Purchase of Flat 10 years seller has lic loan
Querist :
Anonymous
(Querist) 03 October 2010
This query is : Resolved
I want to purchase a flat where the seller has a loan with lic. normally there is a need of a ec and a noc from lic. can there be an agreement which states that i pay the money - in range of 5-6 lacs before the property agreement, where the original property papers will be deposit with a third party, till the sale agreement is settled. I have also to have papers for processing my home-loan. what would be your recommendation on how to proceed.
R.Ramachandran
(Expert) 03 October 2010
Your suggestion of paying Rs. 5-6 lakhs and the property papers would be deposited with third parties is not workable, since currently the documents of the flat would be lying with LIC. LIC will release the original documents only after getting their due.
According to me, firstly the amount (balance principal and interest) that needs to be paid to LIC has to be ascertained from LIC.
You have to talk to your banker or lending agency whether they are agreeable to give the loan to you on the basis of agreement to sell (which will clearly indicate that the property is currently under mortgage with LIC, and upon getting money from the proposed sale, the loan would be first repaid, the documents got released and registration / conveyance deed would be executed in favour of the buyer).
First get a draft agreement on a plain paper, show it to your bankers, if they are convinced and agreeable, then get the Agreement to sell in a proper stamp paper and then proceed.
PALNITKAR V.V.
(Expert) 03 October 2010
What Mr. Ramchandran says is right. You can also approach LIC for transfer of loan in your name i.e. you shall step in the shoes of the earlier owner and pay the loan dues with future instalments to the LIC
Kiran Kumar
(Expert) 03 October 2010
make LIC a party to the process, if the loan is transferred in your name only then you will be able to get the NOC and title to the property after the repayment of complete loan.
R.Ranganathan
(Expert) 03 October 2010
You can approach your bankers for takeover of the loan from LIC and purchase the property through your bankers. No need of closing the LIC loan at first and then going through other processes.
Chanchal Nag Chowdhury
(Expert) 03 October 2010
It all depends on Lic. If Lic agrees, U will have to settle terms for paying of the loan first.
Y V Vishweshwar Rao
(Expert) 03 October 2010
I Agree with Lrd Friends
1- Obtain a Sale Agreement by paying nominal Advance to Vendor
2- Obtain a letter from LIC stating that Outstanding loan amount for discharge of Mortgage and release of Title deeds
3- Apply before the bank and request the Your Bank to address a letter to LIC for an under taking from LIC to directly deliver the title Deeds to Your bank on payment of Total due amount to LIC
3- Get the Bank loan sanctioned
4- Pay the Balance amount( Your margin Money) to the Vendor on the date of Registration in your name and on the same Day Your Bank will pay the balance Sale Consideration being the proceeds of your loan amount to the LIC to discharge the LIC Mortgage and to take delivery of Title deeds form LIC
Querist :
Anonymous
(Querist) 03 October 2010
Since the bank's business is to earn interest on loan, I do not think that any banker would like the loan amount to be discharged by another buyer, unless the target buyer is also taking a loan from the same institution.
Querist :
Anonymous
(Querist) 03 October 2010
I am toying with another idea. Give some token amount to the buyer, occupy the house on a rental agreement, actually accompany the seller to payoff his loan with the buyer's money, and then proceed with the Bank loan. The time-window between discharging the loan, and getting a fresh loan to payoff the buyer, the documents should rest with a 'Trustee' who could be a common lawyer ?
