1) What is Physical Possession?While buying a property during a bank auction, Physical Possession is a very important aspect. It means that the bank has taken actual control of the property — the property is completely vacant, and there is no borrower, tenant, or any third party occupying it.
When a property is in physical possession, a buyer can get direct possession immediately after winning the auction. Such properties usually do not require any legal disputes or evictions, making the transaction quick and simple.
Benefits:
• The property is ready for you to use immediately
• No need to evict anyone
• Avoids court or police proceedings
• It does not take time to get a Possession
• Less risk and more transparency
In contrast, if the property is in “symbolic possession”, it can sometimes take months to get possession and you may have to face legal proceedings.
So, if you are planning to buy a property from a bank auction and want to get the possession without any delay or hassle, a property with physical possession is considered to be the best option.
2) What is Symbolic Possession?
In bank auctions, "Symbolic Possession" means that the bank has taken possession of a property on paper, but has not yet got the actual (physical) possession. That is, the borrower, tenant or any other person is still living in that property.
In such cases, the bank usually issues a notice under the SARFAESI Act and begins the legal process to take possession. However, until the bank gets actual possession with the help of a court or district magistrate, the property is considered to be in only "symbolic" possession.
Challenges in symbolic possession:
1. Delay in getting possession: It may take months or years for a buyer to get possession even after winning the auction.
2. Legal process: A court case or police assistance may be required to get possession.
3. Property not usable: You cannot live in it or rent it out until you get possession.
4. Additional expenses: There may be lawyer fees, court fees and other legal expenses.
What should do?
If you are planning to buy a property with symbolic possession, make sure to ask the bank the following before the auction:
• How far has the process of taking possession reached?
• What is the estimated timeline?
• Is any case going on in the court?
Symbolic possession may offer cheaper property, but it involves more risk and waiting. If you want quick possession, physical possession is a better option.
