Frequently Asked Questions

Know everything about Bank auction properties

Who will be the transferor when I will go for registration?

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

Who is the seller in this case?

Bank or institution who has rights on the assets in-lieu of borrower defaulting as per SARFAESI act is the seller.

Can I invest in more than 1 opportunity

There are no restrictions on investments. You can invest in as many properties you want.

What are the timelines in the process till I register the asset in my name

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.

Can the borrower create legal issues or possession related issues once I buy

When you buy a stressed asset, you will have absolute rights to title and possession rights for that property. Borrower has no right whatsoever.

Do these assets have clear title

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.

Is it safe to invest in stressed assets

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.

Why should I buy a stressed asset

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.

It is it of inferior quality and use

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.

Why is it called stressed asset

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.