FAQs
Hectapedia
Your questions answered. Discover more about our services and other frequently asked questions.
Bank or institution who published the auction notice is the transferor. Not the borrower. Bank’s representative will go with you for registration of the property
Bank or institution who has rights on the assets in-lieu of borrower defaulting as per SARFAESI act is the seller.
There are no restrictions on investments. You can invest in as many properties you want.
Banks provide 2-4 weeks’ notice for auctions and 2-4 weeks to pay the balance purchase value. Once a bank receives full consideration, they issue a sale certificate within 4- 5 working days.
When you buy a stressed asset, you will have absolute rights to title and possession rights for that property. Borrower has no right whatsoever.
Financial institutions selling these properties are 100% transparent on any known encumbrances and liens. Every stressed asset being sold goes through 4-5 validations on title before being put up for sale.
Yes, they are safe.
There is no delivery risk as these are sold on as-is basis.
They only need to be bought with money from banking channels. No cash so no risk of unsecured advances.
The registration is done by the Bank at full purchase value.
Banks have the legal possession rights but may not always take possession before sale as there’s cost and maintenance involved. Possession status is usually mentioned in the notice, else can be enquired from the authorized officer.
They are available for up to 70% discount to market price. There’s no brokerage in the transaction. Since seller is financial institution, the seller certainty is 100% with 100% transparency in transaction. Timeline of transaction is short so you can complete the transaction within 4-6 weeks.
There is no difference in value, utility or title of this asset. Only the seller is different and buying from a bank or institution is far better and transparent.
This is a technical jargon. Actually, the asset is not stressed, rather the seller is under stress since the borrower hasn’t paid the dues.
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Bank or institution who published the auction notice is the transferor. Not the borrower. Bank’s representative will go with you for registration of the property
Bank or institution who has rights on the assets in-lieu of borrower defaulting as per SARFAESI act is the seller.
There are no restrictions on investments. You can invest in as many properties you want.
Banks provide 2-4 weeks’ notice for auctions and 2-4 weeks to pay the balance purchase value. Once a bank receives full consideration, they issue a sale certificate within 4- 5 working days.
When you buy a stressed asset, you will have absolute rights to title and possession rights for that property. Borrower has no right whatsoever.
Financial institutions selling these properties are 100% transparent on any known encumbrances and liens. Every stressed asset being sold goes through 4-5 validations on title before being put up for sale.
Yes, they are safe.
There is no delivery risk as these are sold on as-is basis.
They only need to be bought with money from banking channels. No cash so no risk of unsecured advances.
The registration is done by the Bank at full purchase value.
Banks have the legal possession rights but may not always take possession before sale as there’s cost and maintenance involved. Possession status is usually mentioned in the notice, else can be enquired from the authorized officer.
They are available for up to 70% discount to market price. There’s no brokerage in the transaction. Since seller is financial institution, the seller certainty is 100% with 100% transparency in transaction. Timeline of transaction is short so you can complete the transaction within 4-6 weeks.
There is no difference in value, utility or title of this asset. Only the seller is different and buying from a bank or institution is far better and transparent.
This is a technical jargon. Actually, the asset is not stressed, rather the seller is under stress since the borrower hasn’t paid the dues.
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Yes. Properties are either under physical possession, i.e. with lock and key of the bank or under symbolic possession, which is legal possession.
Yes.
Banks auction these properties either under SARFAESI or under IBC. Both these laws are two of the most conclusive ones in India and provide the banks with full authority to sell these assets for recovering their dues. The laws specifically provide that civil courts to not have any jurisdiction over properties sold under SARFAESI and IBC.
Actually banks or institutions selling are the exploited party here. Their money is stuck with borrowers and is affecting their financial health.
Borrowers of secured loans mortgage their property with banks. When the borrower does not pay their dues even after providing multiple options to repay and restructure, banks put up these assets for auctions.
Assets
All they need is payment from a bank account and register at full sale price. There could be increased stamp duty so this is factored. Also, Banks don’t spend on sales and marketing, which they pass on to the buyer.
To recover money that loan defaulters failed to repay. Banks do not have the intent to selling property for making profits out of it.
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Hecta is authorized by banks and institutions to market the properties they are selling. We source our properties from authorized sources designated by banks.
Most of the properties will have a notice appended to them which is published by the bank. Details of these properties may also be available on selling bank’s website.
You can find the available properties on Hecta. Financial institutions also put up these properties on their websites.
Yes. Currently, there is a declaration which you need to submit along with the application. It is part of the application form
Yes. You need to mention name of all applicants in the application form. Usually up to 5 applicants are allowed.
There are no limits on investments.
Investment options are available for all categories of land (residential, industrial) and built up (flats, independent houses, villas, industrial complexes, warehouses) among others
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It is bank’s procedural and legal way of saying that there is no delivery risk. They are offering the asset as it exists in its current condition. They are not promising any further construction or amendment in shape, size, quality, amenities, dues, title among others.
It is critical that you read this notice before applying. It contains most important terms of the sale and property information.
This is bank’s procedural way of notifying the property they are selling. It contains all relevant information they are required to publish.
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Banks mention the name of all borrowers and guarantors of the loan in notice only as part of the process. Banks are the seller here and there is no consent required from borrowers or guarantors.
If there are no other bidders or no one bids above the reserve price, you will get the property at reserve price and at times, add a minimum increment bid amount which is mentioned in the auction notice. This amount is usually 5,000 — 10,000.
To ensure only genuine buyers are involved in the transaction and auction process, banks usually require 10% of the reserve price as EMD. If you win, EMD is adjusted towards winning bid price. If you do not win, banks auto refund this EMD to your bank account
Reserve price is the minimum price at which a bank is selling the property.
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For properties under physical possession, banks maintain the property. For properties under symbolic possession, tenants maintain the property.
Selling banks transparently communicate all known encumbrances, claims and liens as part of the sale/ auction process.
There are usually no additional clearances required for the property. Banks issue a loan only for the properties which have all applicable clearances. Still, if there are any additional clearances required due to change in laws after the loan was disbursed, buyers will have to complete them on their own. And these could arise mostly due to purpose for which buyer intends to use such as change in land use, taxes to regularize under State scheme etc.
This can be verified by asking the bank officials during inspection of property papers. This is also covered as part of Hecta Visit Report
For SARFAESI auctions, Yes. For IBC auction, No. Law provides that all IBC sales are free of any charge or dues.
Properties can have local or municipal dues. It is in your best interest to do due diligence. You can also choose to get a Hecta visit report which can cover the information on dues, where possible and available.
Yes. Banks will share the list of all papers available with them and show you all available documents, but you’ll have to visit the branch and meet the authorized officer. Very few banks share copies of documents online.
Most notices have escalation matrix mentioned. In case there is none, you can refer the bank wise state wise escalation here <link>
Property can be visited only during pre defined slots which are either mentioned in notice or can be confirmed from authorized officer, whose contact details are mentioned in notice. Or you can get Hecta to get you a Hecta Visit Report to which will have all relevant details, compiled on best-effort basis.
Every bank has an assigned authorized officer who will arrange property visits.
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In some cases, when borrower pays all his dues after auction notice but before auction, auction is cancelled and EMD by all participants is refunded.
It’ll be auto refunded by the financial institution to your bank account
Banks usually conduct simple auction where prospective bidders bid with minimum increment amount over reserve price. Whoever bids the highest, wins the auction. Some banks conduct e-auction and some banks and regulators conduct physical auctions where you need to be present physically (self or representative).
Banks and financial institutions are trustful and regulated institutions. Sellers on Hecta have no intent of defrauding you with your money. In all cases EMD will be collected through NEFT/ RTGS directly to the selling bank’s own bank account.
You can purchase a Class X digital signature from any e-commerce website. They will be soon be available on Hecta site too.
Hecta can you navigate entire application process. Just reach out to our property advisor from the home page.
Hecta can help you navigate the application process. Just reach out to our property advisor from the property listing page.
Application process differs by banks and institutions. Application process is mentioned on each property listing. This information is also clearly in the notice of sale/ auction. It can be online or only offline mode too.
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Process is very simple and if you apply through Hecta we’ll guide at every stage of application.
If you win, process contains two stages:
Paying the balance as per auction Payment schedule
Getting the property registered in your name basis sale certificate issued by the bank
You will not own the asset at the end of the auction and EMD paid by you will be auto refunded by the respective bank or institution to your bank account.
No in most cases. You need to make one bid with minimum increment to win the auction.
Assets
If you apply through Hecta, you will get notifications for all upcoming auctions on your preferred mode of communication. Still if you can’t make it to the auction, and if you are not the sole bidder or highest bidder, the EMD deposited will be auto refunded by the bank to your bank account.
Yes. Once you apply to an auction sale, Hecta property advisor will arrange a training session for you along with assisting you on your queries.
Registration with any auction portal is very simple and you only need to fill up basic details (name, address, PAN and Aadhar). Registration with MSTC sometimes can last few days since they validate and review all submitted documents and then activate login ID. Process is detailed here <https://www.mstcecommerce.com/auctionhome/mstc/registration/buyer_reg_new.jsp>
Banks are not core technology companies. To ensure a fair sale process, companies specialized in conducting fair auctions are appointed by the banks and institutions. Hecta works with most of the leading banks. MSTC e-commerce (a Govt of India entity) is another provider which conducts auctions for Public Sector Banks.
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You should insist on written communication regarding extension on bank’s letterhead or email from official ID. Banks are formal organizations and they also need to document any extensions for their records.
Authorized officer in charge of liquidation will confirm this extention.
Banks’ intent is not to forfeit money but liquidate asset, thus, in case of slight delay, banks can arrange for extension of timelines.
Assets
EMD payment is mandatory to apply. Per the procedure, missing a payment would amount to forfeiture of payments made till date. However, banks’ intent is not to forfeit money but liquidate asset, thus, in case of slight delay, banks can arrange an extension of timelines. However, it is discretionary and done as exceptions.
Every notice mentions a Payment schedule, however for most auctions Payment schedule is as below:
10% is paid as EMD or application money
Another 15% within a day of winning the auction
Balance 75% within 30 days of the auction date.
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Loan rePayment schedule varies for each banks and depends on your credit score. It usually ranges from 1—10 years.
Rate of interest varies for each bank and is usually 1% to 2% higher than usual home loans.
Regulatory rules around secured loans are drafted in such a a way that only the banks auctioning a property can process a loan to pay for that property. Not all banks will process a loan to pay for their auctioned property due to their internal rules on conflict of interest.
Hecta is bringing its loan product in collaboration with leading financial institutions soon, which will enable you to pay for a property bought from any financial institution.
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Banks will mention complete KYC details in the sale certificate which will be sufficient for registration across India. They are flexible to add any additional details as required by any SRO.
Don’t worry! Speak to the authorized officer and he will arrange for issue of a fresh certificate with correct details. If you applied through Hecta, reach out to your property advisor who will help you with this.
Make sure the details for all buyers/ bidders is correctly mentioned as per Aadhar in the sales certificate. For NRIs, details as per Passport/ PIO card need to be mentioned.
Banks usually take 4-5 working days to issue the sale certificate once the full purchase price is paid by you.
Banks issue the sale certificate when you pay the full purchase price. This certificate is enough for you to get the property registered in your name.
Congratulations! Bank will now issue a sale certificate which you can use to get your property registered in your name. Remember to ask the bank for the list of all property documents available with the bank and seek original copies.
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Mostly these are genuine cases. If you believe it is deliberate, you can escalate as per the respective bank or institution’s escalation matrix available.
They may be on leave. Please drop a message if you haven’t. If you believe they are delaying it, you can escalate as per the respective institution’s escalation matrix available.
Most states require physical presence of the selling party for transfer and registration of the property.
You only need sale certificate and bank official at the SRO office for registering the property in your name. A document writer at the SRO office, will draft the transfer and title deed basis information mentioned in the sale certificate.
Each report is priced at INR 2,499 for the cities we cover. If the request is for a property that we don’t have coverage, we’ll do our best to find the professional. However, additional travel costs up to INR 7,500 can be added.
This report has so much information that is factual and helps you make that preliminary assessment. Some of the data can be verified online such a dues on respective utilities’ websites, circle rate from registration and stamps department website. It is done by trained, registered and empanelled professional. However, we encourage you to see the property yourself before buying, given it is a high value transaction.
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Yes. Authorized officers for the auction will offer to show property papers in their branch office. They can also share the list of property papers online and sometimes they share copies of property papers too. If you apply through Hecta and order a visit report, our property advisor will arrange the encumbrance certificate. Copies of property papers with bank can also be arranged from on a best effort basis but can’t be guaranteed since banks may not always show papers to a third party.
Yes, the Property visit report will be exclusively available to you. However, Hecta’s algorithm identifies properties to be profiled on an ongoing basis and we can also get the same property profiled for us. In case our algorithm picks the same property for profiling, we will refund the full amount paid by you.
Yes, you can request a Property visit report which will be delivered within 3 working days, for the cities we cover.
The report is prepared by skilled and authorized real estate professionals.
Visit reports are best-effort compilation of facts and data based on available information and access to the property. This is done by a real estate professional, who is trained and empanelled.
Potential buyers can evaluate properties remotely with Hecta’s property profiling site visit report. It covers details on location, shape, size, pictures, possession details, amenities, market price, among others.
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