Properties figuring in banks' lists are considered trust worthy. since banks do their due diligence before including one. Normally, banks approve projects that are saleable in terms of their demand in the market. Banks also look at the developer or promoter's capacity to complete the project.It is usually easier to get a home loan for a property in one of these projects.
House buyers can check whether a property they like is in a bank's approved list. For this purpose you need to go to bank's branch and check the list of approved projects. The bank officer will ask you for location and budget. Accordingly, he will shortlist about 5 project names.
If a particular project is in a bank's list, it indicates the project is relatively safer to buy or invest. But one can not trust the list completely as banks can not take the guarantee in case of a title dispute or delay in possession.
Most of banks were financing house buyers without any prior knowledge of the problems over land title and clearances. Later, when the case went to the court, banks stopped lending to house buyers.
As the bank's approval on a project is not the final word on the authenticity of the title and clearances, you should separately verify the details of the project. While the project is under construction, ask property dealers and consultants operating in that area for more information on the project. Other details can be sought from the local development authority by filing an application. If the developer has a licence number to build a particular project, whether he has the title of the land and if the local authority has approved the plans of the project.
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