Is It safe to purchase NPA (Non-Performing Asset) through a real estate agent?             

Buying an NPA property could be rewarding as you can get good properties at affordable prices, but it also involves some risks that can cause trouble for a buyer in the future. Some people seek help from real estate agents to find affordable and exclusive property.

We will talk about whether buying an NPA property through a local agent is legal, the risk involved in an NPA property, and all the other aspects of it. So, before buying it, you can check all the elements to ensure they are safe. Local real estate agents can help you purchase properties at the most affordable price available. However, the question is how local real estate agents can help you while buying an NPA property and what significance they hold?

Understanding NPA (NON Performing Asset) 

Now assuming a scenario, Mr Ayush contacted a local real estate agent to buy a NPA property. He visited sector 132 in Noida through a local agent and really liked the locality as it is one of the most posh areas in Noida. But MR. Ayush is a wise man. Before purchasing the NPA property, one of his friends in Noida named MR. Rahul who runs a RERA authorised real estate consultancy named Realty Dart.

Mr. Rahul possesses exceptional knowledge and understands the depth of real estate. He did some researches about the property Mr. Ayush was about to purchase and found that the property had an ongoing case. When Mr. Rahul delivered that information to Mr. Ayush. He got troubled and confused, now what should he do? Let’s asses what steps Mr. Ayush can take.

What is NPA (Non Performing Assets)?

When a person purchases a property on loan and doesn’t pay its EMI for 3 months continuously, then his property comes under NPA. After that the bank provides that person (defaulter) time of 60 days to pay, prior to seizure under Security and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act to settle their liabilities.

For example: you purchase a property on loan from SBI Bank. SBI splitted your total amount in monthly EMI’s of 25000 rupees per month. You paid that EMI for some months but after that you didn’t pay any EMI for 3 months without informing the bank or without proper permission. 

Now, we all know that the earning source of a bank is the interest we pay with our EMI and when we don't pay EMI, the bank loses both the principal and interest amount. So to recover the amount the bank provided the borrower, the bank ceases the property that the borrower kept on mortgage to the bank. 

The bank classifies that property as NPA, which means non performing asset, the asset which is not providing any returns to the bank. When a person fails to return the amount given to the bank, the bank auctions his property and then recovers their total amount.

Is It Legal To Buy A NPA Property Through A Local Real Estate Agent?

Yes, it is legal to buy a property through a local real agent only if a bank allows him to be their mediator, and the agent works as a mediator between the bank and the buyer. But always prefer RERA authorised agents such as Realty Dart, as they are authentic and reliable and provide optimum transparency. The agent will provide you all the relevant information about the NPA property and help you in understanding all the formalities with ease. Now understand the steps you should take before purchasing a NPA property.

Step-by-Step Guide for Buying NPA Property with a Local Agent

These steps will help you in identifying the potential risks involved in the NPA projects. It will help you in ensuring that everything goes well.

Choose a Real Estate Agent

       •  Find an experienced agent who knows about NPA properties Such as Realty Dart
       •  They'll help you find the right properties and understand the legal stuff

Finance for NPA Purchase

Your agent will help you get approval for finance from a bank or financial institution.

Negotiations

Once you find a property, your agent will help you negotiate the price with the seller, whether it's a bank or another institution.

NPA Property Inspection

Your agent will arrange for a thorough inspection of the property to make sure everything is okay.

NPA Purchase Agreement

Before you sign anything, your agent will go through the agreement with you to make sure you understand all the terms.

Closing Process

Your agent will help you with all the paperwork needed to finalise the purchase. After this, you'll officially own the NPA property.

Conclusion

Buying NPA property can be a good opportunity, but it's important to be careful. Mr. Ayush and other buyers should think about things like legal issues, money matters, and the property market before they buy. A local agent can be really helpful through all these steps, making sure everything goes smoothly and you make a good investment.