Mortgage deed and agreement to sale

Querist : Anonymous (Querist) 11 March 2022 This query is : Resolved
Dear Experts,
Here is my query presented point wise as
1) My uncle has entered into registered agreement to sale with the owner, as the buyer of an apartment.
2) He then mortgaged the said apartment via registered mortgage deed, with the bank for home loan.
3) He had paid the mortgage money (home loan) and the bank is OK with the issuance of NOC.
*Please note that bank has given the loan on Reg. agreement to sale only and there exists NO Sale Deed for the apartment.

My query, how to nullify the charge created by reg mortgage deed. Reconveyance, possible? As there exist no title deed (sale deed for reconyance), is it possible for the bank to reconvey the mortgaged property?
If there exists any way out to clear off the charge of mortgage from the apartment, which was agreed to be purchased by my uncle, please guide.

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Quick Summary

This discussion addresses how to remove a mortgage charge from an apartment when the loan has been fully repaid, but a sale deed has not yet been executed. The primary concern is nullifying the mortgage deed, as the bank provided the loan based solely on a registered agreement to sale. Experts advise that once the loan is paid, the bank will issue a redemption letter or loan clearance certificate, which serves as proof of mortgage cancellation. The bank is then obligated to remove the property from CERSAI. Following this, the buyer can pursue the builder or original owner to execute the sale deed, potentially by approaching the Registrar or filing a civil suit if necessary.

Querist : Anonymous (Querist) 11 March 2022
Please help with the process

J K Agrawal (Expert) 12 March 2022
Bank will give you redemption letter stating that the loan is paid and bank now having no charge over property.

The bank is duty bound to remove the property from CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India).

Then you will get property as you were having. that is property own under un registered sale deed.
Now you can force to builder or previous owner to get sale deed registered. If he denies, you may go the the Registrar for this. You may file a civil suit also but to go to the registrar is short cut and cheaper way.

SHIRISH PAWAR, 7738990900 (Expert) 12 March 2022
Hello,

As per point 3 your uncle has paid the loan to bank. Thereafter bank will issue loan celarance certificate to your uncle. The certificate itself is proof that mortgage is cancelled. Your uncle can collect the documents from bank.

Advocate Bhartesh goyal (Expert) 12 March 2022
Well advised by expert J.K.Agarwal.I agree with him.

Dr J C Vashista (Expert) 17 March 2022
Very well analysed, opined and advised by expert Mr. JK Agarwal, I concur.

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