For individuals seeking to purchase at a reduced price, non-performing asset (NPA) properties present a special investment opportunity. Recently, I asked my friend, a real estate advisor, is it safe to buy NPA property. He said even though the reduced costs may be tempting, as a purchaser, you should proceed cautiously, particularly when interacting with local agencies.
Is It Safe to Buy an NPA Property through a Local Agent?
Although purchasing an NPA property through a local agent is safe, it can be risky. Ensuring the property's history is transparent and all legal checks are finished is the major concern. Agents are not completely transparent regarding unpaid debts or legal issues. Hence, working with a reputable and knowledgeable agent who can appropriately guide you and guarantee a safe and easy transaction is crucial.
Risks to Consider while Purchasing NPA Property
The title to the property may not be clear.
The NPA property may be the subject of ongoing legal issues.
It may have outstanding dues, for which the buyer would be liable.
After the auction, there may be a delay in getting the property in person.
Unreported structural or other damages in the property could necessitate expensive repairs.
If you do due diligence, purchasing a non-performing asset property, typically at a bank auction, can be secure. Ultimately, the buyer might choose to acquire an NPA property from the mortgage company, a local dealer, or the owner directly.
Check Bank Auction Properties in Your Preferred City via NoBroker.
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Is It Safe to Buy NPA Property?
Hariharan66
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5 months
2025-06-26T10:28:26+00:00 2025-06-26T10:28:27+00:00Comment
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