Rigorous due diligence key when buying property via bank e-auctions

While properties can be purchased in such auctions at a discount to market value, they carry the risk of hidden liabilities

Buying a home through a bank auction can appear attractive because of lower prices, but a recent Allahabad High Court ruling highlights the hidden risks. A buyer discovered large unpaid utility bills after the purchase. As the sale was held on an “as is, where is, whatever there is” basis, the court ruled that the bank was not liable for undisclosed dues, making the buyer responsible.

 

Price advantage

 

SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) auctions offer significant pricing benefits. “They can offer properties at 20–50 per