Who Pays Overdue Utility Bills On A Property Purchased At Auction?
Overdue Utility Bills On A Property- Items sold through a public bidding process are referred to as property purchased through auction. These auctions can be held by a variety of organisations, such as banks, public auction houses, and government bodies. However, who is in charge of covering the outstanding utility bills for real estate purchased at auction? The Supreme Court’s decision, the restrictions on collecting electricity bills, and other topics are covered in this article.
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Since properties are sold at competitive prices, purchasing them through auction is a profitable proposition. These properties do come with hazards, though, like short inspection windows, possible legal problems, and unpaid utility bills. In January, Mr. Ritik Varma, a Karnataka native, purchased a property in his hometown of Hubli by auction. When he examined the list of the property’s utility bills following the completion of all the paperwork. The remaining six months were due, he discovered. Mr. Varma is currently perplexed and is wondering who would cover the outstanding utility bills for the house he purchased at auction. This blog provides an answer to this query in light of the ruling from the Supreme Court.
What is the time limit for recovering electricity bills?
The Limitation Act of 1963 sets the time restriction for recovering unpaid energy bills in India. The statute of limitations is two years from the date the payment became due, according this Act. This implies that authorities or power distribution firms have a two-year window in which to lawfully collect unpaid debts from customers. In order to guarantee on-time payment and compliance with legal requirements, it is crucial that both customers and energy providers are aware of this statute of limitations.
After the bank auctions off a property, who pays the society dues?
Let’s say someone wins a property in a bank auction. In that scenario, any unpaid debts associated with the property up for auction, including society dues, municipal taxes, statutory obligations, and utility bills, must be paid by the buyer. The No Objection Certificate (NOC) cannot be issued by the society until all outstanding debts are satisfied, which means that the principal amount plus any interest that has accumulated must be paid.
Supreme Court rules on unpaid utility bills of property purchased at auction
The Supreme Court of India tackled the problem of unpaid electricity bills related to homes purchased through auction in a landmark 2023 decision. The court made it clear that after buying a home at auction. Buyers are in charge of paying any unpaid utility bills, such as those for electricity, water, and municipal taxes. The decision emphasizes how crucial it is for purchasers to carry out exhaustive due diligence and make sure that all debts pertaining to the acquired property are settled on schedule.
In general, purchasers purchasing real estate at auction need to exercise caution over delinquent utility payments. These include society levies and electricity costs, which are subject to legislative requirements. Financial obligations may result from failing to pay these invoices. Therefore, it is imperative that purchasers carefully review all paperwork and pay any unpaid invoices as soon as possible. This guarantees a seamless transfer of ownership and avoids future financial or legal problems.
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