Agreement to sell for mortgage property

This query is : Resolved 
 

(Querist)
13 October 2019

I had entered into an agreement to sell as a buyer.
The property is on loan from LIC housing finance LTD.
Can the seller has the right to enter into such agreement property of which in mortgage with bank.
Whether such agreement is valid.

The seller said that he will repay the loan from money we will provide.
All such thing has not been mentioned in agreement.

What precautions can I take now.
Pls help.




Tapal Manjunath Reddy (Expert)
13 October 2019

Yes..Seller can still execute an agreement of sale in favour of you inspite of existing loan on the property... However, there should be specific recital in the agreement of sale that the vendor shall clear the loan if any exists and deliver encumbrance free property at the time of execution of Registered sale deed in favour of you..

Tapal Manjunath Reddy (Expert)
13 October 2019

Yes..Seller can still execute an agreement of sale in favour of you inspite of existing loan on the property... However, there should be specific recital in the agreement of sale that the vendor shall clear the loan if any exists and deliver encumbrance free property at the time of execution of Registered sale deed in favour of you..

Sri Vijayan.A (Expert)
13 October 2019

The owner of property can enter into agreement for sale of the property when it is mortgaged. The thing is that he has to reveal the same in the agreement.
If the buyer agrees, the property can be sold in mortgaged condition with the liability of repaying the loan.
So,in your case, the agreement is valid.
A. Sri Vijayan
9444048547

Dr J C Vashista (Expert)
14 October 2019

I agree with experts agreement to sell is valid.
When you are aware the property is mortgaged with LIC Housing Fincance Corporation/Company creating an encumberance on it, why and how you are interested in it?
Before execution and registration sale deed the vendor (seller) must repay outstanding amount to the financier.
If you are still interested consult a local prudent lawyer for better appreciation of document/facts, guidance and proceeding.



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