The Reserve Bank of India (RBI) on Thursday, Nov 3, asked banks to bring in a disclosure clause under which commercial real estate players will also have to mention in their advertisements the name of the bank to which a property has been mortgaged.
“On a review, it has been decided that the provisions contained therein (relating to disclosures) will be applicable to commercial real estate also,” the central bank said yesterday.
Earlier, the central bank has made it mandatory for banks to inculcate the provisions relating to disclosure of a mortgage property in advertisements for ‘private builders’ at the time of inviting public to buy flats or a property.
Currently, a builder or a developer or a company has to disclose in its advertisements like pamphlets or brochures the name of the bank to which the property is mortgaged.
With this notification, commercial realty will also come under the ambit of such disclosures.
