will have to consider the remodeling plan as a new application and can not refuse sanction if it does not violate the GHMC rules and there is no encroachment. However if such application is rejected on account of violations then on the basis of sale deed you may not even be able to get the flat transferred in your/purchaser's name. Even if you ask the seller to provide no dues certificate like house tax, water and sewerage bills then the seller will have to approach the GHMC as the seller is bound to provide it before entering into an agreement to sell.
2. However if the flat is a part of multistory building then it is not possible that multistory building could have been built without the approval of GHMC as Greater Hyderabad Municipal Corporation would have provided the basic amenities like water and sewerage only after approval.
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