Property of the prized subscriber or a third party Guarantor situated within BBMP/Corporation/BDA/MUDA limit is accepted as security. Gram Panchayat/Agricultural properties and also property having B-Khatha will not be accepted. The procedure is as below:
Subscribers must submit photocopy of all the relevant papers of the property to the concerned branch. These papers will be subjected to preliminary scrutinization by the concerned Foreman. Once the documents are found ok with basic eligibility, subscribers will be intimated to submit the original papers and same will be forwarded to our empanelled Advocate for detailed verification and Legal Opinion. Upon obtaining positive legal opinion, Valuation of the property will be done by our empanelled valuer and spot inspection will be conducted by the Foreman to assess the value and acceptability of the property. Only 50% of the market value as given by the Valuer in his report will be considered by the Company. Once the Legal Opinion and Valuation is over, Registered Mortgage of Title Deeds will be done at the Sub-registrar’s office after getting clearance from the Head Office.
Subscriber must pay the charges towards documentation, Legal Opinion and Valuation of the property to the company. Applicable stamp duty and other related charges for mortgage registration must also be borne by the subscriber at the sub-registrar’s office.
This whole process beginning from preliminary scrutinization to mortgage registration may take at least 15 -20 days time to complete and hence subscribers must plan properly and ensure that the property papers are acceptable even before bidding to avoid delay in receiving prized money.
However it is the sole discretion of the ‘MSIL Chits’ to accept or reject any property based on the factors like location, saleability etc even if the owner has got the valid title over the property and legal opinion is clear.